What is a Betting Exchange
Betting exchange is a relatively new idea in the betting world and it’s gaining more and more fans each day. Betting exchange enables you to bet against other players instead against betting houses in a way that you can bet in a game or event will end in a certain way, in which case you can choose BACK bet, or in something not happening, when you can choose LAY bet.
Also you have an opportunity to make your own offer thereby becoming the better and making odds which you find could be accepted by someone else.
Betting exchange is an intermediator by creating a platform which enables individuals to bet one against the other. Therefore the betting exchange charges a comission on winnings usually amounting 1-5%, which represents its only certain income. If you win your bet the betting exchange will deduct your comission from your net sum of winning (stake not included). If you lose your bet there will be nothing to deduct and the betting exchange will charge its comission from your opponent. In many betting exchanges comission is decreasing the more you bet, according to the point scheme created by the betting exchange.
Betting exchange is an original internet product hence it is the only place where it can exist. It is hard to imagine any other medium or a place where betters from all over the world could bet against one another 24h a day and that anyone could find someone willing to accept his/her bet. It is the number of people betting on a betting exchange what determines its value. The number of betting exchanges is increasing daily, but there are only few of them with enough users to maintain satisfying liquidity, i.e. a constant flow of new betting offers.
From the mere beginning in year 2000 Betfair dominates as the biggest and most liqid betting exchange in the world. With far the biggest number of users Betfair has the best offer of sports and events to bet on, the most betting options (elaboration) of single events and, of course, the best liquidity.
Lately, more and more popular is Smarkets, especially due to its comission of only 2%. There is also Betdaq, an old Betfair’s rival. On the popular so called „american sports“ oriented market the only satisfying offer can be found with Matchbook.
The advantages of betting exchange
- By setting the odds the betting exchange doesn’t have any role and practically no margin which results with odds that are among the best on the market even when comission is taken into account
- All the betting exchange have a certain minimum payment, but the maximum payment or maximum winning practically doesn’t exist. It depends on the betting exchange liquidity, i.e. the sum offerd on the betting exhange, and in case you make your own bet the maximum is determined by you
- Live betting offer is the biggest on the whole betting market. If there is enough people willing to bet on a certain event there is no reason for it not to be offered for live betting on betting exchange. You can bet on each event untill it ends, even on horse racing which only takes a few minutes
- Though betting exchange is intended mainly for individual betting due to its one – against – the other bettor principal, lately there is also an option of combination bet betting, the so called Multiples
In the beginning a little hard to understand but the most interesting thing with betting exchange is the possibility of Laying the odds which can be explained as betting in something not happening. Usually when you bet you have to think of the team that might win or what will be the outcomeof a game. Therewith you accept the quotes set by the betting house.
If you choose Lay option on a betting exchange you can bet in something not happening. For example, you can bet on a game not ending with a score 2-2. If a game ends in any other result you win your bet. You can bet on a player not scoring a goal in a certain game etc. in the same way. Here you can bet on a certain outcome offered in usuall betting will not happen.
Betting in a betting exchange is all about looking for an oponent willing to bet on a result that is the opposite of what you find will be the winning result. Therewith you can accept the odds set by someone else and than the bet is immediately made. If you consider your choice more valuable than the currently offered you can set you own odds witch you consider to be realistic. In that case your bet will not be made untill it is taken by someone else betting on a result that is the opposite of your choice accepting your quotes. You should also take into account you’re not the only one making a bet on the betting exchange. The bets are made by order, as they are placed. The earlier you set your quote the more likely is that your bet will be accepted and made.
The number of Betting exchanges of a good quality is still relatively small. If you are only entering the betting exchange world we highly reccomend Betfair to start with since it has the best offer and liquidity. After that you should definately try with Smarkets and Betdaq if nothing for its conveniences like decreased comission and different interesting promotions ocasionally offered.