What is cash out betting? A guide to cashing out

Cashing out lets a punter settle a bet for a set amount before the event is finished, rather than waiting for the result and the wager to settle in full. This doesn’t necessarily have to be for a profit, with cash out tools on betting sites allowing bettors to cash out to limit their losses as well.This page covers what cash out actually means in betting and explains the differences between three sports betting terms: full cash out, partial cash out and auto cash out. We also debate whether cashing out a bet is ever the right choice.Read MoreWhat does cash out mean in betting?In live betting, odds change, and the cash out function allows bettors to take a profit or cut their losses at any stage of the event based on the current in-running prices. As well as offering the punter the ability to lock in a profit, cash out betting sites also allow bettors to minimise their losses.The cash out value of the bet updates constantly as the event unfolds and the betting odds move, so the figure on screen can change. When deciding whether a cash-out is worth it, it’s also important to note that bookmakers typically take a commission.An example of when a player could use the cash out function is after placing a pre-match football wager and seeing their team go a goal ahead later on in the game. The cash-out value will climb steeply the more likely a bet is to win. Bettors can also use partial cash out. For example, cash out initial stakes and let the bet ride for a freebie.Full cash out, partial cash out and auto cash outThere are three main types of cash out punters should be familiar with when learning how to bet on sports. Here’s how all three cash out variations work:Full cash out in betting is when a bettor can choose to settle the bet then and there for the cash out amount offered by a bookmaker. Full cash out can be used in a wide variety of bets, from wagers on individual matches to season-long outright bets.Partial cash out is when a bettor takes back a percentage of the stake or cash out value and leaves the rest to run on the original bet. This can lessen volatility while still leaving the punter to sweat their original bet somewhat.Auto cash out is a pre-set figure determined by the bettor. If and when the cash out figure hits a set amount, it triggers an automated cash out, so there is no need to watch and cash out manually. This type of cash out or trade is often done on betting exchanges.How is the cash out price worked out?The cash out value is based on the price of the selection and the probability of it changing. There’s also a bookmaker margin implemented into the cash out value as a type of charge or commission on the service. As betting strategies go, experienced bettors recommend against cashing out, but it is all relative to the bettor’s own style, especially if there is a large amount of money on the line.The value of cash out prices can move or briefly be suspended during key events like a goal, a big point, a red card, or say if a leading golfer hits a shot really tight to the pin. After things settle, the bookmaker's trading system or manual traders update the odds. This is why bookmakers differ in how quickly cash out is available again after a major event happens. They can’t leave themselves open to exploitation.Is cash out worth it?Cash out is a convenience, but it comes at a price. It is not a fair-value trade because the offer is typically priced below the bet's true value based on the probabilities of the bet coming in.In terms of how bookmakers work when it comes to cashing out, they calculate the bet's current win chance and tally it against the expected payout should the bet win. The cash out feature then offers a figure built from that, minus its own margin - so a bettor whose bet is genuinely worth, say, 80 per cent of full value will typically see an offer closer to 70-75 per cent of it. For example, if a player places a £10 bet on a team to win at 4/1 on and the bet has a 50 per cent chance of winning at some point during the match, it would be fair to assume the value of the bettor’s wager stands at £25 (including stake). The cash out function on some online football betting sites might offer £15 after discounting the bookmaker commission.The cash-out dynamic is discussed more and becomes more interesting with bigger bets and potentially bigger wins involved. This is especially true in multiples, where a bettor might be waiting for one leg of a fourfold bet to come in for a big win. Would you take a guaranteed £100k from cashing out or let the bet ride, potentially winning £1m or nothing? That‘s the dilemma!It is all about the trade-off then. Will the bettor be happy to give up a bit of value to secure a large win? Or does he or she let it play out to try and lock in the true value of the bet? Again, it all comes down to personal preference. The cash out function can be a great tool for bettors looking at potentially life-altering amounts of money.In summary, cash out is best used deliberately as a risk management and variance control tool (locking in a win you're happy with, or limiting a loss) rather than a standard practice, since cashing out every time mathematically costs more over several bets than letting results play out. Read MoreResponsible gamblingThe Standard recommends gambling responsibly by sticking to a budget, and treating cash out as a way to manage risk rather than chase losses. There are responsible and safer gambling tools built into all cash out-enabled betting sites nowadays, such as deposit limits, time-outs and reality checks. Always check the safer gambling areas of cash out betting sites for advice and gambling help resources if concerned about gambling activity. Gambling help resources include:GambleAware (gambleaware.org)GamCare (gamcare.org.uk)Gamblers Anonymous (gamblersanonymous.org.uk)NHS (nhs.uk)Cash out betting - frequently asked questionsWhat does cash out mean in betting?Cash out in betting means taking the current value of the bet (less bookmaker commission) while it is live in play to lock in a profit or minimise your losses.How is cash out calculated?Cash out value is calculated based on the live win probability of the bet, less bookmaker margin. The value can move or suspend around major in-game moments.