Cash in bet
Cash in bet is a bookmaker’s or a betting exchange’s option allowing a punter to get the anticipatory payout with lesser odds in case the course of the match is favorable. This option allows a punter to avoid searching for the opposite outcome and calculating the amount of the hedging bet in case he or she wants to play it safe during the course of the match.
For example, if a punter placed a £100 bet on the total goals over 2.5 in a match between Barcelona and Real Madrid and one of the teams scored at 5th minute, the odds on total goals over 2,5 would be reduced and the odds on total under 2,5 goals would rise. Even though the possibility of overall total goals over 2.5 remains high, a punter may decide not to risk and secure the profit.
In this case, a punter should make a bet on the total goals under 2.5, because it’s the outcome opposite to his or her initial bet. Supposing the odds on the total goals over 2.5 before one of the teams scored were 2.00, the odds on the total goals under 2.5 became 4.00 after the goal. To cash in without a risk a punter should multiply the amount of the bet on the odds offered by the company when the bet was placed and divide by the odds on the total goals under 2.5 (in this case the odds would be 4.00).
The formula is as follows: 100*2/4 = 50. Hence, a punter will gain £50 anyway.
Now, let’s consider the case in which a punter was less fortunate – there were no goals in the match after 60 minutes of play. The possibility of the total goals under 2.5 arose, which means the odds on this outcome reduced, for example, to 1.33. The punter did not want to lose the whole amount of the bet and decided to make a bet on the opposite outcome. As the course of the game developed in an unprofitable for a punter way, he or she needed to place a bet, which is bigger, than the previous one.
The formula is the same – 100*2/1.33 = 150. Hence, a punter loses £50 anyway.
In the “cash in” option a punter does not need to make calculations: he just chooses the “cash in” option and gets his or her bet plus the gain in case the match developed according to favorable for a punter scenario, or gets a part of the bet in the opposite case.
Is this option worth using? Most likely, not. The point is that a company has its own margin in the odds and any time a punter places a bet, he or she risks more than a bookmaker. So, a punter pays the margin twice when making a bet on the opposite outcome, or “cashing in”.