Too cash out or not too cash out? That’s been one of the most common questions used over the last year or so in the betting industry. But what actually is cash out betting? Well, throughout this article we will be explaining the concept of cashing out your bet and also highlighting times when to and not to cash out.
What is cash out?
To cash out your bet basically means to settle the bet before the final result has come in. This will then allow you to lock in a guaranteed profit (or loss) on your bet and then once you’ve done this, the final result will actually be irrelevant. Let’s run through a quick example.
You place a £10 bet on Rory McIlroy to win The Masters at odds of 20/1 before the tournament starts. After 3 rounds McIlroy is leading and instead is odds of winning it all are slashed to just even money. You will now be left in a position to cash out your bet – which could have been done at any point in the bet, but now seems a good time – and the bookmaker is offering you £150 to cash out early and guarantee a win. If you decide to not cash out at this point and let the bet run through to the end, then you would win £200 if McIlroy won The Masters, but if he failed to win you would lose your stake. If you cashed out for £150 then whether McIlroy went on to win it or in fact failed to win, is irrelevant and you are £150 in profit.
Don’t forget that cash out can also be used to limit loses. So, using the same example as above, let’s say that after 3 rounds McIlroy sits right in the middle of the pack and will need a massive final round to win. The bookmaker thinks he has little chance and are offering you just £3 from your original £10 stake. Whilst this may not seem like much money, it could actually be a good way to limit your loss in what would now be an unlikely victory for your selection.
When to use cash out
The cash out feature is one that brings in a very personal decision as to whether you think the price on offer is good or not. Depending on your circumstances, you may decide that some bets are better to let run and others are better to cash out. Whilst their will always be maths involved with any odds you receive as a punter from a bookmaker, as cash out generally happens whilst an event is taking place, you’re only going to have limited time to make a decision and next to no time to properly work out any maths for your bet. This is why a lot of it is instinctive, but there are a few things that you could look out for.
Accumulator betting is one of the best markets to use cash out with, mainly because that you can see big rewards for a relatively small outlay. So, let’s say you go into the final 10 minutes of your 5-fold accumulator with all teams winning by just 1 goal. Whilst you are in great shape to win the bet, the chances of a goal in at least one of your bets to bin your acca are probably higher than you think. The cash out price in this scenario will likely be around 70-80% of the overall winnings from your bet, and in this case, it’s probably going to be best to cash out and lock in profit, rather than sweat out the last 10 minutes.
To summaries, the times that you use cash out should be when you think your bet is potentially is at it’s most vulnerable, but still winning. It’s a great way to eliminate the variance in close run bets and simply guarantee profit, rather than being greedy and going for the big win.
When not to cash out
It may sound obvious, but you really don’t want to be cashing out if you think that your bet is nailed on to win. These scenarios happen very rarely in sport, but there will be times that they occur and it’s these times that the cash out price wont reflect the true value of the bet you currently have going.
Let’s continue with the example above, except let’s say that each of our 5 teams were all leading by 3 goals or more with 10 minutes left. This would be a terrible time cash out as the likelihood of any of those teams conceding 2 or more goals to scupper your bet in just 10 minutes is very, very slim. This is a time when cashing out would be bad.
Partial cash out
The partial cash out has been a feature, which has been developed alongside cash out. The concept is that you are able to cash out part of your bet, whilst still letting some it remain. The main thing to remember with this is that you are cashing out part of your stake, and your stake is reflective of the amount of money you can win.
So, if you placed a £10 bet and the cash out price for that £10 was at £100, by cashing out half of it, you would cash out £5 of your stake, which at the this point in the bet would bag you £50. The other £5 stake is still running on your bet and this will fluctuate on with the odds of the bet as it moves forward in the cash out sector.