One of the most common uses of the Betfair Exchange is to cash out a sportsbook bet that’s potentially lowered in price and given you a positive cash out on the bet. It’s a very simple concept to implement when you’ve managed to beat the starting line on a particular Sportsbook bet. For example, you could back a selection when the odds are first priced at 2.20, during the next few days in the lead-up to the match, their price could drop due to a number of different factors (such as team news and market movements.)
If you want to check out the difference between the Betfair Exchange and Betfair Sportsbook give our Betting Guide a read.
How does it work?
A cash-out feature allows users to settle bets before an event ends, enabling them to lock in a profit or minimize losses.
To use the cash-out feature on Betfair Exchange, place a bet on a qualifying market and you will see a cash-out icon next to your bet slip which will indicate the current cash-out value of your bet.
Click on the cash-out icon, and your bet will be settled at the current cash-out value. You there are auto and partial cash-out features which are discussed below.
One way of ensuring you’ll make a profit on your original Betfair sportsbook bet, is to lay the selection at the now lower odds on the Betfair Exchange. It’s a rather simple way of beating the movements of the price and ensuring that whatever the outcome of the initial bet, you’d still profit overall on this match.
Auto and Partial Cash Out
Betfair Exchange offers two additional types of cash-out features; namely auto cash-out and partial cash-out. Auto cash-out is a unique feature allowing you to automatically cash out your bet when it reaches a certain profit or loss amount, ideal for users who want to lock in a profit or minimize losses without having to constantly monitor their bets.
Partial cash-out allows you to take a portion of your winnings or losses while leaving the remaining amount to run until the end of the event, giving you the possibility to to win more.
Why use Cash Out on the Exchange?
Cash-out is a vital feature that allows you to lock in a profit before the event ends, which is useful if the outcome of the event is uncertain, or if you are not confident that your bet will win. Secondly, you can limit losses when your bet is heading south.
The feature can also be used as a hedging strategy. For example, if you have placed a bet on a horse to win a race, but you are not confident that it will win, you can use the cash-out feature to hedge your bet by placing a lay bet on the same horse, so both outcomes are covered.
When should I cash out?
This depends on various factors such as the odds, the state of play, and your risk tolerance. However, there are a few general guidelines that you can follow.
Start by considering if the cash-out value is higher than your original stake, so if the decision is made to cash out you make a profit. In addition, you should consider cashing out if the event is unpredictable, or if the odds have shifted against your bet.
When do I get the money I Cashed Out?
For amounts up to your original stake, you’ll get the money straight back into your account. If the cash-out value is more than your original stake, you’ll receive the profit when the market has closed, usually within a couple of minutes after the race or event ends.
For example, if you bet £50 on Horse A to win, and you choose to cash out at £10, then you will get £10 back into your account immediately (losing £40). However, if you chose to cash out at £70 then you will receive both £50 back into your account immediately and then an extra £20 in profit once the market has closed.
How cash-out is calculated on Betfair
The value of a cash-out is calculated by comparing the original odds with the odds at cash-out. The size of the original bet also affects the cash-out.
Please be aware that the cash-out amounts are not guaranteed as the live market prices are constantly moving, so you could receive more or less than you are expecting. You should consider the exchange’s cash-out terms in full.
