Exchange Betting

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1. Choose the Best Betting Exchange
2. Exchanges and Bookmakers
3. Back and Lay Odds
4. Controversies

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What is Exchange Betting?

Betting exchanges allow customers to bet on almost anything you can find at a traditional bookie. Sports, politics, and other events are all available in betting exchanges with one key difference – the betting takes place without the bookmaker. Two bettors can back and lay odds against each other with the operator only charging a small commission fee.

The best thing about exchange betting is that the platform offers better value. Bookmakers make their odds with profit in mind that can sometimes go as high as 20%. It’s understandable – after all, they’re in the business to make a profit. However, they price the markets in their favor at unfair odds. This is where exchange betting comes in.

By putting two bettors against each other, the odds are definitely better. By cutting out the middleman, the 20% (or more) commission is all but non-existent, which means more money to be made. This is why betting exchanges are so popular right now, and will definitely continue their march forward in the future.

How to Choose the Best Betting Exchange?

As the expansion of the internet continues every minute, there are literally thousands of sites being launched every day. This means that there will be more than a few fraudulent sites including sports betting operators. In order to avoid any possible problems, you need to check the site’s reputation and examine every detail that interests you. This includes customer support, payments, and the technology behind the site.

The good thing about betting exchanges is that there aren’t that many of them. The biggest exchanges right now are Betfair, BETDAQ, Smarkets, and Matchbook, and we recommend sticking to them. See what suits you best when picking an exchange – some have a larger, while others have a smaller commission fee. Of course, you’d want to pick the one with the smallest commission percentage and the best odds. Trying other betting exchanges is perfectly fine as long as everything checks out. Be very careful about the licenses as well – if an exchange isn’t licensed, you should stay away from it.

As you can see, betting exchanges have numerous advantages over bookmakers. Although there aren’t that many on the market, they offer a more exciting way of betting and much better value. Additionally, you can also trade positions by placing back and lay bets in the same market, which will ensure that you make a profit either way the match ends.

Exchanges and Bookmakers

Although they are similar up to a point, there are many differences between betting exchanges and bookmakers. The key difference lies in the odds. While bookies make their own odds and lay them against the bettor, betting exchanges have a peer-to-peer nature, bypassing the need for a bookmaker. The betting exchange market is driven by supply and demand – the more bettors join, the better the odds. This means more money to be made and is the main factor why you should pick a betting exchange over a bookmaker.

The second big difference is in the way betting exchanges make money. While a bookie makes its own odds and lays them against the bettor, betting exchanges allow bettors to lay and back odds between themselves, with the operator charging nothing more than a tiny commission fee. This means that a large pool of players can make the odds grow pretty big. In this case, betting exchanges tend to restrict the odds a bit (1.01-1000), which is understandable as they’re not a bookie out for profit.

On the other hand, the platform is smaller than bookmakers and offers much better odds. The free market allows the odds to be controlled by punters, resulting in a more competitive scene.

And, while exchanges offer better value than bookies, they come with a few limitations. Their biggest drawback is that they’re not really suited to a variety of markets and parlays. For example, bettors can’t determine the outcome contained in the parlay itself in betting exchanges. Even when they do offer multiples, exchanges act as a common bookmaker.

More Articles About Sports Betting:

Betting on American Football

Betting on Baseball

Betting on Basketball

Types of Sports Betting

Back and Lay Odds

The thing that might confuse most beginner punters about betting exchanges are the back and lay odds. When you’re placing a bet at a bookmaker, you can back the winner at agreed odds. In this case, the bookie lays the odds against your selection and gets your stake if you lose. If you win, you get your stake back plus a small profit.

Betting exchanges don’t work that way. With this platform, you can back or lay the odds against another bettor, giving you a chance to make a nice profit as the odds have more value. This means that bettors get the chance to trade positions, not unlike a broker at the stock exchange. Of course, any betting exchange requires backers and layers in order to work.

Placing back and lay odds is actually pretty easy. Most betting exchanges have a system which makes things simple for beginners. Let’s say that you want to bet on the Barcelona – Real Madrid derby. Placing a back bet on Barcelona will win only if the Catalan pride defeats Real. Check the price box first – most platforms have clearly marked boxes for back and lay odds. You can also see the potential return and adjust your bet as you see fit.

Placing a lay bet is more or less the same. When you stake against Barcelona in this case, the system should display the potential return as well as the liability. Don’t be confused by the term – it’s only the amount you stand to lose in case your bet loses.

Exchange betting also allows in-play bets, but with a catch. You can place your bet in any market, but there’s an 8-second delay that in order to prevent courtside betting. The in-play bets are limited to only the most popular events and offer only a few markets that are managed by the operator.

Controversies

Most of the leading global sports betting operators have asked for a ban on exchange betting. They believe that granting anonymous bettors the opportunity to bet on something that won’t happen in a match opens the doors to fixed matches and corruption in sports.

Betting exchanges have defended their activities by saying that bookies are only concerned about their profits, not the moral or integrity of sports. Many exchanges claim full cooperation with the authorities should any suspicions arise. Until now, they have done so, leading to several arrests and fraud charges.

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History of the Betting Exchange

Betting exchanges became popular at the turn of the new millennium. In 2001, Betfair introduced the first exchange platform and still maintains its leading position in the market. Others followed the betting giant in the coming years, yet none have been so successful. The peer-to-peer platform instantly gained numerous followers who recognized all the potential and value it offers.