Master Back & Lay Betting: Betfair Basics Made Simple

Unlike traditional bookmakers where you can only bet FOR an outcome, Betfair lets you bet AGAINST outcomes too. This unlocks trading strategies impossible anywhere else - think of it like going long or short in stock trading.

What You'll Learn

Back = bet FOR an outcome (like traditional betting)
Lay = bet AGAINST an outcome (unique to exchanges)
Combine both to lock in guaranteed profits
Lay betting covers multiple outcomes simultaneously
Manage liability carefully when laying

Back Betting: The Familiar Side

Backing means betting for something to happen. This is traditional betting.

Example: Back Manchester United to win at 2.50

Stake: £10
Potential profit: £15 (£25 total return - £10 stake)
You win if Man Utd wins
You lose £10 if they don't win

Simple. You already know this.

Lay Betting: The Game Changer

Laying means betting against an outcome. You become the bookmaker.

Example: Lay Manchester United to win at 2.50

Stake: £10
Liability: £15 (what you pay if they win)
You win £10 if Man Utd loses OR draws
You lose £15 if they win

Why Laying is Powerful

One lay bet covers two outcomes (loss + draw). Backing only covers one (win). This gives you more ways to profit and opens up trading opportunities impossible with traditional bookmakers.

Understanding Liability

Liability = your maximum loss when laying.

Formula: Liability = Stake × (Odds - 1)

£10

Lay at 2.00

£40

Lay at 5.00

£90

Lay at 10.00

Pro tip: Start with low odds (1.50-3.00) when learning to lay. Lower liability = less risk while you master the mechanics.

Trading: Combining Back and Lay

The real power comes from using BOTH to manage positions and lock in profits.

Trading Example

Pre-match: Back Liverpool at 3.00 (£10 stake)

In-play: Liverpool scores early, odds drop to 1.80

Action: Lay Liverpool at 1.80 (£16.67 stake)

Result: Guaranteed £6.67 profit whether Liverpool wins or not

This is called "trading out" - exactly like closing a stock position for profit. You've locked in gains regardless of the final result.

Risk Management Essentials

Calculate Before You Lay

Laying at 2.50 with £10 stake = £15 liability

Laying at 10.00 with £10 stake = £90 liability

Always know your maximum loss before placing the bet. Use Traderline's automatic liability calculator to avoid surprises.

Safe practice:

Start with £2-5 stakes
Use odds between 1.50-3.00
Never risk more than 2-3% of your bankroll on one trade
Set stop-losses before entering positions

Why Betfair Beats Traditional Bookmakers

20%+

Better Odds

100%

Trade Live

∞

No Limits

Betfair advantages:

Better odds (no bookmaker margin)
Trade in-play (back and lay during events)
No betting limits for winners
Full control over your positions
Lock in profits before events finish

Traditional bookmakers:

Worse odds (built-in profit margin)
Locked into pre-match bets
Account limits if you win consistently
No position management
Must wait for event to finish

Common Beginner Mistakes

Avoid These Errors

1. Laying high odds: Massive liability can wipe you out

2. Not calculating liability: Surprises are expensive

3. No stop-loss: Small losses become big ones

4. Overtrading: Quality beats quantity

5. Ignoring liquidity: Can't exit when you need to

Next Steps

Your Action Plan

Week 1: Practice backing only with small stakes (£2-5)
Week 2: Add laying with low odds (1.50-3.00)
Week 3: Try simple trading (back then lay for profit)
Week 4: Increase stakes gradually as confidence grows
Always: Calculate liability before every lay bet
Use: Traderline for automatic calculations and one-click trading

Master these basics first. Once back and lay betting feels natural, you're ready for advanced strategies like scalping, swing trading, and dutching.