What is a betting exchange?
If you know how to play bingo online, you know a relatively recent innovation in the gambling industry betting exchanges is disrupting conventional betting giants while democratizing the punting experience. Today, bettors realize the superior value inherent in bet exchanging platforms – the flexibility to trade position as the events unfold, and the opportunity to set personal odds for each wager placed – are some of the incentives that make these exchanges attractive. For someone wishing to transition from the traditional bookmarkers to exchanges; here’s everything you need to know about this new betting marketplace.
First, what is a betting exchange?
A betting exchange is a hub that enables bettors to bet against each other instead of a bookmarker. A critical feature of this platform is that members can set their odds and or request for odds from other betters. Also unlike the traditional betting sites where users have to back only a specific outcome, an exchange provides options where the bettors can either back or lay an event.
For first time users of a betting exchange who are used to the conventional platforms, it is usual to find the new platform a bit tricky, however, once they get the hang of it – it becomes instantly apparent this new platform is far superior and valuable than what they are used to in the past.
So, how does a betting exchange work?
Think of the exchange as a marketplace where users bet against each other. Now what happens is that, a user decides which event to either back or lay, then sets their odds. The system automatically matches them with other users who took the opposite of their position. Take, for example, player A bets that horse A will lose a race and sets his odds. The system will then match him with player B who wagers horse A will win.
This way, the users are not betting against the bookies but other players with the exchange acting merely as a connector. The exchange makes money by taking a fixed commission most times between two to ten percent of the winnings. Also its ability to offer users the option to – bet that a particular outcome will happen – and lay – bet that a certain outcome will not happen – is one reason why it is popular among bettors.
Other ways betting exchange differ from bookmaker include:
Firstly, a betting exchange is a peer-to-peer system that enables users to either back or lay odds which is similar to selling and buying stocks at the stock exchange while a bookmaker does not allow for betting on both sides.
It is possible also to trade positions as the event goes live to maximize winnings; this is impossible with bookmakers since they stop accepting bets once a game goes live. Again, betting exchanges offer the best odds as users set their odds and the value is affected by the forces of demand and supply which in comparison with the bookmakers, players can only bet on the odds set by the bookies including their margin.
Another huge difference between a betting exchange and a bookmaker is that there are no account limits on an exchange. The amount you bet is determined by the cash available to you. However, it is a common occurrence to have account restrictions with bookmakers.
Finally, winners are welcomed on betting exchanges; this is because they make their money from commissions on the winnings, unlike bookmakers that would ban any account that becomes successful.