Underlaying is a matched betting technique which can be very useful for a number of reasons. It has nothing to do with carpet........unless you want underlay for your carpet of course.
The basic principal of matched betting is that on qualifying bets you're looking for a no lose situation and therefore back and lay for the same amounts at equal odds.
Underlaying is the term used to refer to a matched bet where you do not lay your initial back bet off completely at BetFair or Smarkets, or any other exchange.
There are a number of senarios that could benefit form an underlay bet
As an example, and to show you what the result of underlaying is in practice, here's a very simple example of an underlayed matched bet:
So what does that actually mean for us in terms of our profit loss when comparing the optimal matched bet with the underlay matched bet?
Optimal Matched Bet
Underlayed Matched Bet
As with all the tools in the matched betting arsenal, it's something that can be very useful, and enhance your profits if you go the right way with it. If you're new to the game then I'd stick to the optimal matched betting lays to start with whilst you get a feel for it though. For a good few years of experience and example of underlaying in practice (and where I stole the above example from as it was quicker than thinking up my own!) check out The Gambling Times post on underlaying, when and how to do it.
The basic principal of matched betting is that on qualifying bets you're looking for a no lose situation and therefore back and lay for the same amounts at equal odds.
Underlaying is the term used to refer to a matched bet where you do not lay your initial back bet off completely at BetFair or Smarkets, or any other exchange.
There are a number of senarios that could benefit form an underlay bet
- Quite simply you might want to add some 'interest' to a bet (thought that's a step towards mugging and not really matched betting)
- To make a larger profit if an arb wins at the bookmaker (making it worth your additional time spent then working through wagering)
- To leave yourself the option of laying more of the bet off in play when the odds become more favourable (a step towards trading)
- To attempt to 'bust out' of a bonus on the first bet (therefore removing the requirement of wagering, which makes it a time /reward equation)
As an example, and to show you what the result of underlaying is in practice, here's a very simple example of an underlayed matched bet:
- Back £25 at odds of 7 at Bet365 for Brazil to win 1-0
- Lay £25 at odds of 6.6 at Betfair (factoring in the 5% commission)
So what does that actually mean for us in terms of our profit loss when comparing the optimal matched bet with the underlay matched bet?
Optimal Matched Bet
- Back £25 at odds of 7 at BookA for ManUtd to win 1-0
- Lay £26.72 at odds of 6.6 at Betfair (5% commission)
- Result is 1-0 Man Utd: +150 (back bet profit) - 149.63 (lay bet loss) = £0.37 profit
- Result is NOT 1-0 Man Utd: -25 (back bet loss) + 25.38 (lay bet profit after commission) = £0.38 profit
Underlayed Matched Bet
- Back £25 at odds of 7 at BetFred for ManUtd to win 1-0
- Lay £25 at odds of 6.6 at Betfair (5% commission)
- Result is 1-0 Man Utd: +150 (back bet profit) - 140 (lay bet loss) = £10 profit
- Result is NOT 1-0 Man Utd: -25 (back bet loss) + 23.75 (lay bet profit after commission) = £1.25 loss
As with all the tools in the matched betting arsenal, it's something that can be very useful, and enhance your profits if you go the right way with it. If you're new to the game then I'd stick to the optimal matched betting lays to start with whilst you get a feel for it though. For a good few years of experience and example of underlaying in practice (and where I stole the above example from as it was quicker than thinking up my own!) check out The Gambling Times post on underlaying, when and how to do it.