So, where does back and lay betting come into this? Enter back and lay betting. Back lay betting is the main concept behind matched betting and other low-risk trading strategies. It allows punters to make a guaranteed profit without putting their own money at risk.
In case of a Win by either Team A or B you will get your 10 Euros from the “lay”-bet, less the amount of the “back”-bet (10 Euros “lay”-profit – 6.62 Euros “back”-loss = 3.38 Euros clear profit). In case of a Draw you will get your “back”-profit decreased by the “lay”-loss.
Basically, you can bet that a certain outcome will happen (back) or that it won’t happen (lay). If you’re laying a bet, it means that you’re betting that any other outcome will happen. If you’re placing a back bet, it’s as if you were betting that the outcome in question is going to happen, the same way you would do in a regular sportsbook.
A traditional bookmaker takes 'back' bets. You back an outcome in a betting market and the bookie pays out if your bet wins. However, betting exchanges - such as Betfair - allow you to 'back' or 'lay'. As well as being able to 'back' an outcome, you can also take on the traditional role of the bookmaker and 'lay' it.
Back and lay betting is a way of creating a position in a betting exchange market where you are guaranteed to win, no matter the outcome. Think of it like the stock market, where the principle is to buy high and sell low.
Back and Lay Betting are the principal elements of matched betting, where you consider all possible outcomes of a specific event. By strategizing and executing back and lay bets, you are able to consistently earn a regular stream of income from matched betting .
Back betting is where you choose to buy into odds. This simply means you are staking money on an event happening. This is more or less a basic bet that you’d otherwise undertake at a bookmaker in a nutshell. Lay betting, however, is the opposite. This is where you are effectively betting on an event not to happen.
When you back something to win, the most that you are going to lose is your initial stake. In a lay bet, your overall liability, or risk, can be greater. The total risk involved is therefore the amount the bet will cost you if your selection (that you backed to lose) actually wins.