Beginners Question ➔ Betting exchanges like Betfair have always confused me a bit. Is there an easy way to explain what its all about?
Answer ➔ Now you can be the gambler, or the betting shop.
What Is A Betting Exchange? ➔
The betting exchange is a platform that allows people to bet against each other, rather than against a bookmaker.
It’s a marketplace for betting, where u can either back (bet for), or lay (bet against), an outcome where you think you may know what's going to happen, or not happen.
Key Concepts Of The Exchanges - Trading ➔
>> Back Bet (Betting For Something to Happen)
Bakcing is the traditonal way of betting where you predict that someting will happen, or will win.
For example, in a horse race, you might back a horse to win. Youre betting that the horse will win and if it does, you win your bet.
>> Lay Bet (Betting Against Something to Happen)
This is where betting exchanges differ from traditional bookmakers. You can lay a bet, or two, or more, which means you’re betting against something happening or winning. You could maybe back your own horse to win and lay the rest. Chaiwallah stuff if you can pull it off.
In a horse race, you might lay horse(s). This means you’re betting that the horse(s) will not win. Youare offering a bet to someone else. If the horse(s) loses or doesn’t win, you win the bet.
Trading = Backing Or Laying
As you can now see, this is a two way trade off. You are now trading on the exchange platform.
Example Of How Trading On The Exchanges Works ➔
Backers want something to happen (like a team winning, a horse coming first, etc.).
Layers want that same thing to not happen. They’re esentially offering a bet to backers, saying "Ill take your bet and ofer you odds if you think this will happen."
For example: You, as a backer, might bet £10 on a horse to win at odds of 5.0.
Someone else, as a layer, might offer to take your bet, saying "I’ll bet £10 that the horse doesn’t win."
If the horse wins, the backer wins and the layer loses. If the horse doesn’t win, the layer wins and the backer loses.
Why Are Exchange Trades Different from Traditional Betting ➔
- Traditional Bookmakers
> In traditional betting, you’re always betting against the bookmaker. They set the odds, and you either win or lose based on those odds. - Betting Exchanges
> On a betting exchange, you’re trading, ie betting against other people. The exchange just facilitates the betting trade by matching backers and layers, and takes a small commission (typically 2-5%) on any winning bets.
Benefits Of Betting Exchanges ➔
>> Better Odds >> Since you’re trading, or betting, against other people, the odds on exchanges can often be better than what you'd get at traditional bookmakers. There’s no "house edge" like in traditional betting.
>> Flexibility >> You can lay bets (bet against something) as well as back them. This opens up more ways to trade, or bet, and gives you more control.
>> Betting Markets >> Exchanges often offer markets on a wide variety of sports and events, including some niche markets that may not be available for punters with traditional bookmakers.
>> Example Scenario >> Imagine a football match between two teams, Team A and Team B. You might back Team A to win at odds of 2.5 (if Team A wins, you’ll win 2.5 times your stake). Another user on the exchange might lay Team A to win at those same odds. There betting that Team A will not wnin (so either draw or lose).
If Team A wins, you, the backer, win th bet and the layer loses. If Team A doesn’t win, you loss and the layer wins.
Exchange Trading In Summary ➔
- Betting exchanges let you trade/bet/wager/punt against other people instead of against a bokmaker.
- You can back an outcome (bet for it to happen) or lay an outcome (bet against it happening).
- The exchange matches bets, takes a small commission and offers better odds than traditional bookmakers.
#Sandracer note: Of course, this is a quick glimpse for beginners to trading into what really goes on at the exchanges like Betfair or the Ladbrokes owned and lesser known Betdaq.
If you want to start laying things to lose, trading can end in tears, just as quickly as trying to find a winner at your traditional highstreet betting shop.
If you think you may be interested in a play it or lay it deep dive, I suggest you bowl along to see what you can learn from Pro Trader Caan Berry at his excellent website.
#page description: the aim of this page is to provide punters with a beginners guide to betting exchanges.
#page last update: Wed Jan 8, 2025
Related Information Page: Official Betfair Exchange Terminology Glossary ➔
Labels: UK_Betting_Terminology
