What Does Bet Back Mean: A Beginner’s Guide to Back and Lay Betting

12 min read
Sep 9, 2024, 7:14 AM

Understanding Back and Lay Bets

Back and lay betting are fundamental concepts in when learning about sports betting, particularly when using betting exchanges. 

These two types of bets form the foundation of how betting exchanges operate and provide bettors with unique opportunities to profit from sporting events. 

Understanding the difference between back and lay bets is crucial for anyone looking to engage in more advanced betting strategies or explore alternatives to traditional bookmakers.

A back bet is the more conventional type of bet that most people are familiar with. When you place a back bet, you are betting on a particular outcome to happen. 

For example, if you back Man City to win a soccer match, you win your bet if Man City wins the game. This is essentially what betting means in the traditional sense.

A lay bet is the opposite. When you lay a bet, you are betting against a particular outcome happening. 

Using the same example, if you lay Man City to win, you are essentially betting that Man City will not win the match — meaning you win if they either lose or draw.

Lay betting is a unique feature of betting exchanges and is not typically available with traditional bookmakers.

Key Point
The main difference between back and lay bets is that backing means betting on something to happen, while laying means betting against something happening.

The table below provides a basic summary of each bet type:

AspectBack BetLay Bet
PositionBetting for an outcomeBetting against an outcome
RoleActing as bettorActing as bookmaker
Profit(Stake * Odds) - StakeBacker's Stake

How Betting Exchanges Work

Betting exchanges operate on a peer-to-peer model, allowing bettors to bet against each other rather than against a bookmaker. 

This system facilitates both back and lay betting, creating a more dynamic betting environment. 

Understanding how betting exchanges work is essential for anyone looking to engage in back and lay betting.

On a betting exchange like Betfair, every betting market has two sides: the back side and the lay side. Bettors can choose to either back or lay an outcome at the odds available, or they can offer their own odds. When a backer's odds match a layer's odds, the bet is instantly matched, and the exchange takes a small commission on the winner's profit.

The betting exchange acts as an intermediary, holding the stakes and distributing winnings after the event concludes. 

This system allows for more flexibility in betting, as bettors can request better odds than those currently available, or even trade their position before the event ends.

For example, in a football game between the Kansas City Chiefs and Chicago Bears, you might see odds of -150 for the Chiefs to win. On a betting exchange, you could choose to back Kansas City at these odds, or you could offer to lay the Chiefs at slightly higher odds, hoping that someone will match your bet.

What is a Back Bet?

A back bet, also known as backing, is the most common type of bet and is what most people think of when they consider betting.

When you place a back bet, you are wagering your own money on a specific outcome occurring, like a team going over a particular point total or covering a spread. 

If your prediction is correct, you win your bet and receive your stake back plus the winnings based on the odds at which you placed the bet.

Back bets can be placed on various outcomes in sporting events, such as a team winning a match, a player scoring a goal, or a horse winning a race.

The potential profit from a back bet is calculated by multiplying your stake by the decimal odds and then subtracting your original stake.

For example, if you place a $10 back bet on the Baltimore Ravens to win at odds of +100, your potential profit would be $20 ($20 total return minus your $10 stake). In this scenario, you would win your bet if Baltimore wins. If the Ravens lose, or the game ends in a tie, you would lose your $10 stake.

Back betting is often preferred by casual bettors due to its simplicity and the fact that your liability (the amount you can lose) is limited to your stake.

What is a Lay Bet?

A lay bet is the opposite of a back bet and is a unique feature of betting exchanges. 

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When you place a lay bet, you are betting against a specific outcome coming to pass. In essence, you are acting as the bookmaker, offering odds to other bettors who want to back that outcome.

When you lay a bet, you are taking on the role of the bookmaker for that particular bet. This means that if the outcome you're laying doesn't happen, you win the backer's stake. However, if the outcome does occur, you have to pay out the backer's winnings.

For instance, if you lay Liverpool to win a soccer game you win your bet if they lose or draw.

However, if Liverpool wins, you have to pay out to those who backed them. The amount you have to pay out depends on the odds at which you laid the bet and the stake of the backer.

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When laying bets, your liability (the amount you can lose) can be higher than your stake, especially when laying at high odds. Always calculate your maximum liability before placing a lay bet.

Placing a Lay Bet: A Step-by-Step Guide

  1. Choose a betting exchange: Select a reputable betting exchange like Betfair. Create an account and deposit funds.
  2. Select an event: Navigate to the sport and event you want to bet on. For example, a Premier League football match.
  3. Find the market: Choose the specific market you want to lay. For instance, the "Match Odds" market for a game between Man City and Leicester City.
  4. Select the lay odds: On the betting exchange, lay odds are typically displayed in pink. Click on the lay odds for the outcome you want to bet against.
  5. Enter your stake: Input the amount you want to risk. Remember, this is the amount you'll win if your lay bet is successful.
  6. Check your liability: The betting exchange will automatically calculate your maximum liability. This is the amount you'll lose if your lay bet loses.
  7. Confirm your bet: Double-check all the details and confirm your lay bet.

Remember, when placing a lay bet, you're betting that something won't happen. If your prediction is correct, you win the backer's stake. If you're wrong, you have to pay out based on the odds and stake you accepted.

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For instance, if you lay Man City to win at odds of +100 with a $10 stake, your liability is $10. If Man City doesn't win, you profit $10. If Man City wins, you lose $10.

Back and Lay Betting Strategies

Back and lay betting strategies can range from simple to complex, offering various ways to potentially profit by making winning bets on sporting events. 

One common strategy is known as "trading," where bettors aim to take advantage of fluctuations in odds on betting sites before or during an event.

Strategy Example
In a horse race, you might back a horse at high odds with a bookmaker's free bet offer, then lay the same horse on a betting exchange at slightly lower odds. This guarantees a profit regardless of whether the horse wins or loses.

Matched betting is a strategy that utilizes back and lay betting to profit from bookmaker offers. 

By backing an outcome with a bookmaker (often using a free bet) and then laying the same outcome on a betting exchange, bettors can lock in a profit regardless of the event's outcome.

##callouts#2

Calculating Back and Lay Bets

Calculating potential profits and liabilities for back and lay bets is crucial for making informed betting decisions. 

For back bets, the calculation is relatively straightforward:

Potential Profit = (Stake * Odds) - Stake

For lay bets, the calculations are a bit more complex:

Backer's Stake = Lay Stake Layer's Liability = (Lay Stake * (Lay Odds - 1)) Layer's Profit (if lay bet wins) = Lay Stake

It's important to note that betting exchanges typically charge a commission on net winnings, which should be factored into your calculations.

Common Mistakes to Avoid

When engaging in back and lay betting, there are several common mistakes that bettors should be aware of and try to avoid:

  1. Misunderstanding liability: Many new layers underestimate their potential losses, especially when laying at high odds. Always calculate your maximum liability before placing a lay bet.
  2. Ignoring commission: Betting exchanges charge a commission on net winnings. Failing to account for this can lead to overestimating potential profits.
  3. Chasing losses: This is a common mistake in all forms of betting. Stick to your betting strategy and don't increase stakes to recover losses.
  4. Lack of research: Successful betting requires thorough research and understanding of the sport and specific event you're betting on.
  5. Poor bankroll management: Set aside a specific amount for betting and never bet more than you can afford to lose.

Tip: Always use a lay bet calculator when placing lay bets to ensure you understand your potential profit and maximum liability.

Advanced Betting Topics

For those looking to delve deeper into the world of back and lay betting, there are several advanced topics to explore:

  1. Arbitrage betting: This involves taking advantage of discrepancies in odds between different bookmakers or between a bookmaker and a betting exchange to guarantee a profit.
  2. In-play trading: This strategy involves backing and laying during a live event to take advantage of odds movements based on the action unfolding.
  3. Hedging: This is the practice of placing bets on different outcomes to either guarantee a profit or minimize potential losses.
  4. Asian handicaps: These are a form of handicap betting popular in football that can offer opportunities for back and lay betting.
  5. Each-way betting: This type of bet, common in horse racing, involves placing a bet on a horse to win and a separate bet on the same horse to place.

FAQ

Betting Back
What does bet back mean?
Lay Betting
How does lay betting differ from traditional betting?
Profitability
Can I make guaranteed profit with back and lay betting?
Betting Exchanges
What is the difference between a betting exchange and a traditional bookmaker?
Legality
Is back and lay betting legal?
Nick Ashbourne
Nick Ashbourne
Senior Writer

Nick has been fascinated with sports since he was first taken to a Toronto Maple Leafs game back in 1998, and he's written about them professionally since 2014.

Nick has covered baseball and hockey for outlets like The Athletic, Sportsnet, and Yahoo Sports, and his sports betting expertise has grown since its legalization in Ontario in 2022. 

Between 2022 and 2023 he worked for a betting startup called NorthStar Bets, and in 2024 he contributed to Oddspedia before joining the Responsible Gambling team.

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Nick Ashbourne
Nick Ashbourne
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Nick has been fascinated with sports since he was first taken to a Toronto Maple Leafs game back in 1998, and he's written about them professionally since 2014.

Nick has covered baseball and hockey for outlets like The Athletic, Sportsnet, and Yahoo Sports, and his sports betting expertise has grown since its legalization in Ontario in 2022. 

Between 2022 and 2023 he worked for a betting startup called NorthStar Bets, and in 2024 he contributed to Oddspedia before joining the Responsible Gambling team.

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