Betting Exchanges are not the same as traditional bookmakers because they let players act as bookmakers in both accepting and placing wagers. Their goal is to eliminate the middleman and bring people who choose to take opposite sides together on an event with the hope that by removing the bookmaker, both sides will have better odds.
The first betting exchange ever made, called Flutter.com, was launched in 2000 as a result of peer-to-peer betting. Founded in 1999, Betfair ended up merging with Flutter and has been dominant in the exchange space ever since, growing bigger as a brand.
How does Bet Exchanges work?
Bet exchanges facilitate transactions between players who want to bet on an outcome and bet against the outcome on the same event. For example, if I predict that Gareth Bale to score first, I can request an odd of 6/1 (7.00 in decimal format) and stake $10 on an exchange. There may be someone elsewhere who would think that Bale won’t score first, and they can match my bet.
They do not have to stake all my $10, but whatever they choose to lay, they will be liable for six times their stake, so if they wish to stake all $10, they would have to give the exchange $60 to cover their stake.
There are many reputable exchanges out there that you can bank on. They are trustworthy so you don’t have to be afraid of them holding the money for both parties. The exchange does not risk any of its own money, but rather it takes a commission, from both sides or from the winner.
When you visit such market, you will see boxes on the left-hand side often blue and boxes on the right-hand side typically pink that represent the odds available for back or lay. In another example, if Liverpool is at home to Hull City and the odds are 1.51 (just over 1/2) to back and 1.52 to lay. Below these odds, you will find the amount available for staking in smaller text, such as £4,500 to back and £8,100 to lay.
Even though odds and amounts can fluctuate rapidly, just as kickoff arrives, you get an idea of what you can wager or lay and if your bet can get matched immediately and confirmed, or if you have to wait for another player to stake against the other half of the wager.
Furthermore, having a concrete knowledge about betting is important. There are reputable betting sites and you can come across them by visiting top platforms. It is not a strange fact that your betting experience is a function of the information and resources presented to you.
Besides this, many of these platforms offer tips, including Tips for getting bet boosts, for acquaint them with the right ways to boost their winning chances.
Pros and Cons of using an Exchange
It is important to be aware of the various upsides, as well as downsides, of making use of an exchange. Some of these are introduced in this section.
PROS
Good odds
This represents one the greatest advantages of using an exchangeThe profit margin for bookmakers is typically 20% or more, while the commission for exchanges is 5% or less, which is why odds for outsiders at exchanges are often much better than those at bookies.
Not limited or at risk of ban
If you have a winning streak at a bookie, your account may be restricted or closed. Since your bets are not placed against one individual and the exchange receives its commission whether you lose or win, this will notoccur.
You can Lay Bets
By becoming a bookmaker, you have a lot of options to lay bets. Wagering against an outcome can become an excellent way to make profits from football.
CONS
Liquidity Issues
Although there are no laid out maximum bet limits, you need to find someone willing to lay, or accept your bet or back your lay should you decide to be a bookie. A lack of liquidity may make bookmakers offer higher odds and/or higher stakes in some of the smaller exchanges and on some of the more obscure markets. This rarely happens for Premier League games or other big games.
Minimum Bet
The minimum bet on most exchanges is £2, so players with small bankrolls may not be able to use them.
Few markets
There will be fewer choices for people who prefer unusual or special bets because exchanges need liquidity.
Conclusion
You have to weigh your options before deciding what method of staking you want to apply. However, if you need better odds on your games, you can consider the use of bet exchanges.
