It can be tough to get into the hobby of sports betting without learning all of the terminology first. Different types of wagers have different names and betting strategies attached to them. With that in mind, let’s dive into what cashing out is and when it is a good time to do so.
What is Cashing Out?
Cashing out allows a sports bettor to collect a portion of their total payout while a game or event is still taking place. This amount will vary depending on what is going on. If things are trending in the wrong direction, the amount offered will be less than the original stake and vice versa. No matter what, a sports bettor that decides to cash out is voiding the rest of the wager in exchange for some guaranteed money. There is no way to reverse the decision.
While this feature is not available on every sportsbook in the country, a number of popular ones feature a cash-out option. It seems to be a growing trend and can be found on FanDuel as well as DraftKings. The amount being offered is always alongside the initial wager in the betslip tab and only takes one click of the button for the money to be transferred back into the account. All things considered, it can be smart to cash out in different situations, but not in all situations.
When is a Good Time to Cash Out?
A good time to cash out is when a bet looks doomed from the start. Yes, the cash-out option is not going to equal what you put in from the start. However, it allows you to recoup some of the expected losses before it is too late. Just watching your team or point total go down the drain can be exhausting and cashing out gives you the opportunity to turn the game off for good.
On the other side, sportsbooks will put together a generous cash-out option when it comes to bets that look great right off the bat. Although it will never be the full payout, it can get quite close. Taking the small profit hit to eliminate any risk involved is never a bad idea. Scoring droughts, big comebacks and blown leads are becoming more and more common, anyways.
Both of those rules apply when talking about future bets as well. Wagers placed on teams in the midst of a winning streak will likely increase in its cash-out amount, while wagers placed on teams failing to live up to expectations will decrease.
Some sportsbooks even offer cash-out options between the time a wager is placed and the time the specific game or event starts. Bettors that change their mind or decide to avoid betting entirely then have the opportunity to get their money back. No harm, no foul.
When it comes down to it, it’s all about confidence and situational awareness. Sports bettors that trust their research and support their wager may never cash out once over the course of their career. Meanwhile, a fan just getting started in the sports betting world may want to accept some cash-out options in order to build their bankroll.
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