Market Maker Calculator
Calculate your liabilities and potential profit when you lay on an exchange
Input
Number of Selections: 3
Results
Enter valid odds to see results
What is Taking the Other Side on Exchanges?
When you lay on an exchange, you're essentially taking the other side of the market. Instead of backing an outcome to win, you're offering odds to other traders and accepting their positions. If they lose, you keep their stake. If they win, you pay out their winnings.
This calculator helps you understand your liability (what you'll lose if a selection wins) and potential profit (what you'll win if all selections lose) when laying multiple positions.
Understanding Key Concepts
Liability
The amount you'll lose if a selection wins: Stake × (Odds - 1)
Overround
Your market maker margin - should be over 100% for a profit margin
Max Liability
The worst-case scenario - your maximum potential loss
Potential Profit
What you keep if all selections lose (stakes minus commission)
Risk Management Tips
Laying carries different risks than backing. Here's how to manage them effectively.
Best Practices:
- •Know Your Liability: Always calculate your maximum loss before placing lay orders
- •Maintain Overround: Aim for 101%+ overround to ensure a profit margin
- •Diversify Stakes: Don't put all your liability on one selection
- •Account for Commission: Remember that commission reduces your profit, not your liability
- •Set Limits: Never risk more than you can afford to lose on a single market
How It Works
When you lay on an exchange, you're taking the other side of the market. This calculator helps you understand your liability (what you'll lose if a selection wins) and potential profit (what you'll win if all selections lose). The overround shows your margin - it should be over 100% for a positive margin.
Example
If you have £300 total stake to distribute across 3 selections with odds of 2.0, 3.0, and 4.0, each selection gets £100. Your maximum liability is £300 (if the 4.0 selection wins). If all lose, you keep the £300 minus commission.