This is a sub-article in the Betfair Cash Out pillar. The pillar covers strategies and use cases; this article is the technical "how does it actually work" deep dive.
The Big Picture
Cash Out closes an open bet by automatically placing the opposite bet. This is the same operation an experienced trader does manually — a hedge — but Betfair handles the calculation and execution in one click.
For Exchange bets specifically, the mechanic involves: (1) computing the lay stake (or back stake) needed to neutralise your existing position; (2) submitting that as a market order against current prices in the order book; (3) waiting until the order matches; (4) settling the combined position as a single number that displays as your "cashed out" return.
If you're new to the concept of hedging, read green up explained first. Cash Out is essentially auto-green-up.
The Step-by-Step
Step 1 — You have an open bet
Example: you backed £100 of a horse at 5.0. Liability if it loses: £100. Profit if it wins: £400.
Step 2 — Market prices change
The horse is now trading at 2.5 (price has shortened — your back bet is in profit if you exit now).
Step 3 — Cash Out figure displays
Betfair calculates: "if I lay £200 right now at 2.5, you'll lock in £100 either way before commission". Apply the Cash Out spread (~2-3% margin Betfair takes for convenience) and the displayed figure is approximately £92-£95.
Step 4 — You click
Betfair submits a market order matching against the current best lay prices in the order book. The match settles within 1-3 seconds.
Step 5 — Position closes
The original back bet and new lay bet are now both placed. The combined P&L is the figure you saw — locked in regardless of who wins.
Why the Spread Exists
Betfair's spread compensates them for two things: (1) execution risk — the price might move between you clicking and the order matching; (2) the convenience of the calculation — you'd have to do this manually otherwise. The spread is typically 1-3% of locked-in profit.
For Sportsbook bets (vs Exchange bets), the spread is more opaque because there's no live order book to match against — Betfair calculates the figure entirely internally. Sportsbook Cash Out spreads are usually larger.
The Live Update Loop
The Cash Out figure displayed updates roughly every 1-2 seconds. As market prices move, the locked-in figure moves with them. If a goal is scored mid-football match, your Cash Out value can swing 30-40% in seconds.
This is why the figure you click on isn't always the figure you get — there's always a small chance of slippage between display and execution. For high-volume liquid markets the slippage is typically <0.5%; for thin markets it can be 5%+.
What Happens with Multiple Bets
Cash Out aggregates all open bets on a single market. If you have a back at 5.0 and a back at 3.0 on the same horse, Cash Out closes both simultaneously and shows you the combined P&L.
"Cash Out All" closes every Cash-Out-eligible bet across all your open markets at once. Useful if you're going to sleep with positions open.
Cash Out vs Manual Green Up — Step-by-Step Comparison
1. You see your back at 5.0. Current lay price 2.5.
2. You compute: lay stake = (back stake × back odds) / lay odds = (100 × 5.0) / 2.5 = £200.
3. You place lay £200 at 2.5.
4. Lay matches. Combined P&L: +£100 either way. After 5% commission on net profit: £95.
1. Betfair calculates the same hedge using the same formula.
2. Betfair displays £92.50 (the £95 minus the ~£2.50 spread).
3. You click.
4. Betfair submits the lay £200 at the current market.
5. Settlement: £92.50 net.
So manually you'd get £95; via Cash Out you get £92.50. Difference: ~£2.50, the spread.
Why Use Cash Out Despite the Cost?
- Speed. One click vs computing + entering a lay stake.
- Mobile. The Betfair app's manual lay interface is awkward; Cash Out is a single tap.
- Sportsbook bets. No exchange option, only Cash Out.
- Multi-leg accumulators. Manual hedging across legs is impractical; Cash Out handles it.
Why Skip Cash Out for Trading?
- Volume cost. 100 trades × £2.50 spread = £250 lost to convenience.
- Calculator practice. Doing the manual hedge teaches you market structure.
- Better integration with software. Bet Angel, Geeks Toy have one-click hedge buttons that bypass the spread entirely.
Auto Cash Out
Auto Cash Out lets you set a target value: "Cash out automatically when value reaches £150". When the market reaches that figure, Betfair triggers the close without your input. Useful for sleep, work, or letting positions run hands-off with a guaranteed exit.
Limitation: Auto Cash Out only triggers when the value hits the target — it doesn't trigger on the downside. You'd need separate stop-loss handling for that, typically via dedicated trading software.
Related Reading
- Betfair Cash Out (pillar)
- Cash Out vs Green Up
- When to use Cash Out
- Partial Cash Out
- Cash Out calculator
- Green up explained
- Hedging on Betfair
- Trading calculator
Cash Out is convenience; manual green up is profit. Most casual users should default to Cash Out; serious traders should default to manual.
Read the Pillar Open Betfair Account →Frequently Asked Questions
How quickly does Cash Out execute?
1-3 seconds in liquid markets. Up to 10 seconds in thin markets where the matching order has to wait for counter-liquidity.
Why does the value change after I click?
Slippage between display and execution. The market moved before your order matched. Typically <0.5% in liquid markets.
Can I cancel a Cash Out after clicking?
No. Once submitted, Cash Out runs to completion. You can place another bet to undo the position, but the spread is already paid.
Does Cash Out work on every market?
No. Some niche markets and some BSP-only Sportsbook bets don't support it. Most major sports markets do.
Is the Cash Out figure ever higher than what I'd get manually?
Almost never. The spread is structural and consistently in Betfair's favour.
Cash Out can become a habit of closing winning positions too early. The discipline of holding to your pre-set target still applies. BeGambleAware.org if betting is causing distress.