Back bet
Placing a bet on a selection to win.

Lay bet
Placing a bet against a selection. In other words, placing a bet on a selection to lose.

This puts you in a position of the bookmaker. If the selection wins the event, then you'll pay the backer their winnings.

Exotics bet
​When a bettor places a wager on more than one outcome.

Bookmaker
A bookmaker (also known as a "bookie") is someone that accepts bets on the outcome of an event and pays the punter if their prediction turns out to be true. The amount of money that is paid to punters is determined by the odds offered.

Betting Exchange
A betting exchange facilitates both Back and Lay bets between punters, rather than against a bookmaker. By placing bets at your own odds you act as a bookie and if you accept other odds set by other users then you act as a customer.

Favourite
The selection in a race or event that has the lowest odds. This means 'the market' thinks this selection is more likely to win than the other selections.

Roughie
The selection in a race or event that has (relatively) much higher odds. This means 'the market' thinks this selection is much less likely to win than other selections.

Firm
When the odds offered on a selection by the bookies decreases over time as the event is about to start.

For example, if the odds are $3.00 five hours before start time, and then it down to $2.00 at five minutes before start time.

Drift
When the odds offered on a selection by the bookies increases over time as the event is about to start.

For example, if the odds are $3.00 five hours before start time, and then it goes up to $4.00 at five minutes before start time.

Fixed Odds Betting
​A Fixed Odds bet allow punters to secure a given price with their bookie at the time of a placing their bet. This price will not be subject to any future fluctuations, but may be subject to deductions (see below).

Tote Betting
Best Tote will payout the greatest of the declared dividends by the three national TABs (these being VIC TAB, NSW TAB and Tatts).

Middle Tote or "Midi Div" will payout the second highest of the declared dividends by the three national TABs.

Best of the Best (BOB)
​BOB is a betting product that allows punters to secure the best price across the three totes, the Top Fluc, or the Official Starting Price. This is offered by a few of the corporate bookies in Australia.

Futures Betting
A Futures Bet is when you place a bet for an event before the final field has been announced. These markets are also referred to as "All-In" Betting. 

No refunds are given for scratchings regardless of whether or not a particular runner starts or completes the event. This means that all bets stand, no refunds are payable, and no deductions apply.

Profit on Turnover (POT)
This is your Betting Profit divided by your Betting Turnover.

Return on Investment (ROI)
This is your Betting Profit divided by the investment in your Betting Bankroll.

Implied probability
​Implied probability is a conversion of the betting odds your bookie is offering, into a percentage change of winning. 

The way to work it out is: (1/decimal odds) * 100 = implied probability

So if a bookie is offering odds of $2.00 for a horse to win, it has the implied probability of 100/2.00 = 50%.

Similarly, odds of $4.60 for a horse to win implies a probability of 100/4.60 = 21.7%.

Betting Market Percentage

The way bookmakers set their markets for a particular race or sporting event allows them to theoretically lock in profit regardless of outcome. They do this by offering a market where the sum of implied probabilities adds up to more than 100%.

Summing up the market percentage for every race/event outcome is the market percentage.

The amount by which the market percentage exceeds 100% is the bookmaker's edge on the punter.

So, the lower the market percentage, the more favourable the market is for punters; and conversely, the less profit there is for the bookies.

Scratching
​A scratching is when a horse that was entered to run in a race will not be running in that race. 

There are many reasons a horse can be scratched, such as a decision by an owner or trainer not to run.

Deductions
Deductions are an industry-wide feature of fixed odds betting, where an amount of cents per dollar bet are subtracted from a winning bet.

Dead Heat
If the Official Result is a dead heat or draw between two runners, the dividend paid for the selection will be half the odds.

The Win dividend will not be less than the bet stake.

Protest
When a Jockey, Owner, Trainer or Steward alleges interference by one party against another during a race that may have affected the outcome of a race.

If a protest is upheld by stewards, the runner that caused the interference is placed directly after the horse interfered with. If a protest is dismissed, the original result of the race stands.

Often, bookies will pay out both the winner of the protest and the first runner past the post. Please check if your bookie offers a 'protest payout'.