Every bet you have ever placed with a bookmaker was a back bet. You picked an outcome, the bookmaker gave you a price, and you hoped it happened. The term only needs a name because betting exchanges let you do the opposite as well.
This article explains what back betting means, how to work out what a back bet returns in each odds format, and the words you will meet when you start backing on an exchange. For the step-by-step process of placing and settling a back bet, see our guide to how back betting works.
Back Betting Meaning
To back a selection is to bet that it will happen: a team wins, a horse finishes first, a match has over 2.5 goals. If it happens, you win your stake multiplied by the odds. If it doesn’t, you lose your stake. That’s all.
Read more: Soccer Betting 101
The opposite is laying, which means betting that something will not happen. Betfair defines laying as backing something not to happen. A backer and a layer on an exchange are the two sides of the same bet.
How to Calculate a Back Bet Return
The maths depends on how the odds are written.
Decimal odds
Decimal odds include your stake. Return = stake × odds. A £10 back bet at 3.5 returns £35, which is £25 profit plus your £10 stake. Exchanges use decimal odds.
Fractional odds
Fractional odds show profit relative to stake. At 5/2 you win £5 for every £2 staked. Profit = stake × (top ÷ bottom). A £10 bet at 5/2 makes £25 profit and returns £35, the same as 3.5 in decimal.
American odds
Positive American odds show the profit on a 100 stake: +250 means a 100 bet makes 250 profit. Negative odds show how much you must stake to make 100: −200 means a 200 bet makes 100 profit.
| Decimal | Fractional | American | Profit on a 10 stake | Implied probability |
|---|---|---|---|---|
| 1.50 | 1/2 | −200 | 5 | 66.7% |
| 2.00 | 1/1 (evens) | +100 | 10 | 50.0% |
| 3.50 | 5/2 | +250 | 25 | 28.6% |
| 6.00 | 5/1 | +500 | 50 | 16.7% |
| 11.00 | 10/1 | +1000 | 100 | 9.1% |
Implied Probability: What the Price Is Telling You
Every price carries a probability. For decimal odds, implied probability = 1 ÷ odds. At 4.0 the market is saying 25%. Backing only makes sense over time when you think the real chance is higher than the price implies.
At a bookmaker, the implied probabilities of all outcomes in a market add up to more than 100%. The extra is the bookmaker’s margin. On a busy exchange market they add up to close to 100%, because there is no built-in margin, but you pay commission on winnings instead.
Back Betting Terms You Will See
- Stake: the amount you bet.
- Odds or price: what the bet pays, shown in decimal on exchanges.
- Matched: your back bet has been accepted by a layer and is live.
- Unmatched: your bet is waiting for someone to accept it at your price.
- Liquidity: how much money is available to match at each price.
- Commission: the fee an exchange takes from your net winnings in a market.
- BSP: the Betfair Starting Price, set when the event starts, which you can take instead of a fixed price.
- Drift and steam: a price lengthening (drifting) or shortening fast (steaming).
Back Betting at a Bookmaker vs on an Exchange
The bet itself is the same. What differs is the price and what you pay for it. A bookmaker’s price includes its margin. An exchange price is set by other customers and is often slightly bigger, but on Betfair you pay commission of 2%, 5% or 8% of net winnings in the UK and Ireland, depending on your package. Whether an exchange is better value depends on the size of the bookmaker’s margin compared with the commission.
Exchanges also let you ask for a better price than is available and wait for someone to accept it. A bookmaker either takes your bet at its price or doesn’t.
FAQ About Back Betting
Is back betting the same as a normal bet?
Yes. Any bet that an outcome will happen is a back bet. The term is mainly used on exchanges to tell it apart from laying.
What is the most I can lose on a back bet?
Your stake. That is the main difference from laying, where you can lose your liability.
How do I convert fractional odds to decimal?
Divide the top number by the bottom and add 1. 5/2 becomes 2.5 + 1 = 3.5.
Can I back and lay the same selection?
On an exchange, yes. Backing at one price and laying at a shorter one is how traders lock in a profit. Our article on back vs lay strategy covers when each side makes sense.
Back betting is the simplest bet there is: you win if it happens. What makes it worth understanding properly is the price. Learn to read odds as probabilities, compare them with your own view, and check what you will pay in margin or commission before you bet.
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