Back and lay odds explained
BACK AND LAY ODDS: To help me explain Betfair exchange, and their back and lay betting options i took this game between Barcelona and Villareal in the Spanish Cup as an example which btw. did not start yet, meaning this odds are not moving in the moment but, during the match of course they change all the time e.i. they fluctuate.
On the Betfair site you can also find a video guide how to bet, so it is quite simple and easy even for an absolute beginner. Back and lay odds explained :
Specifically for this game except the basic offer, you can bet on numerous betting lines (over 30 events ). If we take a look at the picture above , we can see some of the basic information about the game. So till now on this match(event) has been placed 37.585,00 euros.
As we see it on the picture, we have Betfair back and lay bets, and that is maybe the main difference between Betfair exchange service and other Bookmakers.
The Back betting option presents the normal or lets say the usual bet on a specific team e.i. a bet that a specific team will win or if you choose to put back on a draw or a loss.
Therefore if we want to bet on Barcelona we can choose the odds ourselves , and the bet will be placed if or when somebody from the other users offers the same odds that Barcelona will not win( hence you can choose and put e.g 1.70 on Barcelona, or even 3.00 (odds like this one we can only expect to be placed only if during the match at some point Barcelona is behind).
In this case, the most simple way of making a bet is picking the Back option on Barcelona (1.55) ( for now on that odd we can place 348 euros, while the rest, if we are betting more than 348 euros we will be on wait till somebody bets on the lay option on Barcelona on that odds) With a click on the chosen square we enter the amount we want( e.g. 10 euro) and the bet is being placed on the listed odd. In this case if Barcelona wins, you will have a win (gain) of 15,50 euros. E.i. profit of 5,50 euros deducted for 5% (commission) resulting in 5,23 e.i. 15,23 euros.
If the bet is placed, that basically means that somewhere in the world there is a person who offered the odds that Barcelona is not going to win, which you took. So if Barcelona wins Betfair is going to transfer the amount of your profit from the account of that person immediately into your account. But if Barcelona does not win that person who in this case represents the Bookmaker, will get the amount of your stake ( in this case 10 euros)
Back and lay odds
If you want to act as the Bookmaker e.i. bet that one or the other team is not going to win you choose the Lay option on a certain team, e.g. if you think that Barcelona is not going to win, you can offer Lay on Barcelona 1,56.
Also enter the amount of money you want to win e.g. 20 euros. That is biggest difference between back and lay betting options. With Back you enter the stake, while with Lay we enter the amount which we want to gain or profit. Of course on the right side of the screen Betfair calculates the stake. Lay on 1,56 can be also converted in the „ normal odds“ in the following way 1,56/0,56=2,78 . So we can look at Lay 1,56 like we just bet x2 on 2,78 match odd.
In the case that Barcelona wins you lose 20*1,56-20 =11,20 euros which are transferred into the account of the person who bet that Barcelona is going to win. If Barcelona doesn´t win, the amount that somebody placed on your odds on Barcelona is added into your account. So int his case if Barcelona doesn´t win you would get 20 euros which somebody has placed on Barcelona
Betfair back and lay odds and bets are not more clearer , also you can find out more about Betfair here.