Cash out

[Hesi]

How does this work on the NZ TAB

Have noted, that they usually offer you 95% back straight after you have placed the bet, and this is still offered for quite a while, until closer to race start, then it  gets smaller, but never larger

I can understand them offering a lot lower cash out if the price drifts, as at 95%, you might as well cash out and re-invest at the higher price

If the price tightens, then should they not be offering you a lot higher cash out to tempt you

Take Suliman for example, opened at 21, closed at about 9.  If you took it at 21, then should they not be trying to tempt you off the bet, by offering a higher cash out

 

[mardigras]

Might depend on where they see their overall liability.

If the horse was 21 and now 9, but overall they still are winning on the market with that result, then they may prefer to retain the bet than offer an incentive to cash out. Paying out on that reduces what is able to be offset from a bet where they hold a large overall liability - effectively increasing their liability on that higher risk option. 

Probably another advantage with an exchange. You place a bet, you can then do with that as you please in regards cashing it out based on what is happening on the market. It isn't subjected to whatever the operator you took the bet with wants to do. You can cash it out with another 'punter/operator'.

i.e.

put $100 on at 21. Now 9. You could cash out 50 at say 9, leaving you a $50 bet (risk) at effective odds of 32-1.

put $100 on at 21. Now 9. You could cash out 100 at say 9, leaving you a $0 bet (risk) to win $1200 

put $100 on at 21. Now 9. You could cash out 233 at say 9, leaving you $133 profit (no risk) whatever happens 

It's what traders to on the exchange - try to wager on price movements occurring to their advantage.

If you thought a  horse was a 10% chance, you could back it at odds greater than $12 and lay it at odds less than $8. (backing when in your favour, laying when also in your favour) - treating the bets as individual bets based on chance. Long term, if your chance assessment is correct, you would win off both 'sets' of bets overall, the backing set, and the laying set.