How does the betting insurance work?

[ 24.07.18 ]

How does the betting insurance work?

Most people tend to think, that in the world of bets the chance success is the only “constant”. Well, on a global scale, it is really so, but as you know, details can make all the difference. So, if you take sport bets for example, each player can keep more options open by taking out an insurance on his bets to partially cover risks. And this is when cash out services may come in handy.

The SYSTEM and its IDEA

So, what is a cash out and how does this system work? By using such option as “cash out”, you can withdraw your bet before the outcome of the draw game is clear. Well, this is a very reasonable measure, especially if the team you’ve made your bet on is losing during the match. So, if you decide to withdraw your bet, most of the money can be saved.

Any bet is a sort of investment, and this where initially the “cash out” practice came from to the gambling industry – investment business. Cash out is very similar to insurance, and, one must note, it’s a very reasonable hedge. Well, you cannot but agree that every activity has its own risks, especially gambling. That’s why, those players, who know no carelessness but prefer prudence, won’t lose big in any case.

Initially, such option as cash out was applied at stock exchange only, but this innovative idea soon found its audience and quickly grew in popularity. Very soon ordinary bookmaker’s offices started offering their clients an opportunity to withdraw money in advance. Now cash out is available not only for pre-match betting but to LIVE as well.

WORK CONCEPT and CALCULATIONS

First and foremost, you need to understand that cash out is available right after the bet is made but only until the bet results are announced. Of course, you cannot get all the money back, but the betting system recalculate your bet so that the loss is minimum.

For example, here’s a player who is anticipating for a football match and makes a bet on one of the teams, with a 2,0 handicap. So, the player choses to bet 100$. But during the game, the situation changes and the outcome doesn’t look good at all: the team 1 seems to be losing. Meanwhile the bet rate for the victory of team 2 reaches 2,5. The player can just wait for the results and think: “Next time lucky” or can take possession over the situation and place a request for cash out. The sum you can actually withdraw is calculated as the following: the initial rate is divided by the current rate minus 10%.

(2,0 : 2,5 x 100) – 10% = (0,8 x 100) – 10% = 80 – 10% = 72.

Thus, you can basically withdraw 72$ out of $100 instead of 0 if in the case with no cash out. What’s important, the key factor is the time when you ask for cash out. Thus, in the beginning of a game you can save more rather than in the end.

The other side of the coin

The winning index of the team that you picked can not only increase but also decrease. For example, you can analyze the potentially equal game between team 1 and team 2. A user picked team 2 with 3.0 index. After the start of the game team 1 is winning but concedes one goal. So, the chances for the second team to win grow and its index respectively falls. Let’s assume that it reaches 1.5 point. That’d be okay if not for the possibility for the opponent to become more intense and to get a draw. That is why the bird in the hand is better and here’s where a cash-out can help you. In such a case, the user is a priori winning and he don’t have to wait his for his fate. That is how the calculation looks like (hypothetical bet is 100 dollars):

(3 : 1,5 x 100) – 10% = (2 x 100) – 10% = 200 – 10% = 180.

Now you can see that in such case using cash-out is reasonable, because you win. Even you get not that much, the situation won’t be so risky and you are protected from fails regardless of what is happening in the game.

Express bets

If you are playing with express bets, making cash-out is also a thing and it is even more effective than in ordinary betting. For example, if you want to place a bet on three games at a time, you can pick three favorites with indexes 2.5 for the first, 2.0 for the second and 1.5 for the third favorite. If we take the same bet of 100 dollars, you can win 750 dollars. You can find out this sum with the common formula for calculating express bets: (2,5 x 2 x 1,5) x 100 = 7,5 x 100 = 750.

It is an intriguing prospect, but the victory of all the three teams is a big luck. If you take a look at the situation along the matches, you will understand, that it will very reasonable to use cash outs. So, if the first two games turn out well and hand you a victory, it is already a half of the battle. Especially, on the analogy: the index of the third is lower than others and is generally quite poor. Is it worth the cost? You don’t have to take a risk one more time and you can cash-out after two games. This formula can help you to calculate your win:

((2,5 x 2 x 1,5) : 1,5 x 100) – 20% = (7,5 : 1,5 x 100) – 20% = (5 x 100) – 20% = 500 – 20% = 400.

Taking into the account the poor possibility of the third team’s victory, the cash-out is fully justified.

Let’s go into some details

In these three examples of how cash-out can be useful, you can see that a certain percent will be lost in any case. You might think that it’s a kind of commission. In this case all the numbers are average and relative. Depending on bookmaker’s office and it’s conditions these numbers range. But the whole principle is vivid: the commission percent corresponds to the possible result and the number can be very different. Plus, live coefficient is always different depending on what happens in the game during cash-out. You should keep all these details in mind, because if you will catch the right moment, you can influence the sum of cash-out for your own benefit.