Quote:
Originally posted by Claymores
Quote:
Originally posted by BB22
Would you mind explaining that in simple terms for the betting layman, Claymores? I am kind of interested.
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I'll use the real world example:
TheDarkHorsey has placed a shrewd bet of £50 on Marcus back when it was 33/1. This offers a huge profit of £1650 if he wins or a £50 loss if he doesn't.
What the forum member could choose to do is to hedge now that Marcus' odds have shortened greatly:
He could go on Betfair and lay Marcus (that is to say bet against him winning) using a proportion of the notional profits from the original bet.
He could offer another punter a bet of £300 @ say 9/2 the Marcus win (at a potential cost of £1350)
If Marcus then won, the FM's GUARANTEED PROFIT would be £1650-£1350 = £300
BUT ALSO
If Marcus didn't win, the FM's FUARANTEED PROFIT would be £300 (the Betfair punters' stake) less £50 (the FM's original stake money) =£250
SO, in thiis example, £300 profit if Marcus wins, £250 profit if he doesn't win with no losing possibilities.
The amount of the lay, is of course, just an example and TheDarkHorsey could throttle that down such that he/she has the chance to win more if Marcus wins and maybe just break even (by covering the £50 stake with a £50 lay) if Marcus is not the winner.
Hope this all makes sense!!!!
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It certainly does. Thanks for the explanation.
