I am trying some lay bets and was wondering how those that lay runners work out there P.O.T

Shaun, yes it's confusing trying to look at it in reverse.

I keep it simple, your POT is your profit divided by your total investment.

So if you outlayed $1,000 overall and your balance is $1,050 after commission, you work it out at $50/$1,000 or 5% POT.

If your loss is $50, your LOT is 5%.

Trading and arbing can also be worked out this way...

Total profit divided by total back amounts plus total lay amounts

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Chromes way I feel is the simplest & is the way I prefer to do it.

The purists would argue that the true figure is the amount of Liability that you risked in trying to acquiring that profit.
e.g. Bet $10 on 100 selections all being say 10/1 shots to profit $50 at the Liability of risk being $10,000 loss if all were not successful .
10 x 100 x 10 = 10,000

Therefore POT to liability would be $50 divided by $10,000 = 0.5% POT

This looks a little frightening to me , but I guess that's another version of reality.

Cheers.

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Cheers.

So what you outlay is what you paid out on winners

Eg. lay $10 @ $4.50 and it won i would lose $35.00
The $35.00 is what i would regard as outlay

I outlay (risk) $100 by laying a 10/1 shot for $10. My profit if successful is $10 (ie. 10%) less commission.

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Pixie

"It's worth remembering that profit isn't profit until it's spent off the racecourse." -- Crash

Hi Shaun,

The Liability is the risk you took wheather it was successful or not.

Pretend you are placing the bets all at once before any have jumped.
e.g. 10 selections all at 10/1 = total Liability (Risk) before any have jumped, is 10 horses x $100 Liab each = $1000 this is the total Liability (Risk) one is pepared to take.

Multiply all your selections by their fractional odds, then add them together, to work out the liability we are talking about.

If all 10 were successful.
Prof $100 was made
$1000 Liability Risk = 10% POT
With a 100% SR.

Now if one goes against you, that wins instead of losing
Payout -$100
Incomming +$90
Loss -$10
With a 90% SR

When one looks at figures in this scary light , it does not look as attractive as win betting on face value, it's hard work.

It is often claimed by experts that its a strong idea to try & target selections priced $5.50 & less ,unfortunatly, this is where the majority of the winners are also.
It's a bit like playing tip toe through the mine field.
The idea here is if & when one gets bit , it wont take as many success to claw it back.

Lay selection plan you may wish to have a look at .
Target the bottom rated Neural selection for each race, a make one selection per venue from this lot.
Preferably no greater than 50/1

Do this for all venues on the day.
One selection per venue e.g. 8 races at that venue = 1 selection.

Divide the horses fractional price into 5% of your bank
e.g. Bank $300 at 5% = $15 this becomes your max Liability for the race.

Now divide the horse's fractional odds into this figure.
e.g. $15 divided by say 15/1 ($16.00) = O/L $1.00

This is one of the safer ways to Lay bet because it controls the Liability , that's the secret... its the Liability one gets bit at, that can kill us in the long run.

Try also Lay betting the Fav , not to run a place.
The Liability here is nice & low because they are mostly odds-on prices.
Using our betting to fractional price method.
Fav is say $1.50 not to run a place.
$15.00 divided by 0.5/1 = O/L $30
If successful +$30 profit.
If unsuccessful -$15 loss.

Cheers.

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Cheers.

I disagree that liability is an indicator, yes liability is there, but not until you pay out on it.

Reporting it this way will distort your figures immensely I think.

If I lay $50 on a 100/1 shot I report it as $50 won if it loses, and $4,950 lost if it wins, I don't count the what if's.

So it's total dollars laid versus total profit/loss, not potential liability, nor potential profit.

Your outlay isn't what you paid out on winners, it is your total investment less what you paid out on winners.

__________________
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Now with over 412,000 Metropolitan, Provincial and Country races!
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This makes the most sense to me and is how i will record it.

I don't think it makes a differance either way, you still end up with the same $$$ on the bottom line.

Personally, I prefer Chromes way as well .

We were just pointing out another way mathematical purists may view it, just for the fun of it.

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Cheers.