An Introduction to Exchange Betting

Finding the right outlet to place your bets provides the perfect platform to formulate a winning action plan. A betting exchange may be the ideal option for you!

While it shares many attributes with traditional bookies, the betting exchange arena opens plenty of new doors, putting you in even greater control of your betting activities. Those ROIs will look beefier than ever with greater authority at your disposal.

A Brief Look At Betting Exchanges

Exchange betting is very similar to bookmakers in that you are betting on the outcome of a particular sporting event. Instead of betting directly against the bookmaker, your wagers are against other punters who predict the opposite result to you.

The betting exchange is simply a marketplace that connects gamblers and facilitates their ability to make wagers against each other. As the bookmaker isn’t directly involved with the stakes or payouts, it allows you to bet from either side of the transaction.

• The Backer: The person betting on an outcome to occur, placing a stake on the event at certain odds.
• The Layer: The person betting against the odds, accepting the stake and responsible for paying out winning bets.

In this sense, you can think of exchange betting as another form of trades. The backer is essentially the buyer, while the layer is the seller; instead of trading stocks and currencies, trades are made on the outcomes of betting matches. The opportunities to make money from laying bets and backing bets are equal. It’s all down to your betting patterns. For a more detailed understanding of Betting Exchange Trading, be sure to check out our related article on the topic.

Peer To Peer Betting

Like brokering services, the exchange provider makes their money through small commissions. Betting against another person with contrasting opinions is as old as time. After all, we’ve all bet a friend that our team will be theirs when they play against each other. However, the idea of doing this in a professional and legitimate betting arena is naturally one that has only been made possible thanks to online betting.

After years of rapid growth, the exchange betting arena is now a fully-fledged part of the industry. Millions of people have already discovered the benefits of using the exchange over bookmakers. Frankly, now is the time for you to join the revolution.

We’ve all heard the old phrase that the bookies always win, and it’s true. The sports betting industry generates billions of pounds yearly and continues to grow rapidly online and among high street bookmakers. While that doesn’t mean individual bettors are incapable of generating sustained profits, it underlines that the house always wins overall. And that’s largely due to the house edge.

Essentially the advantage is gained by pricing. For example, if both options on a BTTS market are priced at 4/5, the bookmaker will win 1 unit for every 10 units bet on this market (assuming it’s split down the middle).

• Person A bets £5 on BTTS @ 4/5
• Person B bets £5 on BBTS @ 4/5

Whatever happens, the bookmaker will pay out £9 after taking £10 in total.

Of course, not all markets will attract bets right down the middle, but the bookmaker traders price their markets accordingly while they’ll use their own trades too. So, even if you are winning, the fact that the odds are stacked against you before you even make your first bet can be pretty daunting, even if it is certainly possible for smart punters to make money with a bookie.

Given that the exchange works by taking a commission, the odds are back in your favour. That has to appeal to any punter, regardless of whether you wish to back or lay.

Essential Exchange Betting Terminology

Whether you’re a complete novice, an experienced bettor looking to add exchange betting to their arsenal or making the switch to a betting exchange, it’s vital that you understand the basic betting rules. Additionally, you need to understand these terms:

Commission: A small percentage of winnings taken by the betting company.
Matched: This indicates that another user or users have taken the bet.
Unmatched: Nobody has taken your bet, meaning you will not win or lose anything. (It’s very rare for Premier League exchange betting).
Partially Matched: Part of the bet matched. Remainder waiting for a match.
Backer’s Stake: The amount of money you stand to win when laying a selection.
Liability: The money you stand to lose if they win.

Which Events & Markets Are Available?

The growth of the industry has encouraged rapid developments regarding market availability. While Premier League exchange betting (See our guide) remains the most popular option, it is possible to back or lay outcomes in various other leagues, including minor ones. Moreover, there are several markets available, ranging from straight match results to correct scores and handicap lines.

Alternative routes include goalscorers and corner bets, while both pre-game and in-play options are available. However, it would help if you remember that you are betting against someone else rather than the bookie, so it may be difficult to get your bets on when looking at the lesser known markets.

If backing a big football event, you’ll be able to match bets with very large stakes (far more significant than the upper limits imposed by most bookmakers). This works wonders when you have a high stakes staking plan in place.

Bet Or Trade?

A betting exchange allows you to control your betting journey with far greater authority. Aside from having the opportunity to lay outcomes as well as back them, you also have the chance to utilise various techniques through standard betting or trading.

There’s no right or wrong way to bet with a bookmaker or the exchange marketplace. However, the latter does offer a wealth of options for fans of backing and laying.

Here are three that could open the door to sustained profits and steady ROIs.

1. Finding low-risk odds-on selections that are available on the exchange for far higher prices. Taking a 1.07 selection may not feel worthwhile, but if it’s a 1.01 certainty with the bookies, this signals a 7% interest (minus commission) for virtually no risk.
2. Laying high odds selection that will never happen. You could offer someone odds of 201.0 on Millwall to win the cup. It’s never gonna happen. Just remember that this can include very high liabilities, so make sure you only lay bets that have no chance of materialising.
3. Laying a favourite using a staking plan like Fibonacci until that team fails to win. It will happen sooner or later, while the lack of upper stake limits stops you from falling victim to this issue.

Another option is to take betting out of the equation entirely. As already mentioned, picking winners is only one aspect of a winning strategy. Timing is a far more critical, and striking at the right times can open plenty of new opportunities where you “green up”. You win money, much like the bookies, regardless of what happens during the event.

Here are three great ways to make it happen.

1. When noticing that odds on a selection are increasing/decreasing with the bookmakers, exchanges are often slow to catch up. Betting before that movement occurs will allow you to guarantee profits by covering the opposite choice once the market reflects the same as the bookies.
2. Back ‘Unders’ on the goal markets or a team on the plus handicap before cashing out for a profit after a few minutes of no goals.
3. Combine the bookmaker and exchange betting by backing an outcome at high odds on the former before laying it on the exchange marketplace.

Whether using it like a standard bettor or trying to guarantee profits from trading on the exchange, the options are plentiful. We’ll discuss those in greater detail later in our guides.

Why Betting Exchanges are the Future

By now, you should see that exchange betting is bigger and better than ever. It offers opportunities that aren’t available to standard bookmakers. As such, joining a betting exchange can become one of the greatest weapons in the pursuit of profit.

Build upon this platform with strong bankroll management and betting strategy for greater returns than ever. In truth, positive results will be reflected in your profit and loss spreads far sooner than you ever imagined.