Betting Exchange Guide
As sports betting gains more popularity in India, new sports bettors need to be educated about some sports betting terms and techniques. Those new to sports betting in India may find some things confusing. One of such confusing things is the difference between betting with a bookmaker and with a betting exchange.
Betting exchange is not as new as many people think, even if many bettors do not know much about it. This post is to guide you through the process of betting exchange and help you get better at it.
What Is a Sports Betting Exchange?
Sports betting exchange is betting against other bettors like you. Rather than placing a bet against a bookmaker, you place bets against other bettors with the betting exchange. Betting exchange is not entirely a new concept as many people place bets against each other from time to time based on their personal opinions on a game.
Unlike usual betting sites where all you can do is bet against your bookmaker and have no option of choosing anything else, with betting exchange, you can be on any side of the bet. While a bookmaker places bets against bettors, betting exchanges do not place any bets.
They depend on the bets made by the bettors and charge a commission for the winnings. In betting exchange, you set two kinds of bets – a back bet and a lay bet.
A back bet is placing a bet to support a specific outcome. A back bet is backing a selection and the result of the selection made. For instance, if you believe your football team will win the upcoming game, you defend them. That is simply a back bet. When placing a back bet on a selection, you choose the available odds at the moment and you get paid the odds if your bet turns out successful.
A lay bet is placing a bet against a specific outcome. If you were placing a bet with a bookmaker, this is the kind of bet the bookmaker would make. Bookmakers lay bets when they take your bets.
In a betting exchange, you can either place a back bet or a lay bet. However, if you were using a bookmaker, you will only be allowed to place a back bet. With betting exchanges, you can either choose to back a selection or to go against it. All you need is someone to accept the odds you placed.
|BACK BET||LAY BET|
|Bet supporting the outcome of a selection.||Going against the back bet. Going against the result of a selection.|
How Does It Work?
There are different betting exchanges available, but they all function on the same basic principle. A betting exchange is simply a bet between two individuals. It involves placing a bet on opposing opinions. When placing bets with a betting exchange, as soon as someone accepts your odds, the game is on!
Betting exchanges have a list of selections and the odds associated with them. The betting exchange shows you the odds available for backing and those available for laying. It acts as the middleman, a platform for everyone to place their bets. Bettors choose whether to back or lay a bet and pick the available odds.
You can either back or lay already existing odds or create new odds if you are not satisfied with the available ones. The betting exchange removes your bet from your account if you placed a back bet and removes the bet plus the win amount from the person who placed a lay bet.
They sort out financial transactions required for this bet. On determining the outcome of the bet, the exchange pays out the wins to the winner of the bet. While settling the winner of a bet, the exchange removes their commission.
Why Use an Exchange?
The primary reason you should use an exchange is that you get better odds with exchanges. With betting exchange, you can place bets at your selected odds and your bets will be matched by someone who thinks taking the opposing end will work for them. You have access to a broader range of bets.
Whereas with the regular bookmakers, you have to accept the odds given, with an exchange, you accept odds you find favourable or create your own. If you place bets with ridiculous odds, you may possibly not find someone to match your odds. So, ensure that whatever odds you are about to place will find a match.
Another key reason to use an exchange is that you can place lay bets. Usually, only the bookmaker is allowed to place lay bets. However, with a betting exchange, you can be on the other side of a bet. Sometimes, lay bets end up being more profitable than back bets because the possibility of a selection ending with a positive outcome is low.
Also, with a betting exchange, you can manage your risks. You can hedge your bets to maximise the outcome of your selection. For instance, you could start by supporting a selection, but as the event continues, you find out that your decision to support might go awry (bear in mind, predictions can be incorrect sometimes), then you lay the same selection to help you break even.
With this risk management, whatever the outcome of the selection, you are positioned to earn some money, even if it might not be as much as it would be if you were able to go through with one of the bets.
Betting exchange is indeed another great way to place bets on sports. When you find out that the regular betting sites do not have odds that favour you, or you want to lay a selection, an exchange will be a good option at that point. While using an exchange, make sure you bet on odds you are willing to risk.
Needless to say, bets are bound to go wrong. Don’t forget that whatever money you stake on bets should be something you are willing to lose. Try out 4rabet betting exchange to place bets against other people!