What Is a Betting Exchange?

If you’re new to betting, you may get confused pretty easily as there are so many options to choose from. Not only that you get to use a regular bookmaker, but you may also go with the betting exchange-which only makes it a bit trickier for the entry level bidder.

Where did the idea of betting exchange come from anyway?

It was Betfair who came up with the idea of betting exchanging and the market changed forever ever since.

Andrew Black was only 35 when he thought about the Betfair Exchange, even though his professional carrier took for a turn later on.

The background in computer science, the career in software development helped Black to use his special skills in mathematics in a different way. Unable to play the stock market on a professional level, Black started to bet on horses, which only helped him gain the money for starting the trading in shares.

It was only a matter of time until Black realized that he had the opportunity to develop his passion in markets and sport betting. The knowledge in computer programming sure helped for creating the betting exchange idea.

Black met Ed Wray at some point and they both talked a lot about the lack of value on horse racing markets. Slowly, the two started to look for other people for backing their exchange idea.

It was 2000 when Betfair got launched and soon enough the Flutter.com made quite the entrance online, bringing in an impressive number of customers.

It was 2000 when Betfair got launched and soon enough the Flutter.com made quite the entrance online, bringing in an impressive number of customers.

What’s to say about the betting exchange concept?

Instead of booking against a bookmaker, the members are going to bet against each other. This is what betting exchange is all about.

Customers may give odds or even request odds from other gambler. Now that you have an idea about what is betting exchange, we can go further with the details.

Unlike the traditional betting, where the bookmakers are going to take their chances along with the gamblers on markets, in the case of betting exchange nobody is taking any risks whatsoever. As a matter of fact, the betting exchange is going to offer a platform for the customers so that they match the bets against each other, taking only small commissions on winnings.

Betting exchanges are slowly winning the global gaming landscape and it’s pretty common for it to give its customers better odds, increased transparency and insurance that everything feels fair and square.

What’s the mechanism behind betting exchange?

Another difference between the traditional betting and the exchange betting is that the last one actually allows lay betting. This ensures backing a selection to lose instead of winning.

Every single bet placed on a betting exchange contains in fact two bets: one bet backing the option to win and the other one backing the same selection to lose.

For instance, if you’re going to place a $10 bet on a horse to win at 10/1 which means you’re going to get a profit of $100, you’re also going to need someone else to risk $100 at 1/10 to win $10.

The option of the lay bet helps the customers to guarantee a return when the odds shorten right after placing the bet.

in the case of traditional betting, you need to back every other horse in a race to “green up”, whereas in the case of betting exchange you may simply back your selection to lose right after the price has shorten, helping you lock in a profit.

Why would you use the betting exchange?

There are many reasons for which you should consider trying the betting exchange. Here are some of them:

  • The betting exchange gives better choices for punters. In the case of traditional betting, if the bookie didn’t want to risk the odds or the stake you wished for, you simply couldn’t place your bet. In the case of betting exchange, you only need to find one member that is going to take the risk, laying your bet. Betting exchanges does give the members the possibility to find the odds and markets they really want.
  • This type of betting gives value to bettors as bookmakers don’t really give the “true” odd on a selection (they need to make profit!). they are going to take a fraction off the odds as that’s the only way to match their bets.
  • The flexibility is better in the case of betting exchange. Bettors can trade their position on markets, unlike in the case of traditional bookmakers.
  • The value of a bet may go up or down. Let’s say that the team you’ve bet is winning, but one of their players is going to go away. Can you be sure that they’re going to win once again? However, you may lay them to get your stake back and even get some profit.

Did the betting exchange change the betting market?

Betting exchange did change a lot the online betting world. Truth be told, Betfair was the very first betting site that let the bettors place lay bets which did re-shaped the sports betting industry. Betting exchange is the main reason for the changes of many common features of today’s online betting.

For instance, in-play betting (which we take for granted nowadays) is only the effect of exchanges that let the members give prices throughout events and not bookies, at the beginning of an event.

The cash out feature of the betting exchange is another one to mention. Customers on Betfair, for example, have always had the chance to cash out on bets placed in order to guarantee profit or to handle loss a lot better. in order to make the process a lot easier, Betfair actually added the Cash Out button. This is going to place the lay side of the bet, offering the same profit, no matter the final result of an event. Bookies offer cash out features as well, but it’s only because of the innovative feature of betting exchange.

On top of everything else, the betting exchange has become mobile and many are available as apps. Placing a bet has never been easier and you may navigate between markets, stream events live right on your smart phone and even take part at some virtual casino games.

Can betting exchange protect its customers?

Many betting exchange sites are helping their customers with various campaigns (“When the fun stops, stop!”). they even offer support and promote various messages that help the customers bet responsible and within defined limits.

Some are even developing training programs that sustain responsible gambling and help the customer outcome the difficulties in gambling.

Is betting exchange always fair?

Right from its beginning, betting exchange has been raised plenty of questions and doubts. It goes without saying that bookmakers were the first ones to talk about their worries, as they were trying to undermine the new type of betting, putting pressure on their margins.

Some also noticed the integrity issues, since it’s difficult to find out who is actually laying the bet (why not someone directly involved in an event??)

The transparency was the only policy used and it only ensured the fairness to customers. The open communication and the honesty become a fundamental part of the betting experience.

As the first company that ever used the betting exchange, Betfair still continues to be a part of multiple sporting organizations so that everyone gets access to the betting exchange and the questions about the results should be clarified.

Protecting the bidders has become a bit part of the whole betting exchange experiences and it’s pretty clear now that betting exchange is here for the long run.

RESOURCES

https://betting.betfair.com/what-is-a-betting-exchange.html
https://en.wikipedia.org/wiki/Betting_exchange