Here are some explanations of the terminology used throughout the guide:
Event - A match or competition that will occur at some point in the future. The uncertainty of the outcome allows the betting exchange to offer betting markets for the event. e.g. A soccer match, a horse race, a tennis match. The event will have an advertised start time that Bet Angel can use calculate the countdown timer or schedule automation. Note: An event rarely starts exactly on time!
Market - A place where the users of the exchange can bet on the outcome of a particular aspect of the event. It contains a collection of selections which should cover every possible outcome (subject to the rules of the market). The price of each possible outcome being determined by the supply and demand of bets in the market. e.g. The winner of a horse race, the score in a football match at full-time, the winner of Wimbledon etc.
Selection - One of many possible outcomes of a market. Back bets placed on a winning selection in a market will be paid by the exchange from the money that was placed as Lay bets upon it. Likewise, Lay bets placed on a losing selection in a market will be paid by the exchange from the money that was placed as Back bets upon it. In a liquid market, a selection will have many back and lay bets on offer at various prices which are available for other exchange users to match their bets against.
Back Bet - A bet placed on a selection that will pay out if the selection is the winner (or one of the winners) of the market. The pay out will be the matched price of the bet multiplied by the stake less stake itself. If the selection is not a winner then the stake will be lost.
Lay Bet - A bet placed on a selection that will pay out if the selection is not the winner (or not one of the winners) of the market. The pay out will be the stake used when placing the bet. If the selection is a winner, then the lay bet has lost, and the loss (also known as the liability) from the bet will be the matched price of the bet multiplied by the stake less stake itself.
Matched Bet - A bet that has been placed into a market that has been successfully paired against one or more opposing bets in the market at a set price. A Back bet will be matched against one or more Lay bets on offer in the market. A Lay bet will be matched against one or more Back bets in the market.
Unmatched Bet - A bet that is currently on offer on a selection, in the market at a specific price, that is waiting for another exchange user to match against. If it does not get matched before the market is settled then it will have no impact on your Profit & Loss.
Partially Matched Bet - Some but not all of the amount staked when placing the bet has been matched. The bet reference will appear in both the Matched bets and Unmatched bets displays of Bet Angel.
Best Back Price -The highest odds of a bet currently on offer, for a specific selection in the market, that you can Back against.
Best Lay Price - The lowest odds of a bet currently on offer, for a specific selection in the market, that you can Lay against.
Current Price - If you are looking to place a back bet then the Current Price will be the Best Back Price for the selection. If you are looking to place a lay bet then the Current Price will be the Best Lay Price for the selection. In both cases you should be matched as soon as bet placement completes (assuming the price on offer doesn't change during placement).
Reverse Price - If you are looking to place a back bet then the Reverse Price will be the Best Lay Price for the selection. If you are looking to place a lay bet then the Current Price will be the Best Back Price for the selection. In both cases you will be offering you bet to the market and should expect the bet to be unmatched when bet placement completes; it will remain unmatched until another exchange user's bet is matched against it.
Trade - To have both a back and lay bet, of the same stake size, matched on a selection in the market. For the trade to be profitable, the back price must be higher than the lay price.
Open Position - One or more 'open trades' on a selection resulting in an imbalance in the amount of money staked (in terms of your matched bets) on the back side of the selection compared to the lay side.
Closed Position - All 'open trades' on a selection have been closed. The amount of money staked (in terms of your matched bets) on the back side of the selection is the same as the amount of money on the lay side.
Net Stake - The size of open position on a selection. i.e. amount of money staked (in terms of your matched bets) on the back side of the selection minus the amount of money staked on the lay side.
Net Trading Position - The profit or loss on a selection with all trades closed ( if a position is still open it is calculated as if it will be closed at the current best market price ).
Greening / Cash Out / Hedging - The process of spreading the profit or loss from trades on one selection across the rest of the market. Repeating the process for all selections will give the same P&L value for each selection regardless of which one wins the event.
Book % of a selection - Based on the selection's price, what percentage of the overall market does it represent? Calculated as 100% divided by the selection's price. e.g. A selection priced at 2.0 would be 50%. A selection priced at 5.0 would be 20%
Book % of the market - The total Book % of every selection in the market added together. e.g. In a four selection market with prices at 2.0, 4.0, 5.0 & 20.0, the individual book percentages are 50%, 25%, 20% & 5% respectively. Added together gives a Book % for the market of 100%.
Book Over-round / Under-round - A market with one winner should have a Book % of 100% if it is perfectly priced. Any amount above 100% is called the over-round. Any amount under 100% is called the under-round.
Incomplete Book - When dutching / bookmaking, bets are placed on every selection with the stakes proportioned based on their Book %. The aim being to get every bet matched to profit from the under-round / over-round in the market. An incomplete book is when some of the bets remain unmatched.
