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1. Not cashing out - letting the bet run.
The first and simplest option just place a bet and leave it to run.
Some Betfair traders have a real aversion to letting a bet run, regardless of whether or not it is the optimal play.
Why?
They feel that it is more like straight betting.
They are of course correct, this is straight betting but the truth is if you make more money long term letting a bet run, then why not do so?
The upsides -
You may make more profit long term
You do not have to worry about when to close the trade
You can go out for the day once the bet is placed, no emotions needed when exiting
The downsides -
You can have higher variance (losing runs with harder downswings)
You do not exit a trade and need the final result to go your way
You may not monitor the game and therefore exit if it's obvious to do so at some point

2. Cashing out for a free bet -
If you cash out for a free bet on Betfair, you are essentially putting all of your green on one outcome whilst also having zero losses on the other side of the betting market.
This is a great way to remove all of your risk and still have more upside on the outcome you think will win.
The upsides -
You remove all risk
You still win more on the outcome you originally chose
You still have the option to totally green up later on
The downsides -
You may not make as much money as your original selection may not win
Winning £0 isn't bad but it doesn't always feel great if you could have won more

3. Cashing out for a profit on all outcomes -
This is probably the most common exit strategy and it makes a lot of sense. You can walk away with a profit no matter what happens, so why not take it?
The upsides -
You win no matter what, so second guessing yourself!
It's very simple to execute this trade, just hit the cash out button.
The downsides -
You make a smaller but equal profit on all outcomes no bonus if your original pick goes onto win.

So there you have it!
The three main cashout options.
So how do you know which one to do for any given strategy?
The answer is simple.... you are going to kick yourselves!
Test them.
When you test a strategy make a note of which cashout option would have been successful.
Do this for all three outcomes and then work out which cashout strategy would have made the most money.
My advice is to follow that option!

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