What is combined liabilities?
Combined liabilities is a way of making your matched betting both, more profitable and more efficient. It enables your cash flow to be used more efficiently so more offers can be completed in parallel as well as making each offer more profitable.
How does combined liability work?
Most markets can only have 1 winner, if you’re betting on a football match it can’t be both a Draw AND a win for one of the teams.
The exchanges are aware of this and have factored this into their potential liability calculations. When you lay multiple bets on the same market at one exchange you can take advantage of the effect this has on your liability.
The amount of money you need to lay a bet is based on your maximum potential loss, therefore if you lay 2 different results on a market that can only have 1 outcome only 1 of them can ever lose. This means that the most you can lose is whichever selection has the larger liability. The liability on the selection with lower liability is ignored for the purposes of calculating how much money you need to lay the bet.
Let’s use an example
Lets say for instance you lay Home and Draw on a football match and have £100 liability on Home result and £200 liability on draw.
Your overall risk is not £100 + £200 = £300, it’s actually only £200, because only 1 event can lose.
By using this approach you can make your cash go further enabling you to do more offers at the same time.
Wait, liabilities are combined even further…
We can take this a step further though, if you lose your maximum amount i.e. £200 you will also have won the Home lay bet, this is also offset against your total exposure to further reduce your maximum exposure.
Lets go back to the previous example and assume the odds were 2.0 on Home and 3.0 on Draw and that for our lay bets we bet £100 on each.
£100 lay on home at 2.0 = £100 liability
£100 lay on draw at 3.0 = £200 liability
We’ve already discussed how our maximum liability is the higher of these 2 results, now we need to think about what actually happens if the match ends in a draw.
If the match ends in a draw we lose the draw lay bet (-£200 at the exchange).
W also win the home lay bet (+£100 at the exchange)
Therefore if the match ends in a draw we only lose £100 at the exchange.
So we’ve combined 2 liabilities of £200 and £100 to generate an overall liability of £100.
Placing the 2nd bet actually meant less moneyy was needed at the exchange to lay all outcomes.
You can clearly see how combining liabilities makes excellent use of your exchange balances enabling lots of offers to be completed at the same time with a limited exchange balance.
When can I combine liabilities?
You can use this approach on any event which can only have 1 outcome but my personal preference is to use it on events that have high odds like the outright markets (i.e who will win the world cup) and the correct score markets. In this way I can combine commission on multiple SNR bets at high odds without tieing up all my cash at the exchange,
Are there other advantages?
Check out our post here to learn about how this approach can actually make each bet more profitable as well as making better use of your cashflow
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