The largest directory of betting bonuses

The biggest collection of free betting e-books


Betting Articles

Lazy Sports Betting Tactics
How to beat the bookies in the over-under markets
How to convert between decimal and American odds
How to get an edge in betting
How to test the credibility of a tipster`s record
Kelly criterion method
How to use Kelly Criterion for betting
How Weather Affects Sports Betting
Increase Your Chances of Winning Long Term Betting on Sports
Intermediate and Advanced Sports Betting
Common sportsbetting myths
Advices on Betting Fundamentals
Betting do's and don'ts
Choosing a staking method based on your betting profile
Betting staking plans
Value betting explained
Sports-betting- a game of numbers
Market movement in betting
Types of odds explained
European types of bets explained
American types of bets explained
Martingale Considerations in Sports Betting
In-play betting
Accumulator betting
Mobile betting
A Crash Course in Horse Racing
A Crash Course In Sports Betting
American odds versus decimal odds
Bankroll management
Money management in sportsbetting- odds, edge and variance
Basic bet types explained
Paying for Picks
Betting on winning streaks
Betting psychology- a crash course about aspiring professional bettors
Popular Sports Betting Beliefs
Do you make these 9 sportsbetting mistakes?
Does intuition have a place in sportsbetting?
Exchange betting
Randomness in sportsbetting
Fractional versus decimal odds
Home team advantage analised
How bad at sportsbetting are you?
Reasons to Keep Betting Records
How bookmakers make money
How bookmakers work
How do betting exchanges work
Should You Bet on Multiple Sports or Specialize?
How do free bets work
How does luck influence short term betting
How good are betting tipsters
Sports Betting for Beginners
How loss aversion impacts performance
How many sports to bet on
How Much Should You Bet On a Sporting Event?
Staking-one method to improve your betting
How much you should risk per bet?
How Sports Betting Has Changed Over the Last 20 Years
How To Avoid A Big Sports Betting Loss
The art of multiple betting
The history of lotteries
The value of information in soccer betting
Three careers ideally suited to betting
Tips for Better Sports Betting Results
Types of Online Sports Betting Bonuses
Understanding and managing your risk of ruin
Understanding Horse Racing Bet Types
Understanding Live Betting
Value betting is an essential skill for bettors
Ways to Increase the Percentage of Sports Bets You Win
What are drawdowns and how to manage them
What are the most common mistakes the bettors make
What are the real chances of winning the lottery?
What distinguishes winning from losing betors
What is a handicap soccer betting?
What is the Fibonacci betting system?
What is the Labouchere betting system
What is the Martingale staking system
Why do we gamble? Irrationality and overconfidence
Why patience is an essential trait for any serious bettor
Poisson Distribution: Predict the score in soccer betting
Fixed Staking vs. Variable Staking
Basketball betting: Bet types explained
7 Sure-Fire Baseball Betting Strategies
How Does In-Play Betting Work?
To Parlay, or Not to Parlay?
Wisdom of the Crowds applied to betting
CASINO ARTICLES
A Novice’s Tutorial on Casino Gambling Games
How to Gamble with Dice – Popular Dice Games and Their Variations
How Online Casinos Helped Me Love Roulette Even More
My Top Three Tips for Getting Comps in Casinos
5 blackjack stereotypes
5 Gambling Tricks You Can Only Use Online
5 LITTLE-KNOWN FACTS THAT AFFECT YOUR AVERAGE HOURLY LOSS IN A CASINO
5 REASONS CASINO GAMES ARE SO ENTERTAINING
5 Things All Casino Gambling Fans Are Sick of Hearing
5 Tips to Managing Your Casino Bankroll Effectively
The Five Most Important Tips I Ever Learned on Bankroll Management
5 Rookie Mistakes in Blackjack and How to Avoid Them
7 roulette variations probably you have never heard of
7 THINGS YOU NEVER KNEW ABOUT CASINOS
7 Ways Casino Players Sabotage Their Chances of Success
How to Tell If You’re About to Make a Mistake with Your Next Casino Bet
The 12 Types of People I Meet in Casinos – Analyzing My Fellow Gamblers
10 SURE-FIRE CASINO GAMBLING STRATEGIES THAT WORK
What I Love Most About My Three Favorite Video Poker Games
The Last Guide to Video Poker Tournament Strategies You’ll Ever Need
Baccarat and the Martingale System – Can It Work?
Is There a Gambling System That Never Loses?
Combining the Martingale System with Odds Bets in Craps
Which Bets on Which Casino Games Offer the Best Odds of Doubling Your Money?
What’s Next for Online Gambling?
Using Self-Discipline in the Casino
20 ONLINE GAMBLING TIPS
Going All-In – When to Bet It All in Poker
10 Things I Wish I’d Known About Roulette Before I Started
Who’s the Best Video Poker Player in the World
Are No-Deposit Bonuses at Online Casinos a Waste of Your Time or Worth Going For?
Are Online Casino Bonuses Worth Taking?
BEATING BACCARAT – WINNING SYSTEMS & STRATEGIES
CHOOSING THE RIGHT SLOT MACHINE
EUROPEAN VS. AMERICAN ROULETTE
EVEN MONEY CASINO BETS
Feel Confident When Gambling Online – 8 Tips to Help You Choose a Secure Site
Finding the Best Slots Online
Gambling and Poker Playing: 10 Things to Know
GAMBLING GAMES THAT ARE REALLY WORTH TRYING
HOW TO AVOID GOING BROKE AT THE ROULETTE WHEEL
HOW TO GET YOUR FIRST ONLINE CASINO SIGNUP BONUS
How to make a million playing video poker
How to Spend Your Gambling Winnings
HOW TO SURVIVE A BLIZZARD AT THE CRAPS TABLE
HOW TO WIN AT ROULETTE
How to Win Consistently at Casino Gambling
How to Win Consistently at Craps
How to Win Consistently at Roulette
HOW VOLATILITY WORKS IN CASINO GAMBLING
Is It Possible to Play Roulette as a Career (Or Even as a Part Time Gig)?
Is One Blackjack Game Better Than Another?
MONEY MANAGEMENT STRATEGY FOR YOUR NEXT CASINO TRIP
ONLINE CASINO DISPUTES
SKILL BASED CASINO GAMES: PROS AND CONS
The 5 secret joys of casino gambling
The Benefits of an Online Gambling Environment
The Best Long-Term Strategies for Playing Progressive Jackpot Slots
THE BIGGEST JACKPOTS IN ONLINE GAMBLING
THE EASIEST WAY TO LEARN BLACKJACK STRATEGY
THE HOUSE EDGE
The only roulette strategy you will ever need
The Surprising Secret to Winning at Casino Gambling
Who Takes Care of Your Safety at Online Casinos?
Why Don’t Craps Players Just Use the Right Strategy?
Why I love American roulette
WHY IS THE DON’T PASS BET BETTER THAN THE PASS BET IN CRAPS?
WHY IS THE DON’T PASS BET BETTER THAN THE PASS BET IN CRAPS?
Newsletter Subscribe for our latest offers.
Name:
E-mail:

Exchange betting

Exchange betting is a form of betting that removes the need for a bookmaker, by allowing individuals to place wagers with each other. While traditional sports betting with a bookmaker is still commonplace, the use of betting exchanges has become increasingly popular since they were first introduced online around the start of the 21st century.

In this article we explain how exchange betting differs from traditional sports betting, and look at how betting exchanges work. We also discuss the main advantages of placing wagers in this way.

Exchange Betting vs Traditional Sports Betting

The basic concept of exchange betting is very straightforward. It's similar to traditional sports betting in many ways, as you are still risking money on the outcome of an event, but there are a couple of major differences.

The first major difference is that there is no bookmaker involved. Instead, any wagers you place are with other bettors. On a betting exchange you have two main options: You can accept wagers that are being offered by others, at odds they have chosen, or propose wagers for others to accept, and set the odds yourself. We look at the mechanics of how wagers are agreed and settled later in this article.

The second major difference is that you have the choice between backing selections and laying them. Backing a selection means you are betting on it to win, while laying a selection means you are betting on it to lose. It is not usually possible to lay selections with bookmakers, so this opens up a whole new range of betting opportunities. You can make money from accurately predicting who won't win an event, as an alternative to predicting who will.

The only other real difference between the two forms of betting is in how you actually place your wagers. We'll now explain how betting exchanges work in this regard.

The Mechanics of Betting Exchanges

Exchange betting is facilitated by betting exchanges, which are basically websites where you can propose any wagers you wish to place and see the wagers being proposed by others. The different exchanges on the web all look different, as they use their own software platforms, but they all work in pretty much the same way.

Before you can use an exchange you will have to open an account and deposit some funds, in the same way you would when using an online bookmaker. You will then be able to access all the open betting markets, on various sports events, and propose or accept wagers.

The following screenshot is from an online betting exchange, and it shows a few selections from an open market on a golf tournament.

 

The blue column shows the best available odds if you wish to back the relevant selection. The monetary value shown is how much you can stake at those odds, based on the wagers currently proposed by others. So if you wanted to back Rory McIlroy at odds of 5.90 you could place a maximum stake of £125. You could also place any amount less than this.

If you chose to place the maximum stake then £125 would be deducted from your account. If McIlroy went on to win the tournament, you would receive a total return of£737.50 including your stake. If he didn't, you would lose your £125 stake.

The pink column shows the best available odds if you wish to lay the relevant selection, along with how much someone is prepared to bet at those odds. If you wanted to bet against Tiger Woods winning, you could lay a £30 wager (or any amount less than that) at odds of 16.5.

If you chose to lay the full £30, then your total potential liability would be deducted from your account. In this case the total liability is £465, as that is how much a £30 wager at odds of 16.5 would win. When you are laying a selection, you have to pay out at the agreed odds if that selection wins. If the selection does not win, then you get credited with the initial stake. This would be £30 in this example. You potential liability that had been previously deducted from your account would also be credited back.

The columns to the left of the blue column in the screenshot show other options for backing at lower odds, and the relative amounts you can bet. The columns to the right of the pink column show other options for laying at higher odds, and the relative amounts you can lay. Remember, when laying you want odds to be lower rather than higher, as your liability increases with higher odds.

If you didn't wish to back or lay at the odds on offer, or if you wanted to stake more than was on offer, then you would have to propose your own wager. You would have to decide upon your chosen selection, the odds you want to set, and how much you wish to risk. Other users of the site would then have the option to accept your proposed wager.

Advantages of Exchange Betting

The single biggest advantage of exchange betting is one that we have already mentioned – the ability to lay as well as back. This creates opportunities for making money that you simply don't have with a traditional bookmaker. In many circumstances it is a lot easier to find a winning wager when laying a selection to lose, than it is when backing a selection to win.

Another very significant advantage is that when backing selections on exchanges you will very often get noticeably better odds than you would if using a bookmaker. If you are placing wagers regularly, and winning a decent percentage of them, then the improved odds can make a huge difference to your overall returns.

The final main advantage of using exchanges is a big one for sharp bettors who consistently make money. The exchanges make their money by taking a small commission on all winning bets, so it doesn't matter to them who is winning and who is losing. A bookmaker, on the other hand, will lose money to a skilled bettor, and it is not uncommon for them to close or limit the accounts of regular winners. This will not happen at an exchange.

There are a couple of disadvantages of using exchanges too, but they are fairly minor. The biggest drawback is that you may not always be able to stake as much as you want on a particular selection if no-one is willing to take the opposing position. This is unlikely to be a major problem though, unless you are looking to regularly stake very large amounts.

It's unlikely that exchange betting will ever replace traditional sports betting, as bookmakers will always have a role to play. It is a great alternative though, and one that many bettors would benefit from using.