The Cash out (cashout) feature is available in most modern betting websites. It allows players to buyout their original bet before the market closes/event ends. You can even use cashout before the start of the match in most cases. This feature could be very useful sometimes, especially if you know how to use it properly. Well, the nature of this option fits very well for the modern betting industry, as all player has to for using it is to click on a special button.
Cash-out is an auto selling of your bet. Odds in betting terminology are often called price. So, imagine you buy 2.0 odds for 100 euros (put 100 EUR on 2.0). The price here is not 100 EUR, but 2.0 which is the equivalent of 50% probability. The event started, and odds dropped to 1.5 (66,6%). So, the price gets better: from 50% to 66.6%. And now with cash out, you can just sell your bet with a better price by just clicking on the button.
Of course, if odds become longer, then you can “sell” your ticket only with a deficit. For example, if it went from 2.0 to 3.0, then you will lose like 30% of the amount you had bet previously. So, it works both ways. The bookmakers mark the markets with an available cash-out option with special icons or signatures. Some bookies offer buyout only in live, some in Live, and in prematch. You should check in advance if you leave a room for a cashout.
The feature has many things in common with sports trading. And, unsurprisingly, it was at first presented by the biggest betting exchange Betfair. The main mission of this option was the simplification of the back/lay process to make Betfair more friendly for average bettor. As you can see, their innovation was very spot on.
The biggest advantages of this option:
The major disadvantage of cash out options is the reason for its existence. As we stated earlier, this feature simplified the back/lay process in betting exchanges. You can easily treat the bookie as the betting exchange too. Just check our example below.
Imagine, you bet 100 euros on over 2.5 goals on 2.0 odds. Team A scored the first goal at 7th minute, so odds for over 2.5 dropped to 1.5, and odds for under 2.0 increased to 2.5. According to lay/back formula, you need to put 80 euros for under 2.5 at 2.5 odds to make a guaranteed profit:
If match is over 2.5, then: 2.0 x 100 – 100 – 80 (amount on under) = 20 euros;
If match is under 2.5, then: 2.5 x 100 – 100 – 80 = 20 euros.
And you know what? In this scenario, the bookmaker will offer your profit of 15-16 euros for cashing out. So, you’ll lose 20-25% of your real profit. And bookmakers always cut the potential winnings in cash-out offers. Of course, you need to have money for insurance (lay) bet.
Some other disadvantages: can be unavailable at some parts of the match, unreliable when it comes to parlays, in dynamic In-Play markets bettors often get less by cashout compared to the initial offer. We hope our article answered all your questions and you will use cash-out wisely in the future.