What is Cash Out and how does it work?
The 'Cash Out' feature is one of the latest features to hit the betting world. With so many companies vying for customers in a crowded market it wasn't long before it became ubiquitous with almost all major companies offering the feature today.
Cashing Out allows customers to close a bet before a match is over. This means that before the end of a match or event can cash-out your bet at adjusted odds. The amount at which you can use this function is determined by how much your bet is looking to return in terms of profit or loss, meaning it can be both higher and lower that your original wager. Cash Out might sound simple in theory but in practice it can be much harder to use, for example, should you have patience and rely on your primary analysis when you laid down the bet, or should you settle for the amount the betting company offers you?
Example: You bet on Barcelona to beat Real Madrid with odds of 13/10.
Outcome 1: Barcelona go 1-0 up in the 60th minute, which increases your chance of winning. In this case, you can either, chose to use the cash-out function for the sum the betting company is offering you, or wait until the match is over. The company will most likely offer you a higher sum of money than your original investment as you are on track to win your bet. However, the amount will be lower than the payout would have been of your original bet.
Outcome 2: Real Madrid goes 1-0 up in the 60th minute which decreases your chance of winning. You then chose to utilize the cash-out function for the amount the betting company is offering you, or wait until the match is over. The company will most likely offer you a lower amount than your original investment as you are on track to lose your bet.
When can you use cash-out?
Each betting company offer a different set of options when it comes to which markets you can use the cash-out feature in, but all of the companies do offer cash outs for both single and combined bets. This entails that if you put down a combined bet on your coupon where the matches have different kick-off times, then you could potentially close a bet before one of the matches will have begun and get back more than your original investment in return.
When can you close your bet?
If you have used the cash-out function before, you will notice that it is not always possible to close your bet. Betting sites can occasionally suspend Cash Out bets. This means that it cannot always be guaranteed that the customer has the option to cash-out. There are even cases where the cash-out function is suspended because the odds have shifted before your request to cash-out has been processed by the betting company. Most companies will inform you if they are unable to process your cash-out.
Most betting companies offer a special function where you can arrange to Cash Out automatically. If you set a sum that you would be satisfied with, then during the match if the function registers that you have reached that amount as a cash-out option, it will automatically cash-out for you. A number of companies, also give you the opportunity to close part of your bet and hold the rest of the amount until the match is finished.
Why does the value change with a cash-out?
Choosing the right time during a match to close your bet and use your cash-out option is crucial. The value in a Cash Out is constantly changing and is dependant on how likely it is that your bet leads to a profit or loss. Therefore, the value in a cash-out is decided by the current situation in a match, in the same way that odds change during live betting.
Barcelona vs PSG 2017. Barca trailed 4-0 after the first leg, but won the second game 6-1. The value of Cashing Out would have fluctuated wildly during this match.
When should you use a cash-out?
It’s not always easy to decide whether you should close your bet or not. It is hard to choose between letting your bet run as originally intended and maximise your profit or cut your losses and Cash Out. A typical scenario of when the cash-out function can be useful is when your bet is currently on to win but there is a significant risk the team you have backed will still lose, for example, if your team is down to 10-men after a red card or if the other team is pressing and creating goalscoring opportunities.
Arsenal went 1-0 up against Barcelona in the 2006 Champions League Final. But a Lehmann red card had put the game in Barcelona's favour. If you had a bet on Arsenal to win then cashing out when they were down to 10-men but 1-0 up might have been a good idea
Another situation where it can be good to use the cash-out option is when you are following a match and see that your pre-game analysis isn’t panning out how you had imagined. In these cases, it can be a good idea to minimise the risk of losing and withdraw all your money before you lose. However, we at Bookies Bonuses recommend that you stick to your original analysis as much as possible instead of relying on the cash-out function, especially if you have a strategic long term betting plan.
How the betting company determines value in a cash-out
If you look at the example above, you will see how a fair amount for a cash-out should look, The betting companies use the same method to come up with the amount they offer as a cash-out, although in the majority of cases they will reduce the amount by circa 3-5%. This means that if you use a cash-out you will not always get a fair payout for your bet. Betting companies will often use the function to earn money from customers.
Advantages with cash-out
- Get direct access to profit - If you are in need of a quick refill of your account, you can always close your bet and increase your balance. When you use the cash-out function your money will go directly into your account.
- Cash-out before you lose - Your bet might be ok for now, but if there is a big risk that things will change for the worse, for example, should your team get a red card or face an enormous amount of pressure - then this is a good time to use the function.
- Minimize your loss -If you look to have misjudged the analysis you made before the game then it might be worth cutting your loses and cashing out.
Disadvantages with cash-out
- The betting companies always offer a lower value with Cash Out. So, if you frequently use the cash-out function you will lose money.
- Wrong decision - Imagine you decide to close your bet as you don’t think your original bet can result in a win. It will hurt if it does - regret is often tougher than losing!
- Cash-out takes the fun out of your bet - Using the cash-out function can lead to punters focusing on what amounts are offered by the betting company to close the bet rather than on the game. You don’t have the same opportunity to appreciate a match, if you are continuously considering wether to close the bet or not.