What is Liability?
The popularity of betting exchanges has grown drastically and it's no surprise. Betting exchanges such as Betfair, offer a great way for customers to receive improved betting odds (i.e price) and take on the position of a bookmaker ourselves. Betting exchanges play a very important role for matched betting as we use betting exchanges to lay (i.e hedge) our bets made with a bookmaker in order to break even and qualify for the free bets, bonuses, and offers which guarantee us profit.
Matched betting is the best way to make risk-free, tax-free money online and is taught extremely well by Profit Squirrel. As you experience using a betting exchange, it's important you understand what we mean by 'liability' in betting exchanges...
The following video below will explain everything you need to know about liability in betting exchanges.
So, how is liability calculated? Thankfully, you don't need to calculate this yourself, Profit Squirrel's advanced calculators will do everything for you. Below is an example of using Profit Squirrel's odds calculator, which shows that if we placed a lay stake of £38.46 at lay odds of 4.7 in the betting exchange, our liability is £138.46. This means if our lay bet loses, we need to pay out £138.46. Don't worry about liability too much, it's offset by your winnings in your bookmaker account.
All you need to know is that liability is the amount you need in your betting exchange account to take on certain lay odds and stakes.
In the odds calculator example above, it shows that no matter what the result of the event, we make a guaranteed profit of £36.54!
We hope this guide helps you understand liability in betting exchanges. If you have any questions, please visit the Profit Squirrel member's forum or simply contact us, our customer support team are happy to help.
To Your Success,
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