A cash out or a buyout is a feature that gives bettors the option to opt out of a bet early and accept a lower payout than they would have received if the event ended. With this strategy, bettors can cut their losses if they believe their bet will result in a loss. They can also take a smaller, yet guaranteed profit before the match ends.
Why Cash Out?
A cash out is a safe alternative between salvaging some of a bet and walking away with nothing. It gives you better control of your bets, thereby increasing your chances of making early profit before an event is concluded.
If your bet is sailing smoothly, you can cash out, pocket the profit and escape any last minute setback. Likewise, if it is headed downhill you can cash out and redeem part of your stake rather than losing it all.
How Cash Out Works
The amount you get back is determined by when you placed your bet during the event. Cash out offers are dependent on the bookmaker you are using and the live betting markets.
Bookmakers analyse how an event is advancing and will shift the odds to reflect this. The cash out you receive will depend upon the updated odds.
Bookies also have the power to withdraw a cash out option while the event is still running. You should check the event often to avoid missing an opportunity.
Types of Cash Outs
There are three types of cash out bets: full cash out, partial cash out and auto cash out. We describe them briefly below.
Full cash out
Full cash out means you have ended your bet completely and have cashed out your entire stake.
Partial cash out
You can cash out a fraction of your stake, say half, and let the remainder run till the end. This guarantees you a win one way or another.
Auto cash out
You can pre-set your cash out amount so that you do not need to be logged in to accept the offer. Simply place your bet and set your automated cash out amount. If an offer matches your terms, your bet will cash out automatically.
Advantages of Cashing Out
More control over luck
Luck is an essential part of sports betting. No matter how many perfect bets you place, you will lose some.
A cash out offers you the chance to reduce the damage. If the game is sailing smoothly and your initial bet is good, you can wrap up your bet early and walk away with cash. Sure, you will lose some of your potential profit, but you will also avoid losses.
An easy betting strategy even for beginners
The cash out feature is easy to use and allows you to close the deal effortlessly. Bookies do all the necessary calculations when offering you cash outs, so all you have to do is wait for the offer and click. Beginners can also avoid losses when they make errors by accepting cash out offers.
Disadvantages of Cashing Out
You lose some profit and value
When you cash out a bet, you lose some of your potential profit. This is an unavoidable part of betting.
Cashing out too often is a bad long-term decision. You will likely lose too much value, and your long-term losses will overtake your profits. Making these decisions is an essential part of risk aversion.
Fewer promotions and bonuses
Most bonuses and promotions come with terms and conditions that you must meet. For example, in order to receive a promo, you are required to place a qualifying wager.
The majority of bookmakers don’t allow you to cash out your bets with promotional money or free bets.
When Should You Cash Out in Sports Betting?
Although we don’t encourage you to use the cash out strategy often, it’s a smart choice in some situations.
When the cash out is greater than the market price
The option to cash out the bet will rarely be more valuable than the other bookmaker’s odds. This indicates that the cash out offered has a higher value than the fair price. As a general rule, when the cash out total hits 70% of the total winnings, take the money and run!
When the stakes are high
Cashing out your bet is advisable if the bet is very high or if a bet with high odds is almost fulfilled. Here, you can take the money when an offer is made to avoid a swing in the other direction.
When you need to recoup the initial funds
At any point during an event, you have the option to cash out a futures bet, live wager, parlay or single-game bet. Before the game begins, bettors are offered the chance to cash out an equal amount to the original stake.
When the odds change after placing the original bet, the offer from the sportsbook will be less than the original one. If you feel you made a mistake, cash out before the match begins to recover the funds.
When you need to lower opportunity costs
Opportunity costs are high with long term bets and low with short term bets. If you have the opportunity to cash out a long term bet, doing so can lower the opportunity cost and unlock funds for more bets.
Hedging – The Cash Out Alternative
Hedging ensures a profit from bets on a match by exploiting the differences between various bookmakers. Future bets are more common with hedging but in-play hedging is also becoming popular.
Hedging a bet reduces risk, but there is a dark side to it – the return on your investment will be decreased. It will also increase the risk of a voided bet.
Frequently Asked Questions
Still have questions about the cash out strategy? In this section, we answer some of the common questions players ask us at Odds Scanner.
How are cash out bets calculated?
Cash out bets are calculated using the price at the time of cash out, the price at the time the bet was placed and the amount staked.
Is a cash out offer final?
Yes, once a bettor accepts a cash out, there is no going back. The wager is settled at the confirmed price.
Will I lose money if I partially cash out?
A partial cash out lets you collect part of your winnings while letting the rest of your stake ride, which means you can lock in a profit whatever the outcome.
Why is cash out not working?
Certain markets do not support cash out.