Betting Exchange Explained and How Does It Work?
A Betting Exchange is a facility that enables punters to bet against each other instead of betting against a bookmaker which traditional betting is all about. Unlike the traditional betting methods used in betting shops and online operators, the betting exchange allows players to act as bookies - letting them determine the odds for an event – or sit in a customer’s seat – to bet using the odds set by another punter.
As a much-scrutinised and criticised tool, the betting exchange managed to beat the odds and establish itself as one of the most popular ways of betting. Betting exchange has been introduced as a revolutionary platform at Betfair which today remains the largest name when it comes to betting exchanges.
How Does Betting Exchange Work?
Betting exchange basically puts players in control and eliminated the unnecessary burden brought by frequently tedious and tiresome betting operators. This facility does not come for free, however, and involves commission fees, which are largely reasonable, varying from 1-5% of the profit.But eliminating the idea of a bookmaker controlling your betting process comes at no cost too high and that’s the biggest advantage of this revolutionary betting platform. With them being nothing more than a ‘middle-man’ standing between you and potential profit, the betting experience and the overall feeling you get from it are more raw and natural as well.
Betting exchange works in two simple steps as it allows you to either back a bet or lay it.
Backing a Bet
By backing a certain bet, you express your confidence that a selection you make will win. But instead of betting on the odds provided by a bookmaker, you bet against another player who will, in this case, determine the odds believing that your selection will lose. To simplify, you bet against a lay bet.
If we are to assume that you want to back Manchester United to win against Liverpool at Anfield, you would normally find the value around 3/1 at the traditional betting operator. However, the odds on Manchester United can go up to 5/1 if you line up against a punter who is convinced the home side will win and is prepared to lay your bet. With Manchester United winning the game you would pocket sweet £50 on a £10 bet, which is the money you scoop away from the rival punter who laid on Manchester United.
Laying a Bet
If a player decided that a bet will not go through then he or she has the opportunity to lay the bet. What this actually means is to bet against a certain option. If you take Manchester United again and decide to bet against them to win the Premier League after a summer of heavy investments, the betting exchange offers an opportunity to sell that bet at the odds you find fitting. If you offer odds around 8/1 with an investment of £100 and no one accepts it, your bet will be annulled and you’ll get your money back.
But if a player takes you up on your offer, your bet will be matched with the exact amount of £30. If United end up not winning the league you win the buyer’s bet and scoop money from betting against a selection.
Best 10 New Bookmakers
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£30 | SIGN UP HERE |
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18+. New Players Only. Min deposit £20. Offer is a £30 free bet when you bet £10 in one single transaction, on any sports at odds of 2.00 or higher. Free bet credited upon qualifying bet settlement. Free Bet can be redeemed on any sports market and used in one single transaction. Winnings credited as cash and immediately withdrawable. Free bet expires 7 days after being credited. Free Bets non withdrawable. Free Bet stakes not included in returns. Affordability checks apply. Terms apply. Please gamble responsibly. GambleAware.org. |
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£30 | SIGN UP HERE |
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18+ New customers only. Place a £10+ bet at min odds 1/1 (2.0) within 14 days of sign-up. Get £30 in Free Bets, valid for 7 days on selected bets only. Free stake not returned with winnings. T&Cs apply. BeGambleAware.org |
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£20 | SIGN UP HERE |
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New verified customers only. Opt-in required. Deposit £20 and earn £1 of Free Bet value for every £1 staked on Bet Builders, with each qualifying stake counting towards a free bet builder reward, at combined odds of 2.0 (1/1) or greater. Min Reward: £1 Free Bet / Max Reward: £20 Free Bet. Cash in or claim within 48 hours of promo end. Free Bets expire 7 days after claim. 18+ GambleAware.org |
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£25 | SIGN UP HERE |
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New customers only. Bets placed on sports at odds of 2.50 or more to qualify. Bets must be placed 25 hours within registration. £25 free bets must be wagered on sports. Full terms below. Gambling can be addictive, play responsibly 18+ |
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£10 | SIGN UP HERE |
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18+. New GB customers referred by selected marketing partners only. Activate the sports welcome offer on your first deposit and opt in to sports bonuses and marketing. Deposit £10+ and place a £10+ sports bet at odds of 2.00+. £10 Free Bet credited after the qualifying bet settles. Use within 24 hours at odds of 2.00+. Free bet stake not returned. Voided, cashed-out or partially cashed-out bets do not qualify. Cash funds are used before free bets. Cannot be combined with the casino welcome offer. Full T&Cs apply. Please gamble responsibly. |
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£20 | SIGN UP HERE |
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New online customers only. Register and place a £/€5+ first bet at 1/1 (2.0)+ on sports or racing within 7 days. Get a £/€10 Tote Credit and £/€10 Free Sports Bet within 48 hours of settlement. Voided/non-runner bets don’t qualify. Rewards expire in 7 days. 18+. One per customer. Selected customers only. Full T&Cs apply. GambleAware.org. |
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£30 | SIGN UP HERE |
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*New members only. £10+ bet on sportsbook (ex. virtuals) at 1.5 min odds, settled within 14 days. Free Bets: accept in 7 days, valid 7 days on sportsbook only. 2x£5 Free Bets for Bet Builder only. Stake not returned. T&Cs + deposit exclusions apply. Bet Responsibly. GambleAware®. 18+ |
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£30 | SIGN UP HERE |
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New customers place your first bet of £10 at minimum odds of 1/1 on any sports market within 7 days of registering. Get £20 in ACCA Free Bets (2x£10 Acca Free bet (2+ selections, pre-match or in-play/live, min odds per leg 2/5 (1.4), max payout £50) . Full terms apply. 18+ begambleaware. Please gamble responsibly. |
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£30 | SIGN UP HERE |
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18+ New customers only. Opt in and bet up to £40 (min. £20) via mobile or app on any football (odds 1/1+) within 7 days of registration. Get up to £40 in free bets on selected markets, which expire in 7 days. T&Cs apply. GambleAware.org | Please gamble responsibly |
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£100 | SIGN UP HERE |
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*New UK/IE customers . Place your first Football bet as an Accumulator (minimum four selections) and AK Bets will boost the return by 25% in the form of a Free Bet up to a value of £100. 18+ BeGambleAware.org." |
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