- Instantly see your profit and loss
- Work out your P&L before placing bets
- Set orders to lock in a profit
One of the biggest advantages of using a betting exchange is the ability to easily trade out of bets and lock in a profit without losing out on any value and with maximum flexibility. Forget cash out, this is the smart way to safeguard your profit in-play. And now Matchbook has made this even easier to do with the launch of dynamic P&L on all markets.
Dynamic P&L is a visual representation of your potential profit and loss on a market, which updates with every bet or trade you make. You can instantly see how any action changes your profit expectation before placing a back or lay and it allows you to adjust your staking to maximise your profit (or minimise your loss).
While you can cash out of sportsbook bets you usually pay a small price for doing so and you don’t have the flexibility or control a betting exchange gives you. Being able to back and lay any selection allows you to trade out for a guaranteed profit, cash out your initial stake or simply reduce your risk. And with dynamic P&L it’s easier than ever to do so.
How to use dynamic P&L to cash out
Reading your own dynamic P&L is simple: profit is shown in green and loss is shown in red. For traders your ultimate aim is to turn everything green and get yourself a “green book”. This is exactly the same as “cashing out” at a traditional bookmaker, but here you are not paying an additional margin to the bookmaker for the privilege.
Let’s look at a Premier League game between Chelsea and Spurs as an example. You back the over 2.5 goals market at 2.0 pre-match for a stake of £200. During the second half the score is 1-1 and the odds on over 2.5 have dropped to 1.7. Here you can click to lay over 2.5 and start adjusting stake amounts to see how this effects your dynamic P&L.
Putting in a stake of £100 change our potential profit on over 2.5 to £30.07 and means we don’t lose anything if the score remains 1-1. But adjusting the stake amount we can see that a lay stake of £117.5 will give us a profit of around £17.50 no matter what the result. You can use simple online calculators to work out the exact number for optimal hedging on bets such as this one here if you want to make sure you win the maximum whatever happens.
Changing your risk and reward
But the beauty of dynamic P&L is it allows you to work out your own profit and loss scenarios and your own risk and reward. To understand what that means let’s give a quick example. Here you place a pre-match bet of £100 on Chelsea to win at 2.37 so you stand to make £137 profit if Chelsea win and lose £100 if it’s a draw or Spurs win.
During the game Chelsea go in front and their odds drop to 1.25 with the draw now out to 7.0. You don’t think Spurs can come back into it, but you want to hedge against the draw. With dynamic P&L this is now super easy for you to take control of your bet.
You can simply place a small bet of £25 on the draw at 7.0 or you can lay £25 on Chelsea and use that to back the draw at 7.0 to give you a win of £105 if Chelsea win, £75 if it’s a draw or a loss of £100 if Spurs come back.
And you can vary those amounts however you like. With dynamic P&L you can see exactly what your risk and reward is before you place your bets.
Setting an order for profit
Dynamic P&L makes it easy to simply set up an order (a bet to be placed at odds currently unavailable) so you don’t miss out on a chance to cash out a profit. By simply putting up a future order you can see exactly what your potential profit will be and adjust the values until you find a point you would be happy to trade out at.
Using the examples above you could place your pre-match over 2.5 bet on Chelsea and place an offer for the lay bet at 1.7 before play begins. If the price reaches that point the lay bet will be placed and you’ve locked in a profit. Placing an order also has the benefit of meaning you pay even less commission at Matchbook, and you can read more about that here.
You can use posted offers when you’re not going to be able to trade the game live, or just when you’re worried the market might move quickly and you want to capture a certain price as soon as it’s available. But remember they can work against you, and you might feel a bit daft having traded out at 1.7 in a game where it was 2-0 after 10 minutes.
Trade and cash out how you want to
But whatever you use it for there are thousands of other ways you can utilise dynamic P&L to add to your betting. Betting exchanges like Matchbook are all about placing you in control and dynamic P&L is just another way of improving your betting and putting you, the bettor, and not the bookie in the driving seat.
There are a million variations on this and the key is to experiment with different staking amounts to find out the numbers that work for you. Try it out for yourself and get a feel for how it can help you make smarter and more profitable decisions when betting.