If you are just starting out Trading then you maybe curious as to how we calculate out back and Lay prices to lock in the correct amount of profit.
Well there is a simple little trick that I use
Open up the LAY tab
Enter a stake and the Liability is shown to the right. Now if you are comfortable with this then thats fine, or you can tweak the stake until you are happy.
Now before we place any bets, I like to open up the 'back' tab for the same horse and increase the price a couple of points as shown below.
I have increased the price to 8.4 and I have entered the SAME stake (£80)
Now look what this does to the P+L section next to each runner
As you can see, it says +£152 profit if it wins a £0 if it loses. Now ideally we want to be winning the same or more if the horse loses. So simply adjust your BACK stake slightly until you find the level you are happy with
Tip, always REDUCE the BACK stake to even the prices out
Here I have changed the BACK stake from £80 to £60
As you can see, Now I have changed the BACK stake to £60 the Profits have changed for each horse.
This looks much better with a £19 profit if it loses and £11.40 if it wins!
You now know your BACK price and stake to set