What is a lay bet and what does the term ”lay” mean?
To lay a bet is to back something not to happen.
For example, to lay Liverpool to win their match is to back them NOT to win. So if Liverpool Draw or Lose then your Lay bet would win.
However, Lay betting is only available via Betting Exchanges.
Betting exchanges allow people to bet against each other rather than against a bookie. The largest exchange is Betfair but there are others to choose from.
With Betfair you can not only lay any selection, but also choose the price you want to take, and how much you are prepared to risk. The shorter the price you wish to lay, the less money you have to risk compared to your potential reward.
Examples:
Laying a Draw in a soccer match at 13.5 might sound safe, but for every £10 you want to win, you have to risk £125 - high risk and low reward.
In a horse racing market, the horse “Tiger Roll” at 1.9/1.91 are much more likely to win, but to win £10 by laying that outcome, you only need to risk £9.10.
Why do people lay bets?
There are all sorts of reasons why people lay bets:
Some people lay a bet because they think the price is too short.
Some people find it easier to pick a horse to lose rather than one to win.
Others will lay first, then to back the same selection later in-play. This is called Trading.
I’m scared of laying!
Don’t be! You are in full control of how much you wish to risk and how much you could win. In a lay bet, you always stand to win the stake of the opposing bet (e.g. £10 in the examples above).
How does the exchange make money?
On all betting exchanges they make money by charging a small commission fee on net winnings on each market. This can range from 2-5% depending on how much you trade.
Placing a Lay bet
A lay bet example
Select a market, choose a selection you want to lay and click on the best lay price/odds. In the image shown you are laying the draw at odds of 5.1. The backer is staking £10.
Your potential profit: £10
Your potential loss: £41
Your liability of £41 is taken from your balance as this is your worst case scenario. The payout will be £51 but that includes the stake from the backer. If this bet was matched, there would effectively be a pot of £51 for someone to collect. (The backers £10 stake, and the layer’s £41 liability.
If the match ends a draw you would have to pay £41 to the winning customer. If the game ends in a win for either team then you win £10 (less commission).
When laying a bet, you can only win the other person’s stake.