Laying off in running

[jeffers]

Now that it's possible to lay off on the exchanges if the price on your selection is shorter in running, it brings about an interesting decision that wasn't available until quite recently. Just interested to hear peoples opinions on laying off. Personally I'm not sure - of course I always lay off if I back anything over about 1.60 and it goes into 1.05 in running, it would be stupid not to. But if you can secure something like half of the profit you would have if it wins anyway, do you do it? A part of me says it's stupid to turn down free cash, but another part says you backed it in the first place, so let it ride...what are peoples thought on this? :loon

[dave]

Re: Laying off in running If you back something at 5/1, and it goes 1/2 in running, this means you are getting odds of 5/1 for a 1/2 shot, stunning value. If someone offered you 5/1 on a 1/2 shot before the event you would take it, so why lay off in running when the situation is the same? Having said that, it doesn't always go like that in practice. It really depends on the circumstances, and how much/little risk you want in your betting.