BETTING EXCHANGES EXPLAINED

Betting Exchanges differ from traditional bookmakers by allowing its customers to place bets directly against each other. The Betting Exchange acts as a facilitator providing the software and matching the bets of individuals with opposing views.

Betting Exchanges do not set the betting odds, these are determined by the individuals using the Betting Exchange to offer odds on the markets provided on the Exchange. In this way and unlike the online bookmaker, the Betting Exchange takes no risks, it charges a commission to its customers which is taken from the wining side of every matched bet placed on the Exchange.

This phenomenon is relatively new and has grown increasingly popular over the past few years as Betting Exchanges have revolutionized the gambling industry, first in the UK and now growing in America and around the world.

Betting Exchanges work by matching the bets of customers who wish to bet on an event and have opposing views on the outcome of the event. To do this, Betting Exchanges use state of the art technology to display the odds offered to back or to lay by each individual and allow the matched bets to be transacted securely in real time.

To understand the principles of betting on an Exchange you need to understand the terms to Back and Lay, you Back on an outcome you think will win and you Lay an outcome you think will lose.

From here, betting on a Betting Exchange is fairly simple; when you want to Back, first you decide what you wish to back on, then you specify how much you are willing to bet and the odds you wish to accept.

Laying a bet works pretty much the same way, you decide which selection you want to Lay, then specify the odds you wish to offer and how much you are prepared to lose.

The Betting Exchange will match your offer with another customer or customers who are prepared to Back or Lay at your odds. If you win, the money will be transferred directly into your account and you will pay a commission on the winnings. It is only the winner that pays commission to the Betting Exchange.

Find out more information in best free bets’ Betting Guide

ADVANTAGES OF USING BETTING EXCHANGES

BACKING, LAYING and TRADING EXPLAINED

HOW TO CHOOSE A BETTING BETTING EXCHANGE

HOW TO OPEN AN ACCOUNT WITH A BETTING EXCHANGE

BETTING EXCHANGE TERMINOLOGY (A-Z)