Dutching Glossary: A–Z Betting Terms

A

Arbitrage Betting

A strategy that exploits price differences between bookmakers to guarantee profit regardless of outcome. Unlike dutching, arbitrage requires multiple bookmaker accounts and covers all possible outcomes. See our dutching vs arbitrage comparison.

American Odds

Odds format used primarily in the US. Positive numbers (+150) show profit on a $100 stake; negative numbers (−200) show stake needed to win $100. To convert to decimal: positive = (odds/100) + 1; negative = (100/|odds|) + 1.

Accumulator (Acca)

A single bet combining multiple selections. All must win for the bet to pay out. Dutching is sometimes used within acca legs to increase coverage.

B

Bankroll

The total amount of money allocated exclusively for betting. Proper bankroll management is essential for long-term profitability. See our bankroll management guide.

Betting Exchange

A platform (Betfair, Smarkets) where bettors trade against each other rather than against a bookmaker. The exchange takes commission (2–5%) on winning bets. Essential for lay dutching and arbitrage.

Bookmaker Overround

The built-in profit margin bookmakers add to odds. Calculated as the sum of implied probabilities minus 100%. A 108% overround means the bookmaker has an 8% edge. Lower overround = better value for bettors.

Bonus Abuse

Exploiting promotional offers in ways bookmakers did not intend. Dutching with bonuses is legitimate strategy; bonus abuse violates terms and can lead to account closure.

C

Commission

The fee charged by betting exchanges on net winnings. Betfair charges 2–5% depending on account activity. Commission must be factored into all exchange calculations.

Correct Score

A football betting market where you predict the exact final score (e.g., 2-1, 0-0). Popular for dutching because multiple scorelines can have value simultaneously.

Cover

In dutching, "cover" means including enough outcomes in your stake distribution so that the probability of hitting a covered outcome is acceptably high.

D

Decimal Odds

The standard odds format for dutching calculations. Represent total return per unit staked (including stake). 2.50 decimal odds = £2.50 return for every £1 staked (£1.50 profit). Most intuitive format for mathematical betting.

Dutching

A staking method where you distribute a total stake across multiple outcomes so that your profit is identical whichever selected outcome wins. Named after American gangster Dutch Schultz, who allegedly used the method. See our complete guide.

Dutching Calculator

A tool that calculates optimal stake distribution for dutching. Our free dutching calculator handles up to 5 outcomes instantly.

Drawdown

The peak-to-trough decline in your bankroll during a losing run. A 20% drawdown is normal; 50% indicates serious strategy problems.

E

Each-Way

A bet split into two parts: win and place. If your selection wins, both parts pay out. If it only places (finishes 2nd, 3rd, etc.), the place part pays at reduced odds. See our each-way dutching guide.

Edge

Your estimated advantage over the market. Positive edge means you believe the true probability is higher than the odds imply. Edge is the foundation of profitable dutching.

Expected Value (EV)

The average profit or loss you expect per bet over the long run. Calculated as (probability of winning × profit if win) − (probability of losing × stake). Positive EV is the goal of every professional bettor.

Exchange Commission

See Commission above.

F

Fixed Odds

Odds that are locked in when you place your bet. If you back a horse at 5.00 and it drifts to 8.00, you still get paid at 5.00. Most bookmaker bets are fixed odds.

Fractional Odds

Traditional UK format (e.g., 5/2, 7/4). To convert to decimal: divide first number by second and add 1. 5/2 = 3.50 decimal.

Free Bet

A promotional bet where the bookmaker provides the stake. Winnings are paid out but the stake is not returned (SNR). See our bonuses guide.

G

Gubbing

When a bookmaker restricts your account — limits stakes, removes promotions, or closes betting privileges. Common for consistent winners, arbitrage bettors, and bonus abusers. Dutching is less likely to trigger gubbing than arbitrage.

Guaranteed Stop-Loss

A spread betting feature where your position closes at exactly your specified level, even if the market gaps past it. Costs a premium but protects against extreme losses.

H

Hedging

Opening a position to offset risk from an existing bet. Dutching is a form of hedging — you hedge against picking a single wrong outcome by covering multiple outcomes.

Horse Racing Dutching

Dutching multiple horses in the same race. The most popular application of dutching due to large fields and clear value identification. See our horse racing dutching guide.

Handicap

A race where horses carry different weights to equalise their chances. Handicap races are ideal for dutching because the field is theoretically closely matched.

I

Implied Probability

The probability suggested by the odds. Calculated as 1 / decimal odds. 2.00 odds imply 50% probability; 4.00 odds imply 25%. The sum of implied probabilities across all outcomes reveals the overround.

In-Play Betting

Betting on events while they are happening. Odds fluctuate rapidly. Dutching in-play is high-risk due to odds movement between bets but can capture value as the market overreacts to events.

K

Kelly Criterion

A mathematical formula for optimal bet sizing: (bp − q) / b, where b is net odds, p is probability of winning, and q is probability of losing. Used to determine maximum safe stake. See our bankroll management guide.

L

Lay Betting

Betting that an outcome will NOT happen. You act as the bookmaker, accepting stakes from other bettors. Your profit is the backer's stake; your liability is your payout if the outcome happens. See our lay dutching guide.

Liquidity

The amount of money available to be matched at current odds on a betting exchange. Low liquidity means you cannot get your full stake matched at the advertised odds.

Long Shot

An outcome with high odds and low implied probability. Dutching typically excludes long shots to maintain profit margin, though each-way dutching on golf includes them.

M

Matched Betting

A strategy using bookmaker free bets and bonuses to generate guaranteed profit. Traditional method uses back-and-lay; advanced methods incorporate dutching. See our matched betting + dutching guide.

Multi-Bet Promotion

A bookmaker offer requiring multiple bets to qualify (e.g., "place 3 bets, get 1 free"). Dutching naturally satisfies multi-bet requirements because it involves multiple selections.

Market Maker

On betting exchanges, traders who provide liquidity by offering odds on both sides of the market. Market makers profit from the spread between back and lay odds.

O

Odds Converter

A tool that converts between decimal, fractional, and American odds formats. Essential for bettors using international bookmakers. (Tool coming soon to DutchingBet.)

Overround

The bookmaker's built-in margin, expressed as a percentage. Calculated as (sum of implied probabilities − 100%). A 105% overround means the bookmaker has a 5% theoretical edge. Exchange overrounds are typically 101–103%.

Outright Market

A market where you bet on the overall winner of a competition (league, tournament) rather than a single match. Popular for golf, tennis, and football tournaments. Ideal for dutching due to large fields.

P

Positive Expected Value (+EV)

A bet where your estimated probability of winning is higher than the implied probability of the odds. The foundation of all profitable betting. Dutching should only be used when the combined selections have +EV.

Price Drift

When odds lengthen (increase) due to lack of betting support or late news. Opposite of "steam" (odds shortening). Dutching can exploit drift by including selections whose odds have become overpriced.

Profit Extractor

The percentage of a free bet or bonus that you convert to withdrawable cash. Traditional back-and-lay extracts 75–80%; dutching can extract 85–90%.

Q

Qualifying Bet

The bet required to unlock a free bet or bonus. Qualifying bets usually lose a small amount (2–5% of stake). Dutching can reduce or eliminate qualifying losses.

Qualifying Loss

The small guaranteed loss accepted on a qualifying bet to unlock a larger free bet. Minimising qualifying losses is key to matched betting profitability.

R

Return on Investment (ROI)

Net profit divided by total amount staked, expressed as a percentage. A 5% ROI is excellent for professional bettors. Dutching typically produces lower ROI per event but higher win rates.

Risk of Ruin

The probability of losing your entire bankroll. Depends on edge, stake size, and variance. A bettor with 5% edge and 2% unit size has <1% risk of ruin; 5% unit size has ~15% risk of ruin.

Round Robin

A bet covering multiple selections in all possible combinations. Different from dutching — round robin requires all combinations to be placed separately; dutching is a single stake distribution.

S

SNR (Stake Not Returned)

A free bet where the bookmaker's stake is not returned with winnings. A £25 SNR free bet at 2.00 returns £25 profit (not £50). Most free bets are SNR. Requires adjusted dutching calculations.

Spread Betting

A derivative product where you bet per point of movement in a financial market. Losses can exceed stake. Dutching principles apply to spread betting for range-bound strategies. See our spread betting dutching guide.

Steam

When odds shorten rapidly due to heavy betting. Steam often indicates sharp money or inside information. Dutching can exploit steam by including the steaming selection before odds collapse.

Surebet

Another term for arbitrage — a guaranteed profit opportunity from odds discrepancies. See Arbitrage above.

T

True Odds

The odds that would exist in a perfectly efficient market with no bookmaker margin. True odds represent the actual probability of an outcome. Professional bettors estimate true odds and bet when market odds exceed them.

Trigger Bet

The bet required to activate a promotion or offer. Sometimes called a "qualifying bet" but can also refer to specific trigger requirements (e.g., "bet on live tennis to unlock free bet").

Tissue Price

The odds that professional bookmakers and on-course bookies forecast before market formation. Tissue prices are benchmarks for value identification.

U

Unit Staking

Betting a fixed percentage of bankroll per event (typically 1–5%). The foundation of bankroll management. In dutching, your "unit" is the total stake across all selections, not per selection.

Underround

Rare but possible — when the sum of implied probabilities is below 100%. Creates arbitrage opportunities. More common on exchanges than traditional bookmakers.

V

Value Bet

A bet where your estimated probability exceeds the implied probability of the odds. Value is the only sustainable source of betting profit. Dutching should only be applied to value selections.

Variance

The statistical dispersion of results around the expected value. High variance means large swings; low variance means consistent returns. Dutching reduces variance compared to single bets but does not eliminate it.

Virtual Sports

Computer-generated sports events with fixed RTP (return to player) percentages. Generally poor for dutching because the RTP is typically 85–90% — far worse than real sports markets.

W

Weight of Money (WOM)

On betting exchanges, the ratio of back money to lay money at current odds. Heavy WOM to one side often predicts odds movement. Useful for timing dutch entries.

Win Rate

The percentage of bets that return profit. Dutching typically produces 60–75% win rates compared to 40–50% for single selections. High win rate supports psychological discipline but does not guarantee profit.

Wisdom of Crowds

The theory that market odds reflect collective knowledge and are therefore efficient. Contrarian bettors (including dutchers) profit by finding where the crowd is wrong.

Did Not Find Your Term?

This glossary is updated quarterly. If you need a definition added, contact us via the site footer. For detailed explanations of core concepts, explore our What Is Dutching? guide, Calculator, or Dutching Method pages.