Betting exchanges have emerged due to the fact that the internet has the ability to link people together from all areas of the world. In doing so online exchanges have revolutionised the betting and gambling world.
Exchanges are the key tool in making money from refund offers without the need to risk your own money.
In a betting exchange there is no bookie, the betting exchange provides the facility for people bet with each other – ‘person-to-person’ – and the exchange acts as the middle man providing the facility for people to trade with one another, taking a commission on the net winnings of a bet as a way of charging for the service. People then have the option to ‘back’ (which is the same as placing a bet at a bookie) a certain event. They also have the option to ‘lay’ an event, effectively becoming the bookie, by offering odds to someone else. ‘Laying’ an outcome is effectively ‘backing’ it not to win, or in other words betting an event will not happen.
For example, if someone thinks Team A will win a competition, he may wish to back that selection. A bookie offering the punter that bet would be laying that selection. The two parties will agree the backer’s stake and the odds. If the team loses, the layer/bookie keeps the backer’s stake. If the team wins, the layer will pay the backer the winnings based on the odds agreed.
Another attraction that the betting exchanges have over the traditional bookie is that people can ‘lock in’ profits on the exchange. For example if a punter backs an event early at odds of 10/1, but then nearer the start of the event the odds have shortened to 5/1, the punter can lay the bet at 5/1 guaranteeing a profit.
This again is also useful with bookie refund offers as once you qualify for a refund offer by ‘backing’ and ‘laying’ an event if the event occurs during the match you then have the option to lock in a profit (effectivly trading) on the current position. This can be an alternative to letting the bet ride with the hope the result will stay the same.
Exchanges make their money by charging a commission which is calculated as a percentage of net winnings for each customer on each event, or market. People whose betting activities have traditionally been restricted by bookies (normally for winning too much money) or arbing (a process of finding value in a bookie bet then laying an out of line price at the betting exchange in order to make money regardless of the outcome) have found these sites to have endless possibilities since they are now able to place bets of a size unrestricted by the exchange – the only restriction is that one or more opposing person need to be willing to match their bets.
The current main Betting exchanges available are as follows:
The above is the order in which we would recommend using due to the volume and liquidity of money available and range of markets.