Betting exchange

The last couple of years have seen a sudden emergence of betting exchanges catering to online sports bettors. So what are these betting exchanges? Betting exchanges, unlike the traditional bookmaker, enable you to bet against other punters like yourself instead of betting against the bookmaker. In other words, they make person to person betting possible by facilitating the software and correlating the bets of various individuals with contradicting views. A betting exchange offers better value to the punter, as there is no bookmaker profit involved here. Also you can play bookmaker and provide lay betting odds. Betting exchanges are not responsible for setting the odds, as it is the punters who decide the odds on the markets offered on the exchanges.

Betting exchanges facilitate the exchange of bets between punters; for example, if a punter wants to place a bet on a particular horse at the odds of 5/1 and another punter wishes to lay bet that very horse at 5/1 odds, the betting exchange will be able to assist in the swap. One can even sell made bets and reap the rewards even before the event has actually started. The odds offered are greater, as the bookmaker’s commission is not added here. It is believed that betting exchanges offer more than 20% higher betting odds than the traditional bookmaker. However betting exchanges, too, charge a small fee that is deducted from the winnings of each coordinated bet placed at the exchange. The loser is not charged any commission for the bet.

How this works is that, some punters may bet on more than one bet on a single event alone of which some will lose while the others will win. The net profit of all the events won will be charged a commission. The standard commission at the beginning is 5%, but as you continue to bet at the exchange and your turnover goes up, the commission comes down to about 2%. In this way, the betting exchange does not stand any risk while the punter can take advantage of the higher odds. In order to get better betting odds from what is being offered on the exchange, the punter may demand a better price. For instance, if a selection is offered at best odds of 4/1 but you wish to support it at the odds of 5/1, you may place an order for your chosen stake.

The order remains valid until it is filled or you wish to change or cancel it or until the event begins. In case it is not filled before the event begins, the order will be terminated. It could also be partly filled, meaning a part of the order is matched while the rest remains unmatched. Another benefit of a betting exchange is that you can place live bets on a number of major sporting events. Live betting is quite exciting with the odds changing in real time and has become quite popular amongst sports bettors. You can even lock in a profit at a betting exchange. For example, if you bet £50 on a horse at the odds of 8/1 and it goes down to 2/1 before or during the event, you can lay your selection at 2/1 odds. Your bet of £100 could lose you £200 if the horse happens to win.

So if the horse wins at 8/1 odds, you get £400 and lose £200 = £200 profit. In case the horse loses, you will lose your bet of £50, but you can keep the winnings of £100 of your lay bet. This type of bet is known as arbitrage betting and is used by experienced punters to lock in their profits at various betting exchanges. It’s just like trading at the stock exchange.

There are various advantages of choosing a betting exchange over a traditional bookmaker. With the latter, you are restricted to betting against the bookmaker while with betting exchanges, you are betting against a worldwide punter community. The function of the betting exchange is to find amongst millions of punters, a match for your bet to make the bet a success in real time. Whoever of the two punters wins the bet will have to pay the prescribed commission to the betting exchange. The whole procedure is completely safe and there is no room for argument, as the funds are held by the betting exchange until the bet has been settled, which ensures that the winning punter receives the money.

Although you may already have accounts with online bookmakers, it is worth trying out a betting exchange as well. You will notice a marked difference in the odds and the profits that you make from your bets. Choosing a betting exchange is not as difficult as selecting an online bookmaker of which there are hundreds, as betting exchanges are limited in number and you can easily locate the popular ones. Larger betting exchanges have bigger market liquidity, which makes it possible to match the bets you desire. Betfair by far is considered one of the best and most popular betting exchanges in Europe. Other names include Betdaq and Betsson, which offer equally good reasons to be much sought after by punters.

It is very easy to register to a betting exchange, just like any online bookmaker. All you need to do is fill in some of your personal details and you are ready to become a member of the betting exchange you have chosen. The next step is to upload funds into your newly opened betting account at the exchange, which can be done through various options such as major credit cards, wire transfer or via an e-wallet system. You can look up the payment options at the betting exchange and choose the mode that is most convenient for you.

Since betting exchanges face tough competition from online bookmakers, you may find some very interesting promotions at the betting exchanges, which have been designed to attract more customers. You can take advantage of these promotions, as well as all the other benefits that a betting exchange has to offer that you will not find with a traditional bookmaker.

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