Compound interest

? Offline

Just watched the video on compound interest, and just want to be clear that staking on a lay bet means it's the liability you're risking not the actual stake amount? so with a bank of £100 if you placed a lay bet stake of £100 but your liability was £10 this would be the max trade working on 10% ? and I presume you complete that trade before moving to another because it's your maximum stake?

? Offline

Many thanks for clearing that up much appreciated.

Martin

@gary-fisher no the rest of your bankroll would not be tied up as you are only risking £10 so you would still have £90 available to trade with until the trade was completed.

? Offline

Thats right, your liability is your risk. So for a back bet its your stake, for a lay bet its the liability. You dont necessarily have to complete the first trade before moving to the next although the figures wont be dead on 10% because the first result is unknown but i wouldnt suggest staking like that anyway as its completely inconsistent

10% of your bank is an awful lot to risk on one trade if thats what you meant in your example.