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.
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
Our Betfair Exchange £4.72 lay bet loses (why £4.72? Check the 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.
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.
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!