Have you ever wondered what is Betting Exchange?
Regardless of whether you are a bettor or not, this field certainly fascinates you too.
A little bit of history
What if you go to a horse race and on any of the 5 horses you bet on, you get back not more than x3 of the stake? In other words, if you invest £5000 in all possibilities, you get back only £3000, regardless of the result.
Completely unfair, that’s right! A few decades ago this is exactly what happened. That was all the bookmaker offered and you had nothing to do about it.
The same thing happens now, only that the bookies’ margin is no longer so high (now you invest £5000 and get back around £4750).
In 1999, Andrew Black, a former professional gambler and software developer, partnered with Ed Wray, a financial trader, to establish Flutter.com (now Betfair), a platform designed to let users bet against one another rather than against a traditional bookmaker.
Let’s continue by breaking down the two terms
Betting
⇒
The act of wagering money on the outcome of a sporting event, race, game, or other uncertain events with the primary intent of winning extra money. The result of the event is often determined by chance, but it can also be based on skill or a combination of both.
Exchange
⇒
A platform or marketplace where goods, assets, or services are traded between buyers and sellers. Exchanges serve as intermediaries, facilitating transactions and helping to match buyers and sellers in order to facilitate efficient and fair trading.
So, what is Betting Exchange?
A betting exchange is a platform where traders can bet against each other on various sporting events or other events rather than betting against a bookmaker. In a betting exchange, individuals act as both punters and bookmakers, setting their own odds and accepting bets from other traders.
The betting exchange acts as an intermediary, collecting a small commission on winning bets to cover their operating costs and ensure a profit.
Betting Exchange
Why should you try it
Why should you avoid it
✔️ Greater flexibility in the odds, as the market is determined by the traders themselves, rather than a bookmaker
✔️ Variety of additional features, such as the option to place lay bets (betting that an outcome will not happen), the ability to trade out of positions, and a wide range of events
✔️ Better odds, since betting exchanges are marketplaces where traders bet against each other, compared to those offered by traditional bookmakers
✔️ A commission on winning bets, which can be lower than the margins charged by traditional bookmakers (and it’s also transparent!)
✔️ You are allowed to set your own odds and act as both punter and bookmaker, giving you increased control over your betting experience
❌ Betting exchanges rely on a sufficient number of traders placing bets on an event in order to provide appropriate liquidity
❌ As with any technology-based platform, betting exchanges can be subject to technical issues such as downtime or slow performance
❌ Betting exchanges have limited coverage and may still not cover every event or sport that a punter may be interested in betting on, compared to traditional bookmakers
❌ Complexity is higher than traditional bookmakers and may require a greater understanding of how betting exchange work and the mechanics of sports trading
The decision between a betting exchange and a traditional bookmaker will ultimately depend on the tastes and requirements of the individual bettor. Others may like the simpler and more user-friendly experience provided by traditional bookies.
Where can you place exchange bets?
You can place exchange bets on a variety of platforms, such as:
Betfair Exchange ☛ is one of the largest and most well-known betting exchanges, offering a diverse selection of betting markets and attractive odds.
Matchbook ☛ a well-established betting exchange that offers a comparable selection of markets and services to Betfair.
Smarkets ☛ is a newcomer to the betting exchange market, with a concentration on sports betting and a clean, user-friendly layout.
BETDAQ ☛ a well-established betting exchange that provides a variety of markets and competitive odds.
BetConnect ☛ is a relatively new exchange that unites professional and recreational gamblers, giving users access to and the ability to trade against the betting activity of professional gamblers.
There are many betting exchanges available, and the optimal platform for you depends on your individual requirements and tastes.
We’ll not make any recommendations. Just that, when selecting a betting exchange, it is vital to analyze the number of available markets, the odds, the commission, the platform’s security and dependability, and the user experience.