Online Betting Exchanges
Betting exchanges are similar to traditional bookmakers, but this is a platform where bettors meet to bet against each other. All you are required to do is match your bet with another person by taking their odd (backing) or offering a price to another person to take (laying). The operator in the betting exchange matches people, similar to how a dating site does. Most people refer to exchange betting as peer-to-peer betting, which describes how the system works.
Many thought that this new mode of betting would drive plenty of online sportsbooks out of business, but this has not been the case. Most of the bookmakers are still in business. Most of them have taken a smarter route, where they have introduced exchange betting to their products.
Betfair was one of the first online bookmakers to incorporate an online betting exchange into its products. This has given bettors a choice between traditional betting on the site and online betting. You can make a bet using the odds provided, make a live bet, or go to the betting exchange and take or lay a bet.
Basics to Online Exchange Betting
A betting exchange matches people who want to take opposite sides to a wager. The exchange acts as a middleman between someone betting on a selection to win (backer) and someone else betting on the same selection to lose (layer). This layer acts as the bookmaker by taking the backer’s stake and agreeing to pay out if the selection wins at the prevailing odds. UK sports books online do well in this role, must to the advantage of the player.
- Backer: The backer pays the initial stake when he is backing the selection. He will receive the payout if the selection wins along with their initial stake.
- Layer: The layer will pay the potential payout when it is on the selection. They will receive the stake from the backer if the backer’s selection loses along with the potential payout.
How Online Betting Exchanges Work
Online betting exchanges work similarly to betting sites. The only difference is that another bettor will take the money you use on the online betting site. You will realize that there is a difference in how the odds are agreed upon. With a betting site online, you take on the odds already published, but in a betting exchange, you choose the odds and place a bet on the agreed odds.
You can submit a proposal with a wager and odds that you want, and if they are suitable, a layer will take the terms, and your proposed stake will be deducted from your account. You can also take a wager that already exists that has been proposed by a layer if you think the terms are in your favour.
Advantages of the Online Betting Exchanges
Compared to sportsbooks online, online betting exchanges have two major benefits. One of these benefits is that you can place a bet for a bettor to lose their bet (lay). This is something that you will not find in a traditional betting site. Another benefit of playing with betting sites is that you can offer odds-to-back selections.
This being the case, you will usually find better odds in online betting exchanges than you would find in sportsbooks. They also will offer you a number of sports betting bonuses that can be accessed, whether worldwide or specific to UK betting sites for example.
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