What is Exchange Betting?
Exchange betting has become quite popular in recent times. Do you know what is exchange betting? This may be due to the perceived or real advantage as you get a chance to bet against other punters. You get to choose to bet as an ordinary punter and place bets or be a bookmaker and offer odds for other punters to bet on. The websites have software that keeps all the odds and bets in good order. Novice players should exercise great care and use small stakes until they understand the process. Always assess and double check the stakes and liabilities to be sure their bet is correct. It is only after getting used to the markets that one may reap the rewards. It is clear that there is a lot of money to be made by seeing how many bookmakers keep limiting the maximum stakes. One can practice lay and back betting on several sports such as football, tennis, golf, cricket, darts, horse racing, snooker, greyhounds, boxing, baseball, American football, basketball, ice hockey etc.
What is exchange betting?
A betting exchange is more or less like a stock exchange whereby the marketplace is open for different traders. Traditional bookmakers on the other hand have employed traders who know the markets to set the odds for each market. In an exchange user are offered a platform whereby they can be the bookmakers (lay the odds for others) or the bettors (back the odds from other users) as they may choose. Odds are offered in the European decimal format whereby the stake is incorporated into the price. The option to bet on the offers laid by others is there for those who do not wish to act as bookmakers. Since there is no profit margin calculated, you are much more likely to get better odds than when dealing with a traditional bookmaker. The prices are determined by punters because the laws of supply and demand operate more efficiently. Commission is charged on net profits therefore players can take advantage of market swings.
Exchange betting vs bookmakers
In a betting exchange you get to use terms such as “lay and back” technically meaning “sell and back”. Instead of the ordinary bookmakers, the players will choose which odds to offer, and that is “to lay out the bet”. To cover their running costs and generate a profit, the website then charges a small percentage of the winnings which is a variable amount. The best exchange websites charge about 5% which is still lower than most bookmakers who operate with higher margins like 10 % or more. The distinguishing factor for the exchange as compared to other bookmakers is the chance for players to bet against given outcomes. Normal bets have only a chance to back outcomes and this is too limiting especially in large tournaments such as the EPL or the German Bundesliga. If you lay a bet against a certain team winning for instance, there is chance to win if the team lose or if there is a draw.
It is important to read and understand what exchange betting means for you as an individual before getting into the game. The facilities offered are top notch and there is of course fun from betting on other people like you. There is a reasonable chance of betting against non-professionals and thus more chance at winning. Unlike traditional bookmakers, the profit margin factor is removed therefore you start fair and there’s much better odds. Acting like a bookmaker may still generate some losses and it is important to have an allowance to cover the potential losses.
Exchange players can benefit or lose from changes in the price while the event is ongoing. One is able to maneuver market positions without being held captive by bookmaker margins when they choose to change their mind. If the prices move downward after placing a bet, one can lay off their bet to lock in profit. If the prices move upward then one has to count it as a loss. Following the events live is important to help us realize maximum vale and eliminate excessive risks that may come from abrupt changes during the game. Note if you lay a shorter price than what is on the exchange there will be no bets placed since you are not matching the price.
Famous betting exchanges
The biggest betting exchange is of course Betfair. It was established 2001 and now it has millions of players trading at Betfair. Another betting exchanges are Betdaq and Matchbook. They are not famous as Betfair and they don’t have to many players.