I have some questions about lay betting on horse racing.

[God.]

I've been studying sites on the internet that explain lay bets on horse racing. I've spent a week intensely doing this and guess what? I'm now more confused than ever about lay betting. There's heaps of contradictions, heaps of different ways that explain what's "supposed" to be the same thing, heaps of disagreements, explanations that result in way more questions than definitive answers etc etc etc. It's never ending.

Please, please, please ---- is there anyone here who can answer my following questions with definitive clarity? Thank you.

Here's a scenario: I went to the Betfair website and filled out a "lay bet" slip.  On the betting slip I need to fill out Backer's odds and Backer's stake, and I can list whatever odds and stake I want to list. So I list Backer's odds at 4 and Backer's stake at $65. Then next to this Betfair automatically lists the payout at $260 and the liability at $195.

Here's my interpretation regarding what this means: I think the word "Backer's" in this scenario refers to the person who eventually matches my lay bet with a back bet by accepting these odds of 4, and the stake of $65. Is this correct? This would mean that if the horse I'm backing to lose comes first then that other person's back bet would receive a total payout of $260 (4 x $65). So he bet $65  and for his win received back his $65 stake  plus his $195 profit, for a total of $260. Betfair then takes out its 5% commission.

My lay bet loses because the horse came first in the race, so I then have $195 taken out of my account to pay for the back better's $195 profit. 

Can anyone, who definitely knows, please tell me if I have got these figures and explanations correct?

Thanks.

[harry_rag]

17 minutes ago, Lubi said:

Here's my interpretation regarding what this means: I think the word "Backer's" in this scenario refers to the person who eventually matches my lay bet with a back bet by accepting these odds of 4, and the stake of $65. Is this correct? This would mean that if the horse I'm backing to lose comes first then that other person's back bet would receive a total payout of $260 (4 x $65). So he bet $65  and for his win received back his $65 stake  plus his $195 profit, for a total of $260. Betfair then takes out its 5% commission.

If you lay £65 at 4 your potential liability is £195 and your potential profit is £65 less commission.

The backer's liability is his £65 stake and his profit would be £195 less commission.

Depending on the outcome either you pay commission on your £65 or the backer pays it on his £195.

When the bets are placed your available balance will reduce by your potential liability of £195 and the backer's by £65. After settlement the loser's balance stays the same (the stake is lost) or increases by the stake plus the winnings less commission. So, effectively, the winner gets their stake back plus their net winnings.