Betting exchanges allow lovers of the game to make wagers in a way that is a little different from what has become customary with regular sportsbooks. However, it can take some getting used to, even for seasoned gamblers. Continue reading to find out the meaning of a betting exchange, how they compare with your everyday bookies and how you can get started.
What’s a Betting Exchange?
Simply put: Betting exchanges are similar to your regular sportsbooks. They give you a market where you can place bets on selected games. You win your bets when you predict the accurate outcome.
However, unlike the sportsbooks where the odds are fixed already, betting exchanges do things somewhat differently. It’s still the same marketplace to place odds, except, this time, you can buy (back) and sell (lay) the outcome of a game, and do some live trade while at it. The upside is that it offers more, especially when you get to determine your odds. However, your bet will not be confirmed until someone else agrees to the opposite of your wager.
For your bet of Djokovic, for example, to win the match at a particular odd to become accepted, another punter must be willing to match those odds for the opposite bet. Which brings us back (no pun intended) to “back” and “lay” bets.
But what do these bets actually mean? A back bet is simply a wager on an event. It means you are sure this event will happen. A lay bet, however, means you’re going against what the results of the first option.
That’s the simple arithmetic behind it.
Additionally, the more people rallying behind a team, the shorter the odds become. On the flip side, if a bunch of individuals are hedging their bets, looking for an upset, the odds go higher.
With betting exchange, it’s all about the ebb and flow of bets. It’s the punters who wield the power to influence the odds. The odds are not stationary like you’d find with bookies.
There are several advantages to choosing betting exchanges over normal bookies, these include the chance to choose your odds and a greater payoff if your wager is successful. While it promises plenty, it is not without its risks and it is important that you only consider betting exchanges reviewed by experts when making your decision, just like you would a normal bookie.
Is Betting Exchange Any Better Than Bookies?
A Betting Exchange is where the overround—the total percentage of every runner’s odds—is always close to 100%. It’s the ideal balance, like a coin flip where heads and tails each have a 50% chance (2.0 odds), making the overround a perfect 100%.
But bookmakers don’t play by this rule. Typically, they set odds with an overround ranging from 130% to 140%. That’s like flipping the coin, but instead of getting the fair 2.0 odds, you’re handed a measly 1.83 (35.34%). Suddenly, the odds available only add up to 70.68%, and the bookmaker is pocketing just under 130%.
So if you want the best odds, you can not get it wrong with a betting exchange. But with this much power, comes great responsibility—sometimes too much responsibility. The fact that betting exchanges allow people to choose their odds often means that people could put up bids that no one would consider, basically making such wagers null.
Another problem is the fact that people can not layer their bets and place multiple bets on the same game. This, coupled with the fact that it takes more thinking to set up your bets than common bookies, is why people are likely to remain loyal to their tested and trusted bookmakers.
How Do You Get Started?
Okay. So, you’re interested in getting into the betting exchange market now and you want to know how to sign up.
It’s pretty close to how you’d join normal bookmakers. If you check online, there’s always an array of betting exchanges out there.
Now, they’ll ask for a bit of information—pretty much your personal and financial info.
The next step is to make a deposit. Pro tip: check if there’s a magic number to hit for that sweet welcome bonus. And, of course, dive into the terms and conditions before scooping up any incentives.
Once you’ve joined the betting exchange party, it’s time to place your bets.
