Trading out Odds/profit correlation

The sport of kings.
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BigJ
Posts: 125
Joined: Fri Jun 23, 2017 10:33 am

H

Apologies if this is a silly question.

If I back a horse with odds of 10.0 @ £100 (£900 potential profit) and green up at 3.0 will I get 70% of the profit?

If not can someone explain the correlation between odds and profit please?

Thanks
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Derek27
Posts: 23636
Joined: Wed Aug 30, 2017 11:44 am
Location: UK

The payout of the back bet is £1000 (£100 * 10.0) so the lay bet would be £1000 / 3.0 =£333.33.

If the horse wins you win £900 - £666.67 = £233.33.

If it loses you win £333.33 - £100 = £233.33.

The profit fraction of a back to lay is simply back price / lay price - 1, in this case, 10 / 3 - 1 = 2.33 or 233%.
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