A cash-out is a feature in betting that is becoming more and more popular and many bookmakers are offering it to their customers. Basically, a cash-out allows you to close your bet and get your money back with a certain profit or loss before the event is over. The amount you will be able to cash out depends on the current live odds compared to the pre-match odds that you took. Let’s take a look at a more detailed example to see how it works.
How it Works
Let’s say you have placed a bet on a match between Leicester and Manchester United in the Premier League. Your bet is that Manchester United will win and the odds you took were 2.00 before the match started. The match starts and Man Utd score one goal on 30 mins, in this case, because your bet is more likely to win, the odds for Man Utd will drop and you will be able to cash out a higher amount than your initial stake, minimizing the risk.
But let’s say Leicester score the first goal in the match – then, using the cash-out feature, you will be able to cash out an amount lower than your initial stake, ensuring you don’t lose it all (if Leicester go on to win the game).
It is actually very easy to calculate the amount yourself and respectively the profit or loss you will be offered. To help you we have created a cash-out formula.
Cash Out Formula
‘Fair’ Cash Out value = Potential winnings ÷ current odds
So if we take another example of backing Juventus to win the Italian Serie A title (outright market) with an initial 80 euro stake at odds of 5.00, we can see the potential profit is 400 euros.
If halfway through the season the odds drop by half to 2.50 and you wish to Cash Out then the fair Cash Out would be calculated as follows:
400 ÷ 2.50 = Euro 160
You may well be given a chance to Cash Out at a price of 145 euros thus missing out on a potential 15 euros extra profit, although you would still have made 65 euros profit on your initial stake.
Partial Cash Out
Some bookies allow you to take part of your stake or profit in the Cash Out option, or even just withdraw your whole stake using a slider built into the app.
This means that you can take back your stake without having to worry about taking a loss and then get a boost from what value is left in the bet at the end. The pro here is that it minimalizes losses, but the big con is that you are likely to greatly diminish your profit if your bet wins. This means that you can withdraw just a percent of your initial stake and keep the rest in play (25%, 50%, 75%).
The formula for calculating a partial cash-out offer is the same, but instead of your full stake, you put the amount you want to cash out.
(Initial bet odds / Current in-play odds) x partial bet stake) – partial bet stake)
What are the Pros and Cons of a Cash-Out?
The cash-out option gives you more control over your money and bets and allows you to assess the risk in real-time and decide whether your bet is more likely to win or lose. Of course, in some more dynamic games, you need to be very fast to react and make your decision as the odds, and respectively the possible cash-out amount might be changing very quickly.
What is the Best Cash-Out strategy?
This will be down to you as an individual, but it is always important to remember that the bookmaker is in the business to make a profit.
When to Cash Out?
Let’s take an example: FA cup matches, Plymouth Vs Liverpool. A Plymouth win has odds of 9.00, therefore if you bet 10 you will get 90 should they win.
At half-time Plymouth lead 2-1, you decide at this point, not to Cash Out at odds of 4.50 which would see you make 45 euros, but instead chose to wait. Liverpool are still losing 15 minutes into the second half and Mr. Klopp decides to bring on Mo Salah and Sane’ with the Cash Out option being at 50 euros. This would be a good time to cash out as you know it is highly unlikely that Plymouth will hold on to win the game and you will still get a nice 40 euro profit.
When Not to Cash Out?
In the same example, if Plymouth are leading by a more convincing scoreline, say 3-1, with 10 minutes to go, and then Liverpool get a man sent off this would not be worth cashing out as it is worth chancing losing a tenner for the higher chance of bagging 90 euros in winnings.
Conclusions on Cash Out Betting
If you are sensible, then Cash Out betting can make you a little profit and remove some of the stress of betting on live sporting events. The trick is to approach it with the right mentality. You will be responsible for the final decision on your betting activities but just remember, bookmakers are in it for the money and the odds reflect this.
This means if you stand to make a profit by using the Cash Out option, then it is usually best to do so when you get the chance. Overall, though, Cash Out has offered another dimension to betting that many find enjoyable, so make sure you have fun and play within your means.