There are two separate situations that we will explore here. The first is the traditional ‘Cash Out’ with a bookmaker where they offer you the opportunity to close out your bet for a pre determined amount based on the current prices.
The other situation we will look at is the idea of closing out positions on the exchange. As a general rule follow this; NEVER USE THE CASH OUT FEATURE AT A BOOKMAKER. The reason is quite simple. They usually offer horrendous value and are a cash cow for bookies.
Every bet you place should have positive expected value and if not positive, at worst it should be neutral. With cash out you are placing two bets in essence. The original one and then the one to close the bet. You may get value on that first bet but almost certainly won’t on the 2nd one.
The only time it can be understandable is if you had an acca where you stood to win a large amount of money and needed maybe one more leg to win. However, you should be aware of these things when placing the original bet. You have to realise you are sacrificing big value.
Trading out of positions on exchanges follows the same principles. You should only trade out if you believe the second bet you are placing is value. There is no point just giving away the value you had gained from your first bet.
I have touched on it before but having a clear plan before placing the initial bet is crucial. However, it does come with a caveat. I would avoid at all costs placing an initial bet and then leaving another bet up on site unless you have no other option.
The reason for this is simple. Lets say you backed a golfer at 21 before the off. You decide to put a lay bet up on site at 2. What you might find is that the true price of that player winning goes from 2.2 to 1.6 as he holes a putt. Your bet at 2 gets matched. The problem is that the true price at the time is actually 1.6. You are giving away tremendous value to someone. As a general rule I have never laid off bets on Betfair as it feels like you are giving away too much value. Yes unexpected things happen but such is life.
I am fortunate though that I have the bank to deal with the swings. The only reason I would potentially do it is to reduce variance a bit and accept that I am giving away a bit of value in exchange for that.
ProPunting 