Matched Betting Vocabulary
Here are some of the common terms you will need to know when Matched Betting in Australia:
Backing – Placing a back bet on an event. This is a bet that something will happen i.e. if i back Barcelona against Real Madrid this means that i think Barcelona will win
Laying – Betting that something will not happen i.e. if i lay Barcelona against Real Madrid this means that i think Barcelona will not win
Odds – Odds show the probability of an event occurring. They also show how much return we will receive if we place a bet at those odds and it wins. E.g. A bet at odds of 2.00 is likely to win 1 out of every 2 times (probability of 50%), if we bet $1 at odds of 2.00 and win we will receive $2 back.
Liquidity – This is the amount of money available for backing/laying on a betting exchange. The liquidity is displayed beneath the odds. When matched betting we want the amount of liquidity to be higher than our bet amount, if it isn’t our bet will only be partially matched and we risk losing money.
Bonus Bets – Also known as Free Bets. These are incentives given out by bookmakers to encourage people to bet with them. They come in different forms but all can be manipulated to guarantee risk-free profit
Qualifying Bets – These are bets placed in order to earn Bonus Bets. These bets usually result in a small loss, known as a qualifying loss or QL
Arbitrage – An arbitrage bet, or arb, is a back bet that can be instantly layed off at the exchange in order to guarantee a profit due to the fact that the back odds are higher than the lay odds.
Dutching – The process of betting on all possible outcomes of an event at different bookmakers. We might do this to guarantee a profit or to potentially qualify for a bonus bet or refund.
SR – This stands for Stake Returned and refers to Bonus Bets that include the Bonus Bet stake when paying out winnings. These bonuses are in the minority and usually have additional wagering requirements attached to them.
SNR – This stands for Stake Not Returned and refers to Bonus Bets that do not include the Bonus Bet stake when paying out winnings. Most bonuses in Australia are SNR. To maximise profits these should be bet at higher odds.
Value Bets – These are bets that are not risk-free but which should be profitable for the bettor in the long-term e.g. betting on a coin toss where you are given $2 every time you guess right but only lose $1 when you guess wrong.
Wagering Requirements (WR) – A condition previously attached to bonus bets that required the punter to bet a certain amount before they could withdraw. Now illegal as a result of the National Consumer Protection Framework for Online Wagering in Australia.
Liability – The amount of money that you you can lose when laying a bet at the exchange. It is calculated as stake*(lay odds – 1). When calculating how much you should lay for any matched bet it is important to check that you have enough money in your Betfair account to cover the liability. If you don’t you should find a bet at lower odds.
Float – Also know as your bank. This is the amount of money that you have for betting purposes. Your starting bank for matched betting in Australia should be at least $250, but $1000-1500 is ideal. As you progress your profits will be added to your float, allowing you to tackle even more valuable bonuses.
Underlay – A technique where we lay less than the standard amount so that we make more money if our bet wins at the bookie, and less if it wins at Betfair.
Expected Value (EV) – The EV tells us what our average return would be if we placed the same bet, or combination of bets, an infinite number of times. By only placing bets with a +EV we ensure that we come out ahead in the long-run.
Variance – Although +EV bets guarantee a long-term profit, there can be ups and downs along the way. This is known as variance.