On a betting exchange, you can take a position on the market and, afterwards, close the position in such a way that your profit is guaranteed regardless of the outcome of the event. Closing a position is not necessarily done to gain profit, but it can also be performed to minimize loss. Some of the betting exchanges make the so-called "cash out" option available with the click of a button, and you do not need to deal with the calculations because the software of the exchange does everything for you. However, not all exchanges offer the full functionality of that feature, and this is where this tool comes into use.
If you have taken a lay position, you are required to provide its details (lay odds and amount) as well as the back odds at which you aim to close the position. Accordingly, if you have taken a back position, you are required to provide its details and the lay odds at which you aim to close the position. In order to achieve a profit, the value of the back odds should be greater than the value of the lay odds. The calculator outputs the amount with which you have to perform the final operation in order to have one and the same return in all possible cases.
The odds in the formulas are in decimal format.
If oB>oL => R >0, and the net profit is: