BETTING EXCHANGE

BETTING EXCHANGE

Betting exchange works almost the same as stock market, but instead of trading shares you trade your bets. Rather than betting against the bookmaker, you bet against fellow players, with the betting exchange acting only as intermediary. We can thus describe betting exchange as a marketplace for customers to bet on the outcome of discrete events. Betting exchanges offer the same opportunities to bet as a bookmaker with a few differences. You can buy and sell the outcome, you can trade in real-time throughout the event and you trade out to cut your losses or lock in profit. Bookmaker operators generate revenue by offering less efficient odds. Betting exchanges normally generate revenue by charging a transaction fee.

You can place a ‘back’ bet – betting on something happening or a ‘lay’ back – betting against something happening. If the market moves in the right direction, you can lay the bet you have previously backed or vise versa, just like buying and selling shares, making sure you win some money regardless of the outcome.

Betting exchange offers numerous advantages to conventional bookmakers, such as no-limit betting and very sharp odds.

Example

You place a £100 ‘back’ bet on Borussia Dortmund to win German Bundesliga at odds of 4.00 (3/1) before the season starts and then place a £120 ‘lay’ bet on Borussia Dortmund at odds of 3.00 (2/1), risking £360, after they notch up a couple of wins in a row.

Should BVB win the title you will earn £400-£360=£40 and if they fail to win the title, you will earn £120-£100=£20.

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