Since the advent of the internet, online gambling has exploded, and betting exchanges have been at the forefront of the online betting revolution.
The ability to bet on an exchange has opened up a whole new world of opportunity for the traditional sports bettor, nothing more than matched betting, the easy way to make tax-free profits. Betting exchanges are betting platforms that allow and even promote individual betting. Members bet with each other or accept bets offered by other members.
Why Use Betting Exchanges in 2022?
Here are a few reasons why using a betting exchange in 2022 makes sense.
- Betting exchanges charge a commission, up to 5%, on trades carried out on their platforms. Therefore, they can offer a low cost of entry for better-informed participants.
- You can make better-focused bets against players, so exchanges offer almost 100% pounds on many sporting events, meaning you have fairer odds than online bookmakers would offer.
- Bet exchanges have in-play betting, which can lock in profits mid-play and fluctuating odds similar to binary financial markets.
- Betting exchanges are the reason matched betting is so popular today. The ability to make selections allows one to take advantage of betting promotions.
What’s the deal with betting exchanges?
The fundamental difference between a betting exchange and a regular bookmaker, as previously mentioned, is that you wager directly against other participants on an exchange, meaning that any bet placed on a betting exchange involves two types of players.
The bettor that places the ‘back’ bet is the first. Selecting an outcome and choosing a stake is the same as placing a wager with a traditional bookmaker. The second sort of bettor is the one who ‘lays’ a wager.
Laying a wager means wagering against a particular event.
To better comprehend this, consider a football match featuring Real Madrid and Barcelona in which you believe Barcelona will win.
You can make a wager on Real Madrid not to win instead of backing Barcelona to win. On an exchange like this, your stake is matched by another player.
How to lay a bet?
It is important to understand liability to fully understand lay betting, i.e., how much it will cost you if your bet loses. Unlike a traditional back bet which risks losing the stake placed with a bookmaker or exchange, lay bets can risk a lot more because the stake entered is the amount the layer is willing to accept at the odds offered.
For example, placing a bid of $10 with odds of 6.0 (5/1) results in a liability of $50. $50 is what the backer could win to match the lay bet while the layer is set to win the £10 return bet.
To place a lay bet, select the lowest odds in the Lay section, enter the stake, and the dialog will show the liability. Once confirmed, the bet is matched. As with return bets, any unmatched part of the lay bet is queued until someone accepts the bet.
If the lay bet succeeds, the separated funds are returned with the backers’ stake, minus the commission on the winnings. The liability minus the commission is transferred to the funder’s account if the selection wins.
How to back a bet?
Placing a back bet on any betting exchange is not difficult. Click on the best odds available in the Back section and enter the required stake. A dialog will appear asking you to confirm the bet. Once confirmed, the bet is matched as long as there is sufficient liquidity (the amount available to be matched at the odds selected). Otherwise, the bet is partially matched, and the remaining stake is offered in the lay section until someone comes and accepts the bet.
How do bet exchanges make money?
The primary source of revenue for betting exchanges is a tiny commission on winners. The actual amount varies depending on the transaction, but it is typically between 2% and 5%.
With the obvious advantages of bet exchanges, betting exchange is something you should look into if you want to get serious with betting. It is especially important with the 2022 FIFA World Cup games just around the corner.
This is a paid guest post.