Betting Exchange

Unlike on a standard, fixed-odds betting platform, betting exchanges pit punters against each other.

When evaluating a betting exchange, you are betting against other gamblers. Each individual decides whether to make or lay bets, whether to bet on positive or negative outcomes and can then choose the price they are willing to accept.

Like bookmakers provide a bet builder tool, they are simply delivering the platform for a betting exchange to function. 

Bookmakers make a commission through the betting exchange in return for a functional and reliable service. Each gambler can play the role of bookmaker on a betting exchange.

What Is A Betting Exchange?

A betting exchange is where individual gamblers bet against one another rather than gambling on markets and odds provided by bookies. 

From football betting to gambling on the General Election, betting is ultimately about opinions and predictions. Betting exchanges enable punters to put those opinions to the test by setting their own odds on an outcome.

In general, an exchange will have a much wider range of markets and prices.

Potential winnings are often thought to be higher given that much of the bookmaker’s margins are removed.

When laying an outcome, you can set the price. If you’re looking to place a bet, then you have the opportunity to seamlessly shop around on the service to identify the best possible price. 

Lay betting is perhaps the biggest and most fundamental difference between exchange betting and traditional bookmakers.

Namely, you can lay any given outcome – that is, putting your money on an outcome not to happen, as opposed to something that will happen.

In its simplest form, a betting exchange allows you to bet on any outcome, positive or negative. You can create your own odds or shop around for the best available odds when staking a bet and you can set the amount of money you are willing to accept in all wagers.

Types of Bets

One of the most obvious differences between betting exchanges and fixed-odds sportsbooks is the types of bets available. 

Win Bet

A win bet is the most common form of wager on a betting exchange. This is when a punter backs a certain outcome like Erling Haaland to win the Golden Boot or Joe Root to top score for England.

Odds for such bets are set by other gamblers are willing to bet the ‘other side’ of the bet. In this case, that would mean a lay bet on Haaland to not win the Golden Boot or Joe Root to not top score.

Longer odds are usually available on a betting exchange compared to a traditional sportsbook.

Lay Bet

When placing a lay bet, you are playing the role of bookmaker.

If you’re watching the Cheltenham festival and are confident a horse won’t win, you may choose to bet against/fade that horse rather than back a different runner to win.

Using a betting exchange, you are able to set the odds on this outcome and accept bets from other horse racing punters.

If you were to lay the favourite in a horse race at 3.00 (2/1) for £50, you are risking £100 – that is to say, if the favourite wins, you must pay out £100 to the customers who have bet with you.

If anything other than the favourite wins the race, you win £50.

With lay betting, it is important to understand how much you stand to lose should the outcome go against you. To better understand, you could use a lay bet calculator.

Betting Exchange FAQs:

Why Should You Use A Betting Exchange?

The main advantage for using a betting exchange is that you can shop around and find extra value compared to traditional bookmakers.

There is potential for bigger winnings with a betting exchange, and you can use lay betting to secure profit regardless of the outcome. 

Types Of Bet - Betting Exchange

There are two types of bet on the betting exchange: 

• Win - this is where you back a team to win a particular event.

• Lay - this is where you become the bookmaker. 

You can choose to lay the favourite, giving you a number of bets against that fancied outcome. 

What Sports Are Best For The Betting Exchange?

Football and horse racing are the most popular on betting exchange platforms. Other sports are available, however, including cricket, basketball, tennis, and rugby.

How To Get Involved With A Betting Exchange

Research thoroughly before placing a bet on the betting exchange. First of all, you need to learn how a betting exchange works. Hone your strategy and find the betting exchange best suited to your betting habits.