A betting exchange is a marketplace for players to bet on the outcome of certain events, it’s just like a standard bookmaker but with some differences. Betfair is the most popular online sports betting site that offers the exchange betting service.
This means that customers don’t actually place bets directly with the bookmaker. The bookmaker connects each players with other players who want to back an opposing outcome of the sports event. So to break it down, a betting shop will offer set odds to the customer. But when you’re playing in a betting exchange, you’re exchanging odds with other players.
This means that you don’t have a bookmaker enforcing strict odds decided by a team of sports betting analyst and traders.
It’s just like you and a friend having a friendly argument in the pub about what team will win, and the betting exchange is playing the part of the impartial barman who takes the money and ensures the winner is paid fairly.
Lay betting in the betting exchange
Lay betting is part of the betting exchange, this is when the player can take on the role of the bookmaker (sort of). So the player who is taking on the role of the bookmaker is betting on something that won’t happen, they think ‘that horse won’t finish in the top 3’.
If you believe something won’t happen, but you’re not sure of what will happen, then lay betting will solve your betting conundrum. Laying bets can be a bit controversial as you’re effectively betting on the loser. If a player disagrees with your views on the race or game, then you can stand to win or lose money (as the bookmaker). When laying a bet, you can only stand to win the other person’s stake.VISIT BETFAIR
Let’s break it down further
So one person can place odds on a particular event outcome and other players might fancy their chances against those odds. For example, Mr. Smith is offering odds of 5.0 on She’s My Girl at Haydock and Mr. Jones sees those odds and fancies his chances, and so takes the bet. So Mr. Smith is saying he thinks She’s My Girl has a slim chance of winning and is prepared to pay out if it comes through. Before a bet is exchanged, the player has to indicate how much he or she is willing to risk, so if Mr Jones wants to wager £1,000 on She’s My Girl then Mr Smith must have at least £5,000 in his account before Mr Jones’s bet can be accepted.
A little more about Betfair’s Betting Exchange
Betfair ensures complete anonymity of all its players on the betting exchange. So Mr. Smith will not know that Mr Jones has taken his price and bet against him.
Betfair only accepts the wager if it is matched by another player, thus guaranteeing profit for the bookmaker. The connection between the two bets is made instantaneously using advanced technology. If a wager is very large, then the technology will match the wager across a number of bets.