To back or to lay

[Archery1969]

Hi,

In an event with only 2 outcomes how do you work out if its better to back or to lay your selection.

Example:

- Team A is 3 to back and Team B is 1.5 to lay.

Assuming i want to back Team A, is it better to back Team A @ 3 for £100 or lay Team B @ 1.5 for £200, or does it make no difference whatsoever ?

Thanks,

[MemphisFlash]

you diversifying away from the dogs?
What team sport you got in mind,
could it be basketball or cricket?

[Archery1969]

you diversifying away from the dogs?
What team sport you got in mind,
could it be basketball or cricket?

Cricket.

Still on the dogs but simplified things a great deal. I look for the dog who has had the biggest % movement since it had £100 matched. Then at 1m 30s I begin looking for something else to happen to the selection and then bingo, so to speak.

[eightbo]

think in %s, use back & lay books / work it out yourself before betting

Team B
Best back price 1/1.49 = 67.1%
Best lay price 1/1.50 = 66.7%
Team A
Best back price 1/3.00 = 33.3%
Best lay price 1/3.05 = 32.8%

As per your example you want to back the outsider Team A so your options at current prices on offer are:
Team A Best back price 3.00 = 33.3%
Team B Best lay price 1.50 = 66.7% (1-33.3% = 66.7%)

In this case, it doesn't matter which you choose.

...But if you wanted to back Team B then your best option is to back Team B @ 1.49 as laying 3.05 would be the same as backing the fav @ odds 1.4878
Team B Best back price 1.49 = 67.1%
Team A Best lay price 3.05 = 32.8% (1-32.8% = 67.2% — 1 divided by this inverted % of 67.2 gives you the equivalent, using all decimal places gives 1.4878)

If my rough attempt was not clear enough try reading up on "tradeshark hedging" which looks at optimal greening where only 2 selections, but should be same thing you're asking.

[Archery1969]

Awesome. Thanks.