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General

Liability

The maximum amount a bookmaker or a lay bettor stands to lose on a single bet. For bookmakers, liability is managed across thousands of bets. On a betting exchange, when you lay a bet, your liability is the amount you must pay the backer if they win. Understanding liability is essential for exchange betting.

Related General Terms

Juice (Vig)
The commission or fee built into the odds by the bookmaker. Also known as vigorish (vig), it represents the bookmaker's profit margin. For example, if both sides of a coin flip are priced at 1.91 instead of 2.00, the difference is the juice. Lower juice means better value for bettors.
Square
A recreational or casual bettor who tends to bet based on gut feelings, popular opinion, or fan loyalty rather than statistical analysis. Squares typically bet favorites and overs, and their action is welcomed by bookmakers. The opposite of a sharp bettor.
Margin
The percentage above 100% that the implied probabilities of all outcomes in a market add up to. A market with odds that imply 103% total probability has a 3% margin. Lower margins mean fairer odds for bettors. Also called the overround or book percentage.
Handicap
A virtual advantage or disadvantage applied to a team or player to level the playing field in a sporting event. For example, a -1.5 goal handicap means the team must win by 2 or more goals for the bet to win. Handicaps are used to create more balanced betting markets.
Edge
The advantage a bettor has over the bookmaker on a particular bet. An edge exists when the bettor's estimated probability of an outcome is higher than the implied probability of the odds offered. Finding and exploiting edges is the foundation of profitable betting.
Closing Line (CL)
The final odds offered by a bookmaker just before an event starts. The closing line is widely considered the most efficient line because it reflects all available information and market activity. Consistently beating the closing line is a strong indicator of long-term profitability.
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