What is LIABILITY? (Betting Exchanges) | Matched Betting

What is LIABILITY? Important to understand for anyone learning HOW TO START MATCHED BETTING!
In this video we’ll show you how to CALCULATE LIABILITY when placing LAY BETS on BETTING EXCHANGES (like The Betfair Exchange and Smarkets).

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🕘 Timestamps:
0:00 - Introduction
0:34 - What is Liability
1:05 - Back Bet (Example)
1:38 - Lay Bet (Example)
2:05 - Lay Bets on Betting Exchanges
2:29 - Calculating Liability
3:03 - Liability Size
3:27 - Liability Importance
3:38 - High Liability (Example)
4:27 - Matched Betting Technique
5:10 - Combined Liability
5:17 - OddsMonkey (Free Trial)
5:26 - Outro

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🎥 Video:

Betting liability explained! When placing lay bets on The Betfair Exchange and Smarkets, liability can seem complicated... But in this video we explain what liability is, how to calculate liability and why liability is so important to understand - especially if you’re new to matched betting!

The Smarkets Help Centre defines liability as:
“Bet liability refers to the amount you are risking when placing a bet - whether that's backing or laying an outcome. This amount will be deducted from your balance should your bet lose.”

In layman’s terms, liability is the maximum you could lose from a losing bet.

Calculating liability (for 1 single bet) uses the following equation:
“Liability = (Lay Stake x (Lay odds - 1))”
When using using this equation, ensure that you’re using decimal odds (NOT fractional odds). And make sure to perform the subtraction, before doing the multiplication.

Lay bet liability can be higher or lower than the lay bet stake, it all depends on the lay odds - see the equation above.

Because of the equation - the higher the lay odds, the higher the liability. And visa versa, the lower the odds, the lower the liability.

Liability is important to understand, especially if you’re a matched betting newbie and you don’t have a lot of money to start with. If you place a back bet with high liability, then try to place a lay bet (without checking how high the required liability is), you may be left in a situation where you don’t have enough cash in your betting exchange account, to place that lay bet. This leads to you having an active back bet, without having an active lay bet against it. We call these ‘exposed’ bets - as you’re leaving yourself exposed to luck. Matched betting is always performed with a back bet and opposing lay bet, on the same event.

‘Combined liability’ is where you can reduce the amount of cash required in your exchange account, by placing multiple lay bets on the same event. Particularly useful for big Matched Betting events (e.g. Horse Racing during the Cheltenham Festival).

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Видео What is LIABILITY? (Betting Exchanges) | Matched Betting канала TheFrugalife