Horse racing bettors use different ways to make money. Lay with Limited Liability is one of the most popular advanced bettors use. This horse racing lay strategy helps bettors keep risk under control while betting against a horse. Understanding how this system works, as well as its pros and cons can help bettors understand when and how to use it better.
What is the Lay with Limited Liability Horse Racing Lay Strategy?
A very common way to bet against a horse is to use a fixed stake. This strategy is different. Instead of choosing a fixed stake, a bettor sets the maximum amount they are willing to lose. This way, they keep the risk in very steady levels, no matter the odds.
What is Liability?
Liability is the amount of money a bettor risks to lose on a lay bet. Lay bets do not show the potential profit if the bet wins. They always show the liability. They show how much money the bettor will lose if the bet does not win.
Liability is not the same as the stake. Instead, it is the possible loss if the bet goes wrong and the amount is depended on the stake and the odds. High odds increase the liability.
Example of Lay with Limited Liability
A bettor uses this strategy and decides that they can afford to risk maximum 50€ on each lay bet. They choose to lay a horse at odds of 5.0.
In order to calculate what the stake should be so that it does not exceed the liability limit, the bettors needs to use the formula
Liability / Odds – 1
So, the lay stake is 12.50€
The horse loses: The lay bet wins, and the bettor gets 12.50€ (minus 5% commission charged by the betting exchange)
The horse wins: The lay bet loses and the bettor loses 50€
Later, the bettor places another lay bet on a different horse at odds of 2.5. Again the liability limit is 50€. Using the formula the lay stake is 33.33€
The lower odds have permitted for a bigger stake keeping the liability limit steady.
The horse loses: The lay bet wins, and the bettor gets 33.33€ (minus 5% commission charged by the betting exchange)
The horse wins: The lay bet loses and the bettor loses 50€
The total possible loss if both bets lose is 50€ + 50€ = 100€
Comparing Lay with Limited Liability with Lay with Fixed Stake
The bettor decides to place the same lay bets with the fixed stake approach. They will place a fixed stake of 20€ no matter the odds.
They place the first lay bet, and they lay a horse at 5.0 odds with a 20€ stake. The liability from this bet is 80€.
The horse loses: The lay bet wins and the bettor gets 20€ (minus 5% commission charged by the betting exchange).
The horse wins: The lay bet loses and the bettor loses 80€.
For the second bet, they lay a horse at 2.5 odds with the same fixed 20€ stake. The liability from this bet is 30€.
Lower odds mean lower liability. Higher odds mean higher liability as it is clear from both bets above.
The horse loses: The lay bet wins and the bettor gets 20€ (minus 5% commission charged by the betting exchange).
The horse wins: The lay bet loses and the bettors loses 30€.
The total possible loss if both bets lose is 80€ + 30€ = 110€
The horse racing lay strategy with the limited liability approach has yielded a little higher profit and less risk than the fixed stake approach.
Why Laying Horses with Limited Liability is Better
Using this horse racing lay strategy, the risk is always controlled. No matter the odds, the maximum possible loss stays the same. In the example above, with the fixed stake approach, the total loss was 110€. With the limited liability approach the total loss was 100€. This may seem a small difference, but it can have a big impact over many bets and it protects the budget of a bettor significantly, allowing for more controlled betting.
In Conclusion
The lay with limited liability strategy is one of the most advanced betting methods used by most experienced and professional horse racing bettors. It is very good for managing risks and yielding steady profits. Like every horse racing lay strategy, it requires research and discipline. If used correctly, it can be a powerful tool for long-term betting success.