What is a betting exchange?
In the market there are a number of betting exchanges in different forms offered by different suppliers. Many are operated independently without connections to any betting companies. The betting exchanges competes with traditional betting companies. Therefore, the betting companies have now started to establish their own betting exchanges to broaden their services.
On a betting exchange, or odds exchange, it is the players’ own bets that are the entire market. The betting exchange provider is just an intermediary between you and other players. Sometimes, some odds may not be attractive enough at a regular betting company, or you may know more about the game than you think others know. Then you can create your own bet with the odds that you find suitable for this particular match.
The world’s largest betting exchange
As far as we know, Betfair is the largest betting exchange in the world. Click the link below to start backing and laying bets today.
Differences between a betting exchange and traditional odds betting
For the betting exchange, the big difference between offering their own sportsbook, is that they take no risk in the bet. They only provide the technical solution and take care of the money until the game is over. For that service, they often charge a small fee. It is called commission, and it is only charged when you win a bet.
The bets are also a little different, where you have the choice to back or lay a game. We will tell you more about that later. Most often, the odds and opportunities are better on betting exchanges than on traditional betting sites, which is why they are also popular among serious bettors.
Back or lay on a betting exchange?
On the betting exchange you can choose what role you want. Either you can be the one playing on available bets, or you can act as a bookmaker yourself – that is, create your bets and offer them to other bettors. The possibilities here are endless.
Back a game
Let’s say you think Milan will win a match against Juventus. You don’t find any attractive odds on traditional betting sites, but on the game exchange you may find a bet that another player has laid. That player does not think Milan will win and has therefore set a high odds for a Milan win. You can then bet against the other player by placing a bet. This is called backing a game. If Milan wins the game, you win the bet, and whoever created the game loses their bet. Your profit minus commission is then paid out to your betting account.
Lay a game
In the same example as above with Milan and Juventus, you can add the game yourself instead. You then create a game where you think Juventus will not win the match. Then you place your bet and other players can then play “against” your bet. This is called laying a game.
If no player wants to match your odds and play against you, you get your bet back.
Understand what is displayed on the betting exchange
When you look at what is presented on a betting exchange, you are faced with various matches and odds and squares that show the odds of backing or laying a bet. Usually, the amount called liquidity for that odds is in the same box. That’s how much money is available to play with this particular odds. The numbers change all the time as other players place their bets. You see if the games are matched or not. White squares are unmatched games waiting to be matched.
How to play
When you want to bet on the odds exchange, keep an eye on the boxes that are colored. There are already matched games that you can play directly. Do you want to back or lay? Pick the choice you think is right for your bet. Usually your bet is matched directly and placed, but things can happen quickly on the odds exchange and conditions change all the time.
Exposure to the betting exchange
Exposure is the amount you risk if, for example, a booked game does not go in. If you book a match for the odds of 5.0 and with the amount of € 10, your exposure is € 50 if the game does not go as you intended. There is a significant risk of winning € 10. Here you have to make sure that what you get it right.
Keep in mind that if you do not control how you set your odds, you can get a great exposure.
When you lay a bet you usually do not go over 2.0. Find out what applies to the betting exchange you intend to play on. Many people do not allow laying games with higher exposure than what is in the betting account. It is important to keep an eye on this as it can be a costly mistake.
Cash outs on a betting exchange
Cash out is always a good feature and is also often available on a betting exchange. The feature means that during a game you can make payouts if you want to collect a profit or to minimize a loss.
You can place combination bets like doubles, triples or quads on the odds exchange. It basically works like it does on a regular betting site. You choose which games you want to play and collect them on your slip. Depending on the supplier, it may work a little differently, but in principle it works the same way.