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What is Liquidity?

When using the typical matched betting techniques, placing lay bets is essential for the standard matched betting formulas for creating profit. Despite there being some techniques which don’t require lay bets such as dutching, lay bets are still one of the most essential components for matched bettors. Liquidity can stop lay bets in some circumstances and as a result of this, we will explain what liquidity is and how it can affect your matched betting experience. 

How Does Liquidity Work

First of all, liquidity is the amount of money available in a particular market. At a betting exchange, there will be a ‘£’ figure underneath all of the values. This is to tell you how much is available to trade on that particular market at that particular time. Liquidity is very important as it will tell you if there is enough money for you to place your bet and for it to be fully matched by the betting exchange. For players who are not sure what a betting exchange is, we discuss all the details in our betting exchange blog! 

Once you have used a matched betting calculator to work out your lay stake, you will then have to check if there is enough liquidity in the market to cover this lay stake. This is separate from your liability, which is the amount of money you need to have in your exchange account; this is the liquidity in the market instead. 

How Does Liquidity Affect Matched Betting 

The liquidity in the market needs to be the same or more than your lay stake. This means if your lay stake is £15 and there is only £10 liquidity in the market, then your bet will only partially match. If your lay stake is £15 and the liquidity in the market is £120, then this will more than cover it, and the bet should fully match. 

This makes it extremely important to check the markets before you bet on them. Usually, there is a column called ‘availability’ in the OddsMatcher or pop-up calculator that can be handy. This will tell you what liquidity is in the market. It is also useful when using the integration tool.

Where Does Liquidity Come From?

Liquidity comes from other bettors like yourself. As the betting exchange is on the lay side of the bet, this means we rely on people to place back bets to open up a trade for us to place a lay bet. For example, if three people bet £10 on Arsenal to win, this gives us £30 in liquidity on the lay side to bet against Arsenal. It is important to note that liquidity constantly changes as people place back and lay bets. If there is £150 in liquidity and you place a lay bet of £25, the liquidity will drop to £125. For players who are not fully sure what a lay bet is, we have a comprehensive lay bet guide for users to use.

It is important to note that the exchanges operate on a first come first served basis meaning people who queue to lay their bet will get priority to that liquidity. As everything happens so fast in the world of betting, make sure to refresh the page and have your bet planned out so it can be placed quickly if there is little liquidity in the market.

A quick tip is to try and stick to the high profile sporting events which will see a lot of activity from back bettors, this will help ensure liquidity is in the market. Liquidity is never guaranteed as the amount of liquidity will always change, meaning it is crucial for matched bettors to check availability before placing any bets. 

Learn More About Liquidity Here At OddsMonkey 

While learning about liquidity will only aid you in your matched betting journey, there are still plenty of other topics to broaden your knowledge of. We offer a whole host of different guides and tips here at OddsMonkey.

From our matched betting blog, to our sport specific guides like our football matched betting guide. We boast a range of different content for all types of players!

 

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About the author:

James OddsMonkey

James OddsMonkey

James' background in IT support and matched betting knowledge is how he's ended up at OddsMonkey updating offer, answering tickets and generally being super helpful.

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