With the World Cup fast approaching there are a few matched bettors out there who are a little worried about how much they have in their exchange to cover all the matched bets across all the offers that will be dropping during the world cup.
In this article I will attempt to explain “combined liability”, what it is, and how it will help you take advantage of more offers over the duration of the World Cup and any other event.
What is combined liability?
Combining liability on the exchange means you can share the liability across several lay bets in the same market, its a much more efficient way to place your lay bets and something you should consider using during the World Cup.
If you have been matched betting for a while you may have already accidentally stumbled across this but were unsure as to what was actually happening, so let me explain this to you with some simple examples.
Most matched betting markets we bet on can only have one outcome, for example, England vs Tunisia, if England win, it can’t also be a draw.
Potential outcomes of a football match
- England Wins
- Tunisia Wins
Once this market has settled, we are left with only one of the above outcomes, it can’t be a draw and a win. This sounds obvious, but by being aware of this we can help ourselves when placing lay bets.
How do we combine liability?
Laying multiple bets on the same market on the same exchange has the effect of combining your liability, for example, we could place two bets on the England vs Tunisia Game:-
- £10 on England to WIN
- £20 on a DRAW
You might think that your total liability here is £30, but you would be wrong, I might repeat myself a little here but I want to explain this really clearly.
Since both of the above lay bets are on the same market (England vs Tunisia) and since there can only ever be one outcome (Win, Draw or Lose) then your total liability is the highest of all the bets you have on that market. So, in this case, the maximum you stand to lose is £20.
If I can word this another way for a moment :
If you place multiple lay bets on different outcomes in the same market only one will ever lose
This means the amount of money you need to lay is based on the maximum potential loss only!
Meaning the maximum you can lose is the single maximum liability on a market
Using a slightly more real-world example
England vs Tunisia
- Lay £10 on ENGLAND @ 2.0 odds (£10 liability)
- Lay £10 on the DRAW @ 3.0 odds (£20 liability)
The potential loss here is NOT £10 + £20 = £30 because only one event can happen, the most you will lose is £20, by being aware of this concept alone means that you understand that you can get more lay bets into the same market which means you can take advantage of more World Cup offers on your exchange than you might think.
However, there is also a little bonus!
Since we can only have ONE outcome on this market, because the most we can lose is £20, we will also WIN £10 which means we should deduct that from the original liability meaning
£10 is the maximum liability with these combined liabilities.
This is why when you place another bet on the exchange in the same market your balance can actually increase since less money was needed in liability to cover the bets.