Matched Betting - The MB 2-Step

Step 1

Place our first £25 bet without risking losing it

In Step 1 you place a pair of bets with your own money.

One at the Bookie (a BACK bet) and at the same time one at the Exchange (a LAY bet). 

The BACK bet is betting that something will happen and the LAY bet is betting that the same something will not happen.
It is because the Exchange allows you to be the bookie that you can bet that something will not happen.

Because you've done both bets - bet that it will happen and bet that it won't happen - they will cancel each other out.
 
If the thing you bet on at the Bookies happens then you'll win at the Bookies but you'll lose at the Exchange.  If the thing you bet on does not happen then you'll lose at the Bookie but you'll win at the exchange. 

By doing two bets that cancel each other out you'll have just “placed your first £25 bet without risking losing it”!
 
In MB speak this is called your “qualifying bet” because it qualifies you to get the free bet.

Step 2

Place the free £25 bet so you're guaranteed to win

When the bookie has given you the free bet you do Step 2. 

Step 2 is simply a repeat of Step 1. 

You do a pair of bets - one BACK and one LAY - betting at the Bookie that something will happen and betting at the Exchange that the same something will not happen.

But this time the two bets do not cancel each other out. This is because you're using the free bet at the Bookie and not your own money.

Lets Have A Look At A Worked Example ...