Betting Exchanges are sports-booking marketplaces where you can place bets on the outcomes of bookmaker-generated and custom-made events. These platforms offer punters more flexibility in addition to bookmakers’ traditional betting options.
For instance, you can bet head-to-head against a friend on your custom-made terms before or during a live game. You can buy (or “back”) bookmaker-generated odds you deem likelier to win. Similarly, you may also wager against (sell or “lay”) bookmaker-generated odds you deem likelier to lose. Bets can be placed and monitored in real-time to minimize your chances of losing your stake.
Generally, bookmakers earn profits by providing less efficient odds. In contrast, exchanges earn profits by charging a modest fee on winning stakes. As a result, exchanges are also casually referred to as peer-to-peer betting platforms. They have grown in popularity because of their flexibility and higher winning potential.
How Do Betting Exchanges Work?
Betting exchanges effectively connect players who want to bet on opposite sides of an event. They function as a mediator between the person betting on an event to happen (the backer) and the person betting on the same event not happening (the layer).
Backers usually take the bookmaker’s side, winning if the odds play out. Layers take the opposite side, betting against the bookmaker’s odds and winning if it doesn’t play out. Exchanges generate revenue by charging a substantial fee from the winning party.
How To Use A Betting Exchange?
Bet exchange platforms operate similarly to most sports bookie sites. First, you must create an account, complete your verification, and make a deposit. After that, you will have full access to the exchange platform and can also start betting. As soon as you log in to your betting account, you should be able to access all the supported sporting events and markets on the platform.
To start placing bets, you can navigate to the Markets menu. From there, you can set your desired market and staking parameters. You can also choose to place your wager as a backer or layer.
The fun part of exchange betting is that you can decide to do any of the following:
- Bet on the bookmaker’s terms (or odds)
- Bet against the bookmaker’s terms (or odds)
- Create your own custom odds and bet against another player
Betting as a Backer (Back Betting)
Backing a selection (or back betting) works similarly to betting with a bookmaker. In this case, you will select an option (odds) from what the exchange provides.
For example, whether or not a basketball team will win a match. Whether or not a horse will win a race, etc.
The distinction with betting as a back bettor on an exchange is that you can create your odds. You can adjust the parameters according to your preference and set your stake. Once this is done, the betting exchange will match you with a lay bettor willing to wager against your odds.
At the end of the bet, the exchange will credit whoever wins the wager with the sum of both stakes minus a small commission.
An example:
Betting as a Layer (Lay Betting)
Laying a selection (lay betting) is not too different from backing one. It simply means betting against whatever the back bettor has wagered.
For example, if a back bettor bets that a basketball team will win a match, the lay bettor wagers against it. If a back bettor bets that a horse will win a race, the lay bettor wagers that it won’t. Etc.
You can also create your odds as a lay bettor. TheTrader betting exchange usually provides an option for payouts and liability. You can decide what you want to stake on your customized lay bet. However, the exchange decides what you will be charged if you lose. This is usually higher than your initial stake. The payout value indicates what you win if the odds go in your favor. Usually, the payout is the total stake multiplied by the odds.
There is no theoretical limit to the odds or stakes you may make with an exchange. However, there’s also no assurance that your proposal will be approved since it relies on whether or not another bettor wants to wager against them.
The wager may be cancelled if you suggest a bet and no player accepts. Any monies deducted from your account will be returned in full.
An example:
What Is The Difference Between A Bookmaker And A Betting Exchange?
The introduction of exchange betting into the sports betting market had many people guessing. Some felt that exchange betting would completely change the world of sports betting and possibly end betting with scrapbooks and bookmakers.
Today, exchange betting has undoubtedly influenced the sports betting market significantly. It has become quite popular with punters and opened a new horizon of possibilities in sports betting. However, it has not quite replaced betting with bookies.
Most punters prefer to bet with exchanges because of the unique ability to set custom bets, lay bookmaker odds, and bet against each other. Besides this, bookmakers and exchanges have peculiar features that make each one stand out.
Bookmaker:
- Betting margin — Bookmakers set selected odds so bettors can wager on both sides of an event. They make their revenue from what you lose while betting.
- Balanced Odds — Bookmakers provide a sum of balanced odds on both sides.
- Bettor vs the House — Bookmakers allow you to bet against the house.
- Offers — Bookmakers are popular for bonuses and giveaways like boosted odds and free bets to incentivize bettors.
- Cash-Out — Most bookmakers offer cash-out options that allow you to close a bet early and take part of the profit.
Betting Exchange:
- Commission — Betting exchanges offer more extensive odds options and charge a commission on the winner’s profit. Commissions usually range from 2-8%.
- Odds Flexibility — With betting exchanges, you can set your betting odds as long as there is a layer on the other side to wager against your odds.
- Back and Lay Betting — You can bet against other punters. One player typically sets the odds while the other bets against it.
- Offers — Exchanges rarely offer incentives in the form of bonuses. However, they provide more flexible betting options, giving bettors higher chances of winning.
- Cash-Out — Bet exchanges do not offer cash-outs since they act as intermediaries. Bettors must hold their positions until the end. You may also add more bets during a live game.
What Are The Risks With Exchange?
Although exchange betting offers several advantages, they also have some drawbacks.
Pros:
- Extensive Odds — Bet exchanges are never at risk of losing money since bettors essentially wager against themselves. As a result, there’s always a winner. Exchanges make revenue by charging a small fee from the winner’s payout. Because of this, they are more flexible with their odds and even let you set the odds yourself.
- Lay Bets — Punters can bet on the possibility of an event not happening rather than always wagering on specific events to happen.
Cons:
- Finding Matches — You may find it difficult to match your peer-to-peer odds, especially when you’re betting on not-so-popular sports like darts, esports, etc.
- No Offers — Betting exchanges hardly offer any bonuses.
Conclusion
Exchanges offer punters several advantages. They allow you to place bets on bookmaker-generated, custom-made, and peer-to-peer events. There is no theoretical limit to the odds, stakes, or winnings you may make with an exchange. Whether you’re a casual or serious sports bettor, Thetrader exchange offers you extensive winning possibilities to explore.
