Trigger Bet Tip: Choose Low Odds

In ‘Step 1 - Choosing Your Trigger Bet’ we said by choosing lower odds for your bookmaker trigger bet, you will need a lower liability in your Betfair Exchange account.

In this optional article, we explain exactly why this is.

Recap - What is Liability?

When we place our lay bet on Betfair Exchange, we need to have enough money to cover the chance that our lay bet may lose.

This is know as our liability and can be seen in the Betfair Exchange betslip:

spain liability

Why does Lower Odds = Lower Liability?

The lower odds the bookmaker, we stand to win less on the bookmaker.

However, because we are placing the opposite bet on Betfair Exchange (the lay bet) we also stand to lose less on Betfair Exchange.

Therefore, the lower the odds we choose, the less money we need in Betfair Exchange, known as our liability.

Gimme an example with low odds!

Sure, let’s take the Euro 2016 example of Spain to beat Denmark on Coral at 1.5 and Betfair Exchange lay odds at 1.52.

Note 1.5 odds on Coral are the lowest odds we could use, given their minimum odds are 1.5.

On Coral

spain coral

If Spain win, our Coral £5 bet wins. This increasing our Coral balance to £7.50.

The maths is £5 x 1.5, for a net win on Coral of £2.50.

On Betfair Exchange

spain betfair

Our Betfair Exchange £5.10 lay bet loses (why £5.10? Check the  Calculator screenshot). We lose our liability of £2.65 because, in effect, we are paying out someone else’s £5.10 bet with the odds of 1.52 we gave them.

The maths is £5.10 x (1.52 - 1), for a net loss on Betfair of £2.65.

Our Liability

265 liability

By choosing low odds of only 1.5 for our £5 trigger bet, we only need £2.65 in our Betfair account to cover our liability.

Gimme an example with high odds!

Coming right up, let’s take the Euro 2016 example of Ukraine to beat Germany  on Coral at 6.0 and Betfair Exchange lay odds at 6.4.

On Coral

germany coral

If Ukraine win, our Coral £5 bet wins. This increasing our Coral balance to £30.

The maths is £5 x 6, for a net win on Coral of £25.

On Betfair Exchange

germany betfair

Our Betfair Exchange £4.72 lay bet loses (why £4.72? Check the Calculator  screenshot). We lose our liability of £25.49 because, in effect, we are paying out someone else’s £4.72 bet with the odds of 6.4 we gave them.

The maths is £4.72 x (6.4 - 1), for a net loss on Betfair of £25.49.

Our Liability

liability 2549

By choosing high odds of only 6.0 for our £5 trigger bet, we now need £25.49 in our Betfair account to cover our liability.

Examples Summary

By choosing low odds of only 1.5 rather than high odds of 6.0 for our £5 trigger bet, we only need £2.65 in our Betfair Exchange account, rather than £25.49!