Help me understand betting exchanges!

[Matt.NFFC.]

So, if I just laid £100 on a horse @5/1 and it won, I lose £500?

If it lost, what do I get back? Just my £100 stake or my stake plus what more?

[Pawprint]

So, if I just laid £100 on a horse @5/1 and it won, I lose £500?

If it lost, what do I get back? Just my £100 stake or my stake plus what more?

If you lay a bet, look at it as you being the bookmaker and taking the bet.

If it wins, you pay out at the odds stated.  If it loses, you pocket the stake.

[gatso]

So, if I just laid £100 on a horse @5/1 and it won, I lose £500?

If it lost, what do I get back? Just my £100 stake or my stake plus what more?

you don't have a £100 stake in this case. you're putting up £500 against someone elses £100. one of you scoops the lot

[kukushkin88]

So, if I just laid £100 on a horse @5/1 and it won, I lose £500?

If it lost, what do I get back? Just my £100 stake or my stake plus what more?

You never staked 100, you laid a bet of 100 and if it loses that is what you win. Your liability (500) is removed from your account until the result is determined. This is what you lose if it wins.

[Matt.NFFC.]

OK, almost got it now guys, so, when this horse loses, my account gets credited with £600 total yes?

[gatso]

OK, almost got it now guys, so, when this horse loses, my account gets credited with £600 total yes?

yes (minus any comission)

it will have been debited £500 when you laid the bet

[Blatch]

OK, almost got it now guys, so, when this horse loses, my account gets credited with £600 total yes?

Right betfair will always take your maximum loss when you place a bet and then return the money when its settled.

When you lay a 5/1 horse for £100, £500 will come out of your account and £100 from someone elses.  The event is then settled and the winner will get the £600.  

Either you win £100 or lose £500.

You then pay comission on any amount won i.e. for you it would be on the £100.  (p.s. its 5% before u ask)

[cambo]

wish so much i was mr betfair

[Blatch]

wish so much i was mr betfair

would be so nice

ex pro gambler to setting up company in loft from Uni to Queens award for Enterprise 3 years running and making Britains Rich list

MBN

[George2Loose]

who is Mr Betfair? (I'm not talking about Blatch)

[Longy]

who is Mr Betfair? (I'm not talking about Blatch)

Andrew Black and Edward Wray

http://en.wikipedia.org/wiki/Betfair

If I have ever wished I had come with an idea, betfair is the one.

[Blatch]

who is Mr Betfair? (I'm not talking about Blatch)

Andrew Black and Edward Wray

http://en.wikipedia.org/wiki/Betfair

If I have ever wished I had come with an idea, betfair is the one.

Absolute genius and so simple.

How many times previously had you had a bet with a mate down the pub and not thought "hang on, that would make a good website"

[Matt.NFFC.]

Thx for your help on this guys

Time to lose the lot
 

[bolt pp]

Ok, so, scenario 1 is this:

At 10am, I think a horse will win later today so I back it at 5/1
At 3pm, other people think this and the price is 3/1

So do I just lay it at this price for a little profit either way?

Sounds far too simple. 

Why isn't everyone doing it?

I know teams of people working in shifts in betting shops in london/boarders  where they can get a back price(or not, sometimes you dont need it) with the little machine in their hand just arbing all day, they make a lot of money.

[Swordpoker]

Fack me, now I understand hedge funds.