Let's say that you were to place a bet on FC Real Madrid to win a football match. Such bet will profit if Madrid beats their oponent, but it will lose moneyif the team does not win. However, if you also visit a betting exchange such as Betfair and place a lay bet on Real Madrid, the lay bet will win if Madrid fails to beat their opponent, but it will lose if Madrid wins. These bets, if placed at the same time, will nullify each other, rendering a non-loss situation.
