BACKING, LAYING and TRADING EXPLAINED

As a member of a Betting Exchange you will be placing bets with other members of the exchange and you have the option of Backing a selection you think will win or Laying a selection you think will lose. When you first join a Betting Exchange it is advisable to try it out using small stakes, while Exchanges are easy to use, it also easy to make a mistake when you are more familiar with the lay out of online bookmakers’ websites.

For example the odds are written in a decimal form and you will be presented with more than one option, since you can Back or Lay – you’ll be disappointed to find you have Layed a selection you intended to Back, since there is no turning back once your bet is matched.

Backing Explained

A ‘Back’ bet is a bet on something to happen – a horse to win a race, a football team to win, a person to be evicted from X-Factor etc. It’s just like the bet you’d regularly place with a traditional bookmaker or tote, or even with your mates.

In the example above, you want to back Rail Link for £10 at a price of 10.5. If the bet is submitted and matched, you stand to win £95 (£10 at 9.5/1) less commission and plus your stake returned. You stand to lose £10 (your stake).
You can change the price you’re looking for by typing in a different price or clicking the arrows next to the Your Odds box.
Be aware, Betting Exchange markets are dynamic, the prices can move at any time. Also if you change your price from what is currently available, you take the risk of not having your bet matched.

Laying Explained

Laying a bet means you are betting on something not to happen – a match not to end in a draw, a horse not to come in first, a cricket player not be the highest scoring batsman etc.

In the example, you’ve chosen to lay the USA at the current odds of 2.52. Note that on the left hand side, your potential loss (liability) is shown as £15.20 but on the right the figure is £25.20. This is because your counterparty's stake is included in the Payout figure, as each Betting Exchange member must ‘pay’ for their bet first with the money held aside from their account until the market and each bet is settled.

Trading Explained

Trading is one of the best and most unique things about Betting Exchanges. Trading is having more than one bet in a market; seeking to improve your position or lock in a profit on all possible outcomes.

In the example above, you have Layed a selection first, and then backed the same selection soon after at a higher price, guaranteeing a profit whichever result occurs.
Below the name each runner you can see the profit you will make from the race if that selection wins.

Find out more information in best free bets’ Betting Guide

BETTING EXCHANGES EXPLAINED

ADVANTAGES OF USING BETTING EXCHANGES

HOW TO CHOOSE A BETTING BETTING EXCHANGE

HOW TO OPEN AN ACCOUNT WITH A BETTING EXCHANGE

BETTING EXCHANGE TERMINOLOGY (A-Z)