Netting Explained: Reduce Commission and Free Up Liquidity

Netting is one of those "boring" exchange concepts that quietly makes you a lot of money over a year.

Not because it magically creates EV—but because it reduces the two things that kill long-term volume bettors:

• Commission drag (death by a thousand tiny cuts)
• Bound liability (your bankroll sitting locked, doing nothing)

If you've ever wondered why your exchange balance feels "stuck" even though your positions look hedged… or why commission feels higher than it should… this is the missing piece.

In this guide, I'll break down what netting is, how it cuts commission, how it frees up liquidity, and exactly how to use the Sharkbetting Netting Calculator (BFB247 Model) to quantify it for your own bets.

💡 Pro Tip: If you're doing high turnover (Stake/Gamdom style or classic arbs), netting becomes more important the bigger you scale. Start with the framework here: Volume Betting Guide.

What is netting on an exchange?

Netting means the exchange charges commission based on your net profit per outcome in a market, rather than charging commission separately on every individual winning bet.

When you have multiple lay bets on the same event, the exchange only charges commission on your net profit per outcome, not on each individual bet.

This matters most when you have multiple bets in the same 1X2 market, which is extremely common in:

• volume betting across multiple books
• arbing and re-arbing the same match
• promo stacking / reload farming
• active trading (pre-match + in-play adjustments)

Why commission feels "too high" at scale

If you're placing one back and one lay per match, commission is annoying—but manageable. When you start firing lots of bets, commission becomes a compounding tax, because you're often creating multiple "winning bet tickets" within the same match.

Here's the classic trap:

• You place several lays across different outcomes (or you hedge multiple bookmaker backs).
• In any given outcome, more than one lay bet can "win" (because any lay that isn't on the winning selection wins).
• If commission were charged per winning ticket, you'd get clipped multiple times on the same outcome.

Netting prevents that. It charges commission on the net result for that outcome (not each ticket).

Example: Commission savings with netting

Without netting (old model):

• Bet 1 wins €500 → €25 commission (5%)
• Bet 2 wins €300 → €15 commission (5%)
• Bet 3 loses -€200 → €0 commission
• Total: €40 commission on €600 profit

With netting:

• Outcome net: €500 + €300 - €200 = €600
• Commission charged once: €600 × 2.5% = €15
• Savings: €25 saved (62.5% reduction)

That's not a rounding error. That's the difference between a strategy that scales cleanly… and one that gets eaten alive by fees.

💡 Pro Tip: Commission rate matters, but netting matters more when you have many tickets per match. The calculator highlights BFB247/Orbit at 2.5% commission vs Betfair 5% with no premium charges. Learn the mechanics: BFB247 Guide. Understand hidden fee risks: Betfair Expert Fee Explained.

Netting also frees up liquidity (bound liability)

Commission savings are the obvious win. The bigger (and more underrated) win is liquidity.

When you place multiple bets within the same 1X2 market, your profit in one outcome can partially offset losses in another outcome. That means the exchange doesn't need to "hold" the full liability for every individual bet—only the worst-case net loss across outcomes.

Sharkbetting's netting calculator calls this "Bound Liability (Netting)" in the results summary.

In real life, that can turn:

• "I need €10,000 to place these hedges" into
• "I only need €1,500 bound, so I can place more bets without depositing more"

That's how netting increases bankroll velocity.

📌 Important: this is not "free money." It's capital efficiency. You're still exposed to the worst-case scenario—netting just stops your exchange from locking extra cash that's effectively redundant.

How to use the Sharkbetting Netting Calculator (step-by-step)

Open the calculator: Netting Calculator. The page tells you exactly what it's designed for: "Calculate commission savings with exchange netting for 1X2 markets."

Step 1: Enter your exchange commission

At the top, input your Exchange Commission (%). Use the number you actually pay (not what you think you pay).

⚠️ Warning: If you're on Betfair and you're not sure about premium/expert fee exposure long-term, read this before you scale: Betfair Expert Fee Explained.

Step 2: Add your exchange LAY bets (1 / X / 2)

Under "Exchange – LAY Bets (BFB247)", you'll see fields for each outcome: Lay Odds and Lay Stake (€). Fill in what you've placed (or what you plan to place).

Step 3 (optional): Add bookmaker BACK bets

There's an optional section: "Bookmaker – BACK Bets (Optional)" with the same 1 / X / 2 structure. If you're only evaluating exchange-side netting, set them to zero. The calculator explicitly says: "Set back stake/odds to 0 if you don't want to include bookmaker bets in P/L calculation."

Step 4: Read the outputs that matter

The results summary shows:

• Bound Liability (Netting)
• Commission (Before)
• Commission (After)
• Savings (%)

And a table called "Profit/Loss by Outcome" that breaks down outcome net before commission, net after commission, bookmaker impact, and total P/L.

Worked example 1: How netting cuts commission

Let's say you've got multiple positions in the same match and end up with these LAY bets:

• Lay Home @ 1.80, stake €1,000
• Lay Draw @ 4.00, stake €300
• Lay Away @ 5.00, stake €200

Commission: 2.5%

What happens if Away wins?

If Away wins, these lay bets resolve like this:

• Lay Home: wins €1,000
• Lay Draw: wins €300
• Lay Away: loses liability = (€5.00 − 1) × €200 = €800

Net profit (Away outcome) = €1,000 + €300 − €800 = €500

No netting: Commission on €1,000 = €25, on €300 = €7.50. Total = €32.50

With netting: Commission on €500 net = €12.50. Savings on one outcome: €20. Do that hundreds of times per month and you'll understand why netting is a scaling weapon.

Worked example 2: How netting frees liquidity

Using the same lays:

If Home wins: Lose (1.80 − 1) × €1,000 = €800, Win €300 + €200 = €500. Net = −€300

If Draw wins: Lose (4.00 − 1) × €300 = €900, Win €1,000 + €200 = €1,200. Net = +€300

If Away wins: Lose (5.00 − 1) × €200 = €800, Win €1,000 + €300 = €1,300. Net = +€500

Worst-case outcome is −€300. That's your true "at risk" amount across the whole market.

But without thinking in netted terms, a lot of bettors treat liability as: €800 + €900 + €800 = €2,500 tied up. That's why they "run out of exchange balance" even though their positions are logically hedged.

How netting fits into matched betting and volume betting

Netting isn't just for traders. It becomes crucial when you're doing any strategy where the same event gets hit multiple times.

Volume betting / arb stacking

If you're using an Oddsmatcher and taking multiple edges across the same match (sometimes on different outcomes), you naturally build a cluster of lays. That's where you win twice: you reduce commission leakage and you free liquidity so you can keep firing.

Start here for the full scaling blueprint: Volume Betting Guide. For execution and market context: Match View.

Why netting is less dramatic for "one back + one lay"

If you only ever place a single lay per match, you won't see huge savings. Netting becomes a big deal when your workflow looks like: many bets, same match, mixed outcomes, rapid turnover.

Common mistakes that stop you from getting netting benefits

Mistake 1: Splitting across different exchanges

Netting works within the same exchange account and market. If you spread the hedges across multiple exchanges, you lose the netting advantage.

Mistake 2: Mixing markets (1X2 vs Double Chance vs DNB)

Netting is market-specific. A 1X2 cluster nets inside 1X2. A separate Double Chance position won't net with it.

Mistake 3: Not tracking commission correctly

Many people log "profit before commission" and wonder why they're underperforming. If you're doing volume, your tracking needs to include commission (actual), netting effect, and bound liability. Use the Netting Calculator as your sanity check. Keep your standard stakes correct with the Matched Betting Calculator.

Mistake 4: Assuming netting fixes bad betting

Netting reduces friction. It does not turn a negative strategy positive. If your base edge is bad, netting just helps you lose money more efficiently.

Practical playbook: how to apply netting day-to-day

1. Cluster hedges into the same match when it's already on your radar — If you're already active on a match, adding one more edge is cheaper (commission + liquidity wise) than starting fresh on a new event.
2. Use the netting calculator before you scale stakes — Plug in a realistic "busy match" scenario: Netting Calculator.
3. Prefer liquid major markets when possible — Netting shines when you can actually get matched quickly and cleanly.
4. Choose your exchange intentionally — BFB247/Orbit's 2.5% commission and no premium charges compound hard at scale: BFB247 Guide.
5. Treat freed liquidity as a tool, not an excuse — It's not a reason to overextend or take sloppy positions.

FAQ

Does netting reduce risk?

Netting doesn't change the real worst-case outcome of your position. It reduces redundant bound liability and commission drag, which makes your bankroll more efficient.

When is netting most beneficial?

When you have multiple lay bets on the same event (especially in 1X2), because commission gets charged on the net per outcome, not every winning ticket.

Can I use the netting calculator if I only have lay bets?

Yes. The calculator includes "Bookmaker – BACK Bets (Optional)" and tells you to set back stakes/odds to 0 if you don't want to include them in total P/L.

Why does the calculator say "BFB247 Model"?

It's designed around the modern netting concept and highlights exchanges like BFB247/Orbit that use 2.5% commission and have no premium charges.

Conclusion: netting is how you scale without bleeding or stalling

If you're doing serious turnover, you're fighting two enemies: fee drag and idle bankroll. Netting tackles both.

It reduces commission by charging on net per outcome and it frees up liquidity by reducing bound liability, letting you recycle the same bankroll faster and cleaner.

Do yourself a favor: stop guessing. Open the Netting Calculator, plug in your real stakes, and see exactly how much you're leaving on the table.

And if you want more strategies like this (the stuff that actually matters at scale), you'll find the core system here:

• Volume Betting Guide
• BFB247 Exchange Guide
• Full Calculator Suite

Want feedback on your specific setup? Post a screenshot of your typical "busy match" exposure in the community: Sharkbetting Discord.