How does the commission system work?

In return for providing the facility for users to place bets with each other, a betting exchange deducts a commission charge from your profit on a market. If you have a losing bet therefore, you pay no commission. If you win, a betting exchange retains a percentage of the profit. To see what commission rate applies to a particular market, check the rules for that market.

The commission is calculated on your net profit on a particular market. Your net profit is the payout from your winning selections in a market minus:

• The relevant stake money for back bets.
• Any losses from losing back or lay bets.

For example, you back a selection to win at odds of 7.0 with a stake of £20. The commission rate defined for the market is 5%. If your selection wins, the commission you pay is £6 — £120 (profit from the back bet) x 5%. If your selection loses, you pay no commission.

If you back and lay the same selection, the commission is based on the profit from the winning bet minus the loss from the losing bet. For example, in the bet described earlier, the odds shorten to 4.0, enabling you to lock in a profit by placing a lay bet of £35. If the selection you backed wins, the commission you pay is £0.75 — (£120 minus £105 (loss from lay bet)) x 5%. If the selection you backed loses, the commission you pay is also £0.75 — (£35 (profit from lay bet) minus £20 (stake from back bet)) x 5%.

If you back multiple selections in the same market, the commission is calculated on the profit from the winning bets minus the loss from the losing bets. For example, you back both Manchester United and Liverpool in a “Top 3 Finish” Market. You stake £10 on Manchester United at 1.2 and £10 on Liverpool at 2.2. If Manchester United win and Liverpool lose, you pay no commission because your losses are greater than your winnings. If Liverpool win and Manchester United lose, the commission you pay is £0.10 — (£12 profit from the winning bet minus £10 loss from the losing bet) x 5%. If both teams win, the commission you pay is £0.70 — £12 (profit from both bets) x 5%.