Sports Betting

What is a Betting Exchange with Pros and Cons

Do you know what is a betting exchange? It is increasingly popular and attractive for many bettors as they differ from the classic online betting site offered by the bookmakers. Some bettors can get away from the betting exchanges and lay betting as the concept is a bit overly complex. 

However, they are the best way to get the best odds on sports betting and give yourself the best winning chance. This article will explain betting exchanges and the basics of how to use them to get the best winning from your bets. 

Betting Exchange Explanation

What is a Betting Exchange Actually?

For those of you who are wondering what is a betting exchange, it allows bettors to bet against each other rather than a bookmaker. Bettors can offer odds to, or request odds from, fellow bettors. Where the classic bookmakers risk going head-to-head with bettors on markets, a betting exchange will take in no risk at all. 

Instead, a betting exchange offers the platform for its bettors to match bets against each other and takes small commissions on the winnings. Well, betting exchanges are becoming an increasingly important part of the gambling international landscape. 

In many cases, betting exchanges offer bettors much better odds, more transparency, and an experience that feels obviously fairer. Moreover, an exchange will allow bettors to place both BACK and LAY bets, locking in guaranteed winnings as one event unfolds. 

If you don’t like the odds available at the bookmakers, you can even set your own odds. 

How Does a Betting Exchange Work for You?

After understanding what is a betting exchange, you must also be curious how it will work. The big difference with exchanges compared to the bookmakers is they will allow lay betting. It means backing an option to lose rather than win. 

Each bet placed on a betting exchange includes two bets really: one bet backing the option to win, and a second bet backing the similar option to lose. For example, if you want to place a MYR 10 bet on a horse betting to win at 10/1 that will return a winning of MYR 100, you need someone else to risk MYR 100 at 1/10 to win MYR 10. 

This option to lay a bet makes it easier for bettors to guarantee a return if the odds shorten after they have placed their bet. Where backing a horse with a bookmaker will require you to back another horse in a race to “green up”. 

On a betting exchange, you can back your option to lose after the price has shortened to lock in a winning. So, you already know what is a betting exchange, right?

Why Should You Use a Betting Exchange?

There are many advantages to using an exchange instead of a bookmaker. From the explanation of what is a betting exchange, it offers a better choice for bettors. 

Before, if a bookmaker was not willing to risk the odds or the stake you wanted, you simply can’t have your bet. With an exchange, you only need to find another bettor willing to take on the risk, or to play your bet. This will allow bettors to find odds and markets they want.

Furthermore, the value for bettors will usually be better on an exchange. To make a winning bet, the bookmakers don’t offer the “true” odds on an option, rather take a fraction off the odds of an event happening to make money. 

From what is a betting exchange, the market is not priced up by one person, however, by hundreds or thousands of bets placed by others. It means there is more pressure on layers to offer fairer prices, as if they don’t, they risk not getting their bets matched. 

Moreover, exchange will allow better flexibility for bettors to trade their positions on markets than classic bookmakers. Like the stock market, the bet value can go up or down. 

You can imagine the team you have bet on is winning, however, they have just had a player sent off. On an exchange, you can lay them to receive your bet back and possibly some winning. 

Betting Exchange vs the Bookmakers

As you know what is a betting exchange, it is quite different from the regular bookmakers, however, both have a lot to offer bettors. Here are some of the key differences of betting exchange vs bookmakers:

Betting Exchange:

  • Commission – If you win on a betting exchange, the online sports betting Malaysia site will take a commission of your winnings. The commission takes around 2 – 8%. 
  • Best Odds – You can set the odds from the explanation of what is a betting exchange. You can also find a bigger chance for winning than taking odds from the bookmakers. 
  • Back & Lay Betting – Bettors may place bets against each other, with one player specifically choosing an outcome and the other opposing it. 
  • No Offers – The promotions are rare as a betting exchange is an intermediary. 
  • No Cash-Out – Bettors must stick with their bet through to the very finish because there are no cash-out options because the betting exchanges act like an intermediary. 

Bookmaker:

  • Betting Margin – The bookmakers will make money by setting the odds, so players back both sides of an event. Betting sites usually only take the money you lose while betting. 
  • Balanced Odds – The bookmakers of what is a betting exchange provide balanced odds to make sure bettors back both sides of an event. 
  • Bettor vs the House – Bettors will bet against the bookmaker.
  • Offers – The bootmakers usually provide bonuses like free bets and boosted odds to keep betting exciting. 
  • Cash-Out – Most bookmakers will offer a cash-out option, letting bettors close the bets early to take a smaller winning or cut a loss. 

Pros and Cons of Betting Exchanges

While the differences of betting exchanges offer many benefits, you should also remember there are some disadvantages from this term:

Pros:

  • Best on Market Odds – As you are betting against other bettors, the betting exchange is not a risk of losing money. It means you will find much higher odds 
  • Lay Bets – Bettors can bet on a result simply not occurring rather than betting on something specific 

Cons:

  • Matching Bets – Finding a match for a bettor bet can be challenging of what is a betting exchange, especially if he is betting on a niche sport 
  • No Offers – As you already know, betting exchanges don’t often offer bonuses for loyal players 

Final Words

In conclusion, what is a betting exchange very similar to the classic bookmakers. However, their main differences are a big advantage to matched bettors in particular and they play a main role in winning the matched betting.

Admin

Garuda Casino is the Malaysian independent online gaming authority, providing trusted online casino news, guides, reviews and information.

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