Understanding Liability

View Liability Video Here


Understanding What Liability is and how it Works is Vital, it can seem confusing when you first start Matched Betting . When we place a Back Bet we could lose our Stake, so if we place a £5 Back Bet we would lose that if the bet lost

When we are Laying a Bet we are becoming the Bookmaker. We are taking somebody's Bet and we must pay them out if they win. If Somebody places the following bets below and they win the bet we would have to pay them the Liability

£5 @ 3.00 - Liability is £10
£10 @ 3.00 - Liability is £20
£5 @ 4.00 - Liability is £15
£10 @ 4.00 - Liability is £30

A Simple way to work out how Liability works is : Liability is Odds Minus 1 x Your Stake

Using my Example above of £10 @ odds of 4.00

(Odds 4.00 ) Minus 1 = 3.00 X Stake (£10) - 3 x £10 = £30 Liability

You would need to have enough in your Betting Exchange to be able to place the Lay Bet. So using the example above you would need at least £30 in your Exchange Account

We Must always remember that if we have done the Matched Bet properly although you would lose the Liability if your Lay bet loses it will be covered because your Back Bet at the Bookmaker would be a Winner. So they have cancelled each other out

Below I will give an example of a real life Lay Bet showing Liability.

The Blue Arrow is showing the Odds 3.00 and the Red Arrow is showing our Liability £20.

Liability is Odds Minus 1 x Your Stake

Our Odds are 3.00 (Minus 1) = 2.00

So 2.00 x our Stake (£10) = £20 Liability

To place the LAY bet we would need £20 in our Exchange account to cover the BACK Bet we would be placing at the Bookmaker. Please remember this amount is not at risk as should the LAY bet lose (Under 1.5 Goals) the BACK Bet at the Bookmaker would have won which would give us the following result.

So we would have Placed a £10 Back Bet with The Bookmaker at odds of 3.00

We Then Placed the Above Lay Bet to Cover all Possible Outcomes.

Here is the Position we would be with a Free Bet to come

Bookmaker Bet Wins - Win £20 at Bookmaker + £10 Stake Returned = £30

Exchange Bet Wins - Lose £10 at Bookmaker BUT Win £9.50 at Exchange + £20 Liability Returned = £29.50

So the 50p Difference is all we are putting at Risk to earn the Free Bet

As you do more of the valuable Offers you will need more Liability to cover your bets so make sure you have enough funds in the Betting Exchange

Hopefully you now have an understanding of what Liability is and how it works in regards to laying your bets at The Betting Exchange