ABOUT BETTING EXCHANGES
A betting exchange has one major difference from what we know as the traditional bookmakers: it pits ordinary punters against each other.
On a betting exchange, you are betting against other gamblers. Every customer on a betting exchange can decide for themselves whether to make or lay bets. They can bet on positive or negative outcomes (win or lose bets) and, crucially, they can dictate the price they are willing to accept on every bet made or laid.
The betting exchange itself is simply a tool that allows gamblers to place their bets. Using the technology provided by the betting exchange, individual gamblers are able to play the role of traditional bookmaker, with the betting exchange accepting a nominal commission on each transaction for the service provided.
WHAT IS A BETTING EXCHANGE?
A betting exchange is an online tool that allows gamblers to bet directly against each other, as opposed to betting against traditional bookmakers.
As sports betting is essentially a game of opinions, betting exchanges allow their customers to set their own odds on the outcomes in any given sporting event. Therefore, when betting via a betting exchange, punters can routinely avail of a much wider spectrum of prices offered, with a knock-on effect of bigger profits when landing a winning bet!
By using a betting exchange, you can instantly ‘shop around’ via any amount of other users before choosing the satisfactory price and value for your bet. Equally, if you are opting to lay an outcome, you alone dictate the price you are willing to offer to other exchange users.
Lay betting is perhaps the biggest and most fundamental difference between exchange betting and traditional bookmakers. Namely, you can lay any given outcome – that is, putting your money on an outcome not to happen, as opposed to something that will happen.
In its simplest form, a betting exchange allows you to bet on any outcome, positive or negative. You can create your own odds or shop around for the best available odds when staking a bet and you can set the amount of money you are willing to accept in all wagers.
TYPES OF BET
The most common form of bet, where you ‘back’ an outcome to happen in a given event e.g. you back Manchester United to beat Liverpool in a Premier League match. With bookmakers, odds on Man United to win are compiled by the firm. On a betting exchange, the odds are set by each individual customer willing to lay Man United not to win the game.
With a lay bet, you take on the role of the bookmaker. Ever found yourself watching a sporting event and, while you cannot be certain what the outcome will be, you are confident you can predict what is NOT going to happen e.g. in a horse race, you feel sure the favourite will not win.
On a betting exchange, you can lay this outcome by setting your own odds and accepting bets from other exchange punters.
With lay betting, it is important to understand how much you stand to lose should the outcome go against you. To better understand, you could use a lay bet calculator.
These are some simple betting exchange examples that highlight the difference between exchanges and traditional bookmakers.