cashout

Cashout, also written cash-out or cash out, is a term used across finance, banking, gambling, and consumer services to describe converting a balance, asset, or potential winnings into cash that can be withdrawn or realized.

In gambling and sports betting, cash-out is a feature offered by bookmakers allowing bettors to settle a bet before the event’s conclusion. The cash-out value is dynamic, based on live odds and market conditions, and may be offered as a partial or full settlement. Terms vary by operator and market; cashouts are not guaranteed and may incur fees, minimums, or restrictions.

In personal finance, cash-out refers to withdrawing cash by redeeming or refinancing. Examples include cash-out refinancing of a mortgage to take out home equity, cash advances on credit cards or lines of credit, and withdrawing funds from bank accounts. These options typically involve higher costs, such as fees and interest, and are influenced by factors like loan-to-value, credit terms, and the purpose of the withdrawal.

In investments, cash-out means selling an asset to realize cash, such as liquidating stocks, bonds, or mutual fund shares. This can trigger transaction costs and taxes, and may expose the investor to price risk if markets move after the sale.

In loyalty programs, some programs offer a cash-out option to convert points or credits into cash, often at a rate that yields less value than redeeming for goods or services.

Usage and rules for cashout vary by context, platform, and jurisdiction.