BETTING EXCHANGE TERMINOLOGY (A-Z)

Your A-Z guide for the terminology you will encounter when using Betting Exchanges:

Arbitrage
The ability to back an outcome at one price, whilst being able to lay the same outcome at a lower price, thus ensuring profit whatever the result.

Available Balance
The amount of money that you have available to bet/withdraw. Your Available Balance is calculated using the following equation: (account balance) – (exposure).

Back
When you back a selection, you are betting that it will win. This is betting the traditional way.

Bet Exchange
A system which allows members to make bets against other members.

Betting Coupon
A Betting Coupon is a group of markets with the same bet type displayed together on the same page. A Betting Coupon allows Betting Exchange members to quickly view prices and place bets across multiple markets.

Cancelled Bet
An unmatched bet that has been removed from the Betting Exchange.

Closed Market
A market in which betting is no longer offered.

Commission
The ‘charge’ taken by the Betting Exchange for supplying the service for bettors to exchange bets. Commission is only ever charged when bettors make a profit on an individual market. It is charged on a sliding scale, meaning the more you bet, the less commission you will pay.

Decimal odds
Includes stake money as part of the return. To calculate digital odds: Traditional Odds plus 1 = Decimal Odds. For example, 9/4 = 2.25 + 1 (stake) = 3.25

Event
A match, race, or tournament

Exposure
The amount that you have at risk in unsettled and unmatched bets.

Fractional Odds
Also known as traditional odds, odds that are not stake inclusive.

Hedge
The covering of a bet with a second bet that offsets or reduces your potential losses.

In –running
See Live Betting

Lay
When you lay a selection, you are betting that it will not win. In this instance, you assume the role of the Bookmaker.
If the selection does not win, you receive the Backer’s stake. If the selection wins, you pay the Backer the stake multiplied by the relevant odds.

Listed Pitchers
In Baseball wagering, a bet that is placed only if both Pitchers scheduled to start a game actually start. If they don’t start, the bet is cancelled.

Live Betting (In-running)
A market in which activities relating to the event are currently occurring. Betting Exchanges have a wide variety of Live Betting (In-running) markets.

Market
A betting opportunity within an event.

Matched Bet
Matched bets occur when both the backer and the layer have matched the odds and amounts for a bet on the Betting Exchange. The Betting Exchange automatically links these two opposing bets, and they become matched. Once a bet is matched it cannot be amended or cancelled by the Betting Exchange member.

Maximum Market Rate
The maximum commission rate charged in any market. Also referred to as MMR.

Minimum Bet
The minimum amount that Betting Exchange members can bet.

Open Market
A market on which Bettitng Exchange members can bet.

Part Matched
Bet offered by a Betting Exchange member that has been only part matched by other another member(s)

Place Market
A market allowing Betting Exchange members to bet that a selection will be placed. The number of places depends on the place terms.

Reduction Factor
The percentage odds the horses in a race will decrease by if a runner is removed from the race. Similar to Tattersalls Rule 4.

Settled Market
When a market has closed and the wins/losses have been credited/debited from Betting Exchange members’ accounts.

Stake
The amount risked on a bet.

Suspended
A market which is temporarily unavailable for Betting Exchange members to bet on.

Unmatched
A requested bet that has not been matched by another Betting Exchange member(s).

Value
A bet that offers perceived generous odds in proportion to the probability of the desired outcome.

Find out more information in best free bets’ Betting Guide

BETTING EXCHANGES EXPLAINED

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

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