Learn what a Betting Exchange is and how they differ from your standard online bookmaker or sportsbook. The ability to Lay your bets or to simply back as is the normal approach. The difference at the betting exchange is that you select your odds or price that has been set by fellow punters.
There’s no bookmaker profit margin so in theory the odds should be better, 20% better is what the Exchanges state.
The cost to you is a % commission paid back to the owners of the Exchange on any winning bets. This is where you can benefit from our articles as we explain what betting on the Exchange involves.
Find the betting Exchanges that offer the lowest commission rate, thereby putting more money back into your pocket.
The % rate can be as low as 2% and as high as 5% which is the introductory rate by most but not all of the Exchanges. There are also welcome bonuses and free bets available for first time players which we highlight.
The betting exchange is not the first thought when most individuals think about sports betting. It is more common to envision the traditional “bookmaker versus backer” methodology.
However, in the early 2000's, many online betting exchanges came to light, providing sports betting enthusiasts various platforms in which they could act as the layer or the backer, without a bookmaker being present.
These exchange sites have been active for over 15 years. However many punters still need help understanding how to bet on the exchange sites.
Utilizing online betting exchanges may seem somewhat confusing and modernized. Their structure however is actually fairly easy to get a hold of. By learning about the basic dynamics surrounding online bookmaker exchanges, you will be able to both lay and back bets in a convenient manner, while bringing in more profit overall.
Historically, if someone wanted to place a bet on a sporting event, they would seek out a bookmaker for assistance. The better would play the part of the “backer” by placing their money on who they thought would win.
The bookmaker would play the part of a “layer”, meaning they would win if the team lost. Lay betting is when someone bets on a chosen team to lose instead of win. While backing is the term for the most common process of betting on a team to win.
Online betting exchanges operate by using the same “layer versus backer” strategy.
However they also allow their members to act as either party. Due to their being no bookmaker involved, more profits are promised and gained as a result.
Most online betting exchanges offer up to 20% higher betting odds as opposed to traditional betting methods. This is due to the member being able to chose which position that they want to assume.
Most of the information surrounding the matched bets is available conveniently on-screen. Thus the entire operation is more organized and enhanced with maximum earning potential.
Since betting exchanges do not have an official bookmaker generating profit, many are curious as to how they stay in business with such prominence. Betting exchanges generally charge commission on every win.
However the commission percentage rates are typically generously low.
The majority of mainstream betting exchanges charge as little as 5% commission on every win. Thus ensuring that their members are guaranteed a higher profit. This is when compared to conventional betting routes.
Many are also more naturally drawn to online betting exchanges, due to the beneficial limits set on accumulated debt.
While many lose profit during traditional betting practices, online betting exchanges have productive restrictions set in place, which only allow users to accumulate a certain amount of debt.
Bookmakers traditionally allow sports betters to bet on credit. This in turn can add up into quite a large amount of debt.
With the limitations that betting exchanges have in place, betting enthusiasts can enjoy the betting process without worrying about future financial woes.
Layers and backers maybe the most common roles taken on by online betters, but it is also important to note that most online betting exchanges also enable members to take on the positions of “arbitrageurs” and “traders”.
Arbitrageurs are betters who bet on every possible outcome. This is in order to ensure some type of profit in the end.
Traders, however, pursue quite a similar path, but choose to do so when there isn't always any possible instantaneous profit involved.
Online betting exchanges typically allow members to act as layers, backers, arbitrageurs, and traders. This provides users with an admirable amount of flexibility and earning potential.
When it comes to the most reliable online betting exchange sites, Betfair is by far the largest site across the globe that is currently up and running.
Betfair brings in an estimated $50 million on a weekly basis, due to their hefty amount of active members. While Betfair has over 4 million registered members overall, they still have over 1 million members who are active on a regular basis.
Due to their sizable amount of dedicated users, Betfair is a great choice for those looking for a well-established exchange.
Due to their substantially populated platform, betters are able to become matched with suitable opponents during just about any sporting event, regardless of how minor or major the event is classified as.
Since the betting exchanges match betters with appropriate opponents, the predicted losses are never too extravagant, and winning is a more frequent occurrence.
Another one of the most popular and reliable betting exchanges, is Betdaq.
Betdaq is the second largest international betting exchange site and operates similarly to Betfair. These sites are based out of Ireland (Betdaq) and the United Kingdom (Betfair).
Both support most forms of currency in order to accommodate both national and international members.
The simple yet interactive interfaces of both Betfair and Betdaq allow users to place live bets in an organized and simplified manner with related calculations conveniently in clear view. Being able to view and analyze odd percentages and earning potential makes the betting process a lot more of an enjoyable experience.
Another useful tool surrounding betting exchanges for both hosts and participants, is online betting exchange software. This type of betting software allows betters to monitor their ongoing bets in a direct manner, all in one location.
This software is also great for betting exchanges that are just starting out, due to how they assist owners of new exchanges in marketing their product to generate more traffic.
Regardless of who installs and utilizes the software, these programs can be a great contributor in increased profit for both members and owners of betting exchange sites.
Introducing a new betting system into your already-established routine can understandably seem like an avoidable hassle.
However online betting exchange sites have been proven to be more effective than traditional betting in almost every measurable area. By familiarizing yourself with betting exchanges, explained as above, you are sure to bring in a higher profit with a lot less effort involved.
Not only do these exchanges provide members with a convenient and profitable experience, but they do so in a way that is safe and engaging for participants.