Betting on a horsew to lose with betfair

[punta]

Hey guys
im fairly keen on opening up a betfair account but need some clarification on placing a bet on a horse to loose.
in the demo it says you take a horse to lose at $3.50. it then says that you put a $100. it then says your liability is $250. my question is does the liability mean if it does win do i owe whoever $250? but if it loses do i get the $250?
any help would be much appreciated
Thank you

[michaelg]

Hi, Punta.

Laying a horse means that you are being the bookie. In your case, you put up your $250 against the punter's $100. The punter naturally wants the horse to win whilst the bookie (you) wants it to lose.

If the horse does win the race, then you lose your $250 to the punter just like a bookie would, but if the horse does not win the race then you collect the punter's $100 (less the betfair charge of 5% maximum).

[BJ]

It is the exact opposite to backing them.
I would put $40 on a horse with odds of $2.50 to return me $100.
If the horse loses, I lose my $40 (to you). If I win, I win $60 (from you).

[punta]

thanks guys
that has cleared things up a bit
would the same go for sports?

[michaelg]

Yes, it also applies to sports - in fact to all types of bets on Betfair including political results, entertainment awards, American Idol, Big Brother, next pope, etc. You can be the punter or the bookie, or even both.