Let's say that you have placed a live bet on team India to score over 300 runs in an ODI match against Australia. Your stake is 1000 rupees and the odds are 4.0, which means that potential winnings will be 4000 rupees.
After 40 overs, India is flying at 230-1, with Virat Kohli and Rohit Sharma at the crease. There is every chance that India will score over 300 runs, and your live bet will be successful.
At this point, your betting site gives you a cashout offer worth 3000 Rupees. That's 2000 Rupees greater than your initial stake, and 1000 Rupees less than your potential winnings.
If you are feeling confident in the abilities of the Indian team, you can ignore the cashout offer and wait for the completion of the innings.
However, you can also take the cash out money and run with your profit instead of risking a spectacular batting collapse! Stranger things have happened in sports!
On the flip side, if India is struggling at 180-7 after 40 overs, their chances of reaching 300 are very slim. Thus, any cashout offer will most likely be less than your stake, say 400 Rupees.
If you believe in miracles, you can ignore the offer, but the smart thing to do would be to end the bet, cut your loss, and take what's left of your money!
Note that the cashout offer is not available at all times during the match. It is dependent on the betting site and the state of the event.
Make sure you pay great attention so that you can benefit from this wonderful feature whenever it becomes available.