The betting exchange is the new kid on the block when it comes to online sports betting. There are many advantages involved with using an exchange and this guide aims to explain exactly what these are.
What is an Exchange?
A betting exchange is basically a middleman between two people who bet against each other. If you think Manchester United will win the premiership you can go onto an exchange and bet against someone else who thinks they won’t. The exchange will hold yours and your competitors’ money and pay the appropriate return to the winning party.
On the flip side if you think Manchester United won’t win, you can set odds on an exchange for this and wait for someone to match the bet (agree on the odds and bet against you). By laying against an outcome you are taking the place of the bookie whose job this normally is.
What are the advantages of the Betting Exchange?
There are a number of key advantages involved with the betting exchange over its more traditional counterpart:
- Better odds. Betting exchanges often advertise their odds to be 20-30% better than traditional bookies . It is also important to take into account the fact that exchanges are businesses and they do take a cut. This cut however tends to be much less than what a traditional bookie will make with its spread and is generally around 2-5% of your winnings.
- The ability to lay. It gives you the opportunity to bet against a particular horse, team, etc from winning. If you see fit, you can also use this facility to hedge bets you have already placed. If for example, you placed a bet for Aston Villa to win the league and come the last few games of the season they were joint top, you could lay against them to ensure you win either way.
- In game betting. The variety of in running betting in betting exchanges is huge due to the sheer number of people betting against each other. It is much more difficult for a traditional bookie to offer such betting due to its limited resources. Imagine how many trained odds setters would be required to provide constantly updated odds for all the football, rugby games, etc that take place on a Saturday.
- More fun! Many people also find it more exciting to take part in betting on an exchange rather than through a traditional bookie. It is more of a hands on concept as you are able to a certain extent dictate the odds that are on offer. It removes the role of the bookie as each person on an exchange is like their own bookmaker.
There are a number of very good betting exchanges out there with the best known being Betfair.
Betting Exchange Terminology
To “back”. This is to bet on a particular team, horse, etc winning the chosen event. If you back Plymouth Argyle to win the Championship you are saying you think they will win it.
To “lay”. This is to bet against a selection from winning. If you lay Rangers to win the SPL you are saying that they will not win.
Matched met. When a punter agrees on odds you have set, the bet is said to be matched.
Unmatched bet. If no one wants to take you up on the odds you have set, your bet is said to be unmatched.
