Back & Lay Betting – The Backbone of Matched Betting
When you are Matched Betting, it is all about back and lay betting. It involves bets being placed on the opposite results of the same market. Back and lay betting relies greatly on the use of a bookmaker to place a back bet and a Betting Exchange to lay the bet.
Essentially, back and lay betting covers all outcomes of an event, generally used on sporting events such as football matches and horse racing. This strategy can be used for several matched betting strategies such as extracting profit from free bets and arbitrage.
What Is A Back Bet?
A Back Bet is the prediction that an outcome will happen in an event. To understand what a back bet is, lets look at an example football match – Manchester Utd vs Arsenal. If a bet is placed on a Manchester Utd win, then the bettor has ‘backed’ Manchester Utd.
If Manchester United win, then their bet is a winner. On the other hand, if the match finishes as a draw or an Arsenal win, then their bet is a loser.
If a £10 back bet is placed on a market at odds of 2/1 (3.0) then the bettor will receive £30 back, of which £20 is profit. If the bet is a loser, then the bettor will lose their £10.
What Is A Lay Bet?
A Lay Bet is essentially the opposite of a back bet. Looking at the previous example, if a bettor placed a Lay Bet on Manchester United, then they have bet on them to NOT WIN the match.
If Manchester Utd win the match, then they will have lost the best. However, if the match ends as a draw or an Arsenal win, then their bet is a winner.
If a £10 lay stake is placed on a market at odds of 2/1 (3.0) then the layer will receive £10 profit if their bet is a winner. If the bet is a loser, then they will lose £20.
When a bettor places a lay bet at the Betting Exchange, they are essentially playing the role of a bookmaker.