What is a Betting Exchange?
Betting exchange is a relatively new form of bookmaking and it could be the future of online betting since both the bookmaker and its customers can make bigger profits than with the conservative style of betting. It is also known as a player to player betting since the bookmaker only serves as a mediator between the players from either side of the market. This kind of betting offers many advantages to bettors and it is no wonder it has become immensely popular over the last few years.
There are basically two types of bets at betting exchanges, ‘bet’ and ‘lay’, and these terms are pretty easy to comprehend. You can either bet on something happening (back) or bet against something happening (lay). Even though a lot of bettors prefer betting exchanges because of the sharper odds and higher limits, there’s more to it than that. The first thing you should know is that the bookies charge a commission (usually 5%) on all winnings and you need to calculate that when placing a bet. The good thing is most betting exchanges have the option of showing just the actual winnings when placing a bet (minus the 5% commission).
How Betting Exchanges Differ From Traditional Bookmakers
Since the bookmakers offering this form of betting doesn’t risk anything regardless of the outcome of the match, they are in a position to allow much bigger betting limits than their competitors, as well as much higher odds, because the middle man is eliminated. There are quite a lot of options available for bettors at exchanges like Betfair, Betsson and BETDAQ, but the best way to earn money is so called trading. A trader bets on all possible outcomes of the match for a guaranteed profit regardless of the result, but obviously not at the same time. There are a couple of great ways to make profit by trading.
Betting Exchanges and How To Bet
The first things you want to search for are the games a lot of people will bet on. These are called public bets in football betting. The best way here is to back one of the favorites as early as possible, since the odds on them will surely drop once too many bettors start backing them. If you have backed a team at 1.40 and waited for the price to drop to 1.25, you can lay the same team and by doing that you will have earned quite some money regardless of the outcome. Basically, you want to back the team at the highest possible price and lay it at the lowest possible price. Nonetheless, you have to be careful to finish the trading a couple of hours before the game starts since the odds fluctuate quite unpredictably as the event is nearing its start.
Betting exchanges are just perfect for in-play betting since once the game starts, the odds move rapidly and you can earn cash every few minutes. Here is just one example to see what we mean. Before the game starts the odds on no goals in the first half will be somewhere around 2.50 and once the game starts to unfold, they will start to drop. So if you back no goals to be scored in the first half at 2.50 and wait for ten minutes (of course providing the goal wasn’t scored in the opening 10 minutes), you will be able to lay the same market at much lower odds and thus you will earn a nice profit. You can use this style when betting on corners, goals and many other markets.