INTRODUCTION

What is a betting exchange? We’ll start with the introduction of the pioneer in this industry Betfair. Betfair was established in 2000 with the purpose to create a betting market to be able to exchange bets and trade similar to stock markets. The idea is, not only you can bet on a team that WILL win but you can also bet on a team that WILL NOT win. This means when you bet on a team that WILL NOT win, you will win the money when the team LOSE or DRAW. Now this is getting more interesting

 

BETTING EXCHANGE VS BOOKMAKER

There are a few differences in Betting Exchange and Bookmaker, however we will explain the major difference in this section

 

 

The first differences that ,in traditional bookmaker you will be playing against the bookmakers . The bookmakers will be taking your bet and paying out if you win, therefore they make money when you lose your stake. Whereas in betting exchanges you will be betting against other players, they will MATCH your bet with another player’s bet. Player will be able to BACK and LAY one very market ,therefore betting exchange website will take a commission 2-5% from your winning. A situation similar to stock markets taking a small percentage of fees. Besides being able to BACK and LAY, as how  in the image above, they openly display trade volume and price with transparency similar to stock market. Betting Exchange will display all these data and graphs openly to public, this helps players to analyze and research on the market which traditional bookmakers will not be able to do.

 

 

These con differences, the ODDS given. Traditional bookmakers usually have similar odds or “fixed” odds for most events following strict guidelines for making their odds and they also change the odds depending on how large the betting volume is and whether player have bet on different results. As for Betting Exchange, you will be betting against many different people and they will be offering different odds which you can take or bet on.

 

The third difference is that, cash out in betting exchange is more worth compare to traditional bookmaker. For example – You bet on TEAM A(leading team)100euro and you can cash out 170euro but in traditional bookmaker you will be able to cash out only 150euro. This way player can maximize their profit and enjoy the game

HOW DOES IT WORKS?

Betting Exchangeisfairly easy tounderstand.Here’sanexample of a match.This is a match between Bayern Munich and Barcelona.

BACK

This means to bet for a certain outcome to happen

LAY

This means to bet against a certain outcome to happen.

 

CONCLUSIONS

For those who are looking for higher winning percentage with less or risk, hence betting exchange are better platforms to place bets on rather than the traditional bookmakers. First, of course with the unique betting method and secondly with odds better than normal traditional bookmakers. Throughout the day you might find some interesting odds that are offered by other players and you can bet on. This makes the betting more fun and not limitations to play.