Let’s look straight away at a simple example.
The bet is:
Bolton will beat Arsenal in their next match
The binary bet price quoted by a betting company is 20/25.
We’ll now look at the bet from the perspective of two different punters.
The Bolton supporter thinks that Bolton will beat Arsenal and so “buys” the bet at 25. (The price quoted is 20/25, which means 20 to sell and 25 to buy – one always buys at the higher price and sells at the lower price). This bet then has two possible outcomes: