I am trying to under stand this, say i lay a runner for $100@$4.00 and i then try to back it at say $4.20 but the price firms in to $3.80 this would leave me with a $20.00 loss if i backed it.

Can you show me an example of how to get out of this.


P.S. Never mind i think i worked it out, it reduces your loss by about 25%

P.S.S Would i be correct in saying if i had the back first and couldn't get the lay that i would dutch back all the other runners.