|Mechanics of Betting Exchanges
|What is Lay Betting?
|Betting Exchanges Vs. Traditional Oddsmaker
Unless you are in the business of donating your hard-earned cash to oddsmakers, you are always looking for the best odds when you’re betting on sports.
If you are a fan of online sports betting establishments, finding the best odds can prove to be a daunting task.
What if we told you there was a way of cutting out the middleman? A new way of betting that allows players to bet directly against each other?
Clearly, the potential for something like this is massive. This is what betting exchanges provide.
Now, when something new and innovative comes up, it’s likely to be met by resistance – because it’s new.
That’s why we’ve created this article, to demystify betting exchanges and highlight the massive benefits they provide.
How Do Betting Exchanges Work
So, how do betting exchanges work? The easiest way to understand this is to recognize how they differ from traditional oddsmakers.
In a betting exchange, you are betting against other players.
So, each bet consists of two players, one backing and the other one laying a bet. Backing a bet simply involves selecting the desired outcome and placing a wager.
So far, this is exactly the same as what you would find in traditional online sports betting sites. But then it gets interesting.
The other side of the bet is completed by the lay player. Laying a bet is wagering against a specific outcome.
To help you wrap your head around this concept, we look at an example. Over the weekend we are looking forward to the game against Man City and Manchester United.
This is by no means a betting tip, but say you believe the smart money is on Man City. Instead of simply betting for Manchester City to come out on top, you can lay a bet on Manchester United not to win the match.
What Is Lay Betting
Let’s continue with our previous example and develop this even further.
The first thing you do when you get to a betting exchange is decided if you are backing or laying a bet.
To help you make this decision, betting exchanges have color-coded symbols that you select when you make this choice.
Next, you need to place a wager. Now, this is where you need to be careful.
The amount you select at this point will determine how much you win if your lay bet is successful. That’s the first part. But it will also determine how much you are liable for if it goes against you.
Let’s say, you lay a bet on Manchester United not to win. The betting odds you’ve got on this are 2:1. For a $10 stake, you receive $10 if Manchester city wins or the match ends in a draw.
But, if Manchester United wins the match, you are liable for two times the steak, that is, $20.
Now, before we go any further, there are two things you must take note of.
You can only accept odds that your account can fully cover. The betting exchange will take care of this, but you need to be aware of what is available to you.
It is also a frequent temptation for players to place odds that are far away from the market value.
But you need to realize that the bettors on the other side of any bets are just as cunning as you. So it’s not a given that these bets will be filled. And in the world of betting exchanges, any bet you lay that is not backed on the other side is not valid.
Betting Exchange Vs. Oddsmaker
Are there any advantages of using betting exchanges as opposed to traditional oddsmakers? Yes, there are.
Betting exchanges allow you to lay bets. This is a feature that you will not find anywhere in traditional online sports betting sites. So that’s the main advantage.
If you look at the numbers, you also realize betting exchanges always have better odds. It’s easy to see why. Online oddsmakers factor their commissions and profits into the prices. Now, by using betting exchanges, you are sidestepping all these other fees, leading to greater savings.
If you take the time to learn how to use betting exchanges properly, you see there’s no better way to bet on sports than this. It’s not uncommon to find experienced players with strategies that guarantee profits. Yes, profits are guaranteed. Some techniques you may want to consider include laying off bets or arbitrage betting.
Not many players will experience this challenge, but it is easier to place large bets in betting exchanges than in traditional online sports betting sites. Traditional oddsmakers have limits on the amount they can accept on any bet. They do this to protect the downside and not go bust if a huge bet wins. So, there’s a lot you can get away with on a betting exchange.
It’s easy to paint a rosy picture when there’s so much good stuff to talk about. But, betting exchanges have some drawbacks.
For instance, to lay a bet you need another player on the other side to back it. So, there are no guarantees that you will find such a player. As we’ve mentioned earlier, bets that are not backed are not valid.
Betting Exchanges Profits
If you’re betting directly against other players, how does the betting exchange make its money? Good question. Normally, betting exchanges make a small commission from all winnings. This is not much, it’s usually in the region of 2 to 5%.
It is important to consider this commission when backing bets on betting exchanges. A quick comparison must be made before committing to any site
Exchanges In The UK
Your success in laying or backing bets online will also depend largely on the betting exchange you use.
In our experience, the Betfair exchange provides the greatest chances of success.
Established in 2001, the Betfair exchange came online as a result of a merger between two older exchanges.
Since then it has provided players in the UK with a reliable and safe, betting experience. One of the key aspects we look at when vetting betting exchanges is liquidity.
The Betfair exchange is the oldest provider on the block and has a lot more players and funds floating around. It’s easier to match your bets here than anywhere else.
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