A Beginners’ Guide to Betting Exchanges

Even though betting exchanges are a less conventional way of betting, they are immensely popular with avid bettors in the UK. They are an excellent way to bet on sports, and the process is pretty straightforward.

There are no bookmakers involved since betting exchanges are a direct competitor to bookmakers and have been so since the turn of the century.

This article will provide you with an ultimate guide to how betting exchanges function. Also, since betting exchange sites can seem a bit complicated on the surface, we will make sure to clarify the way they work in this article.

Functionality of Betting Exchanges

Simply put, betting exchanges allow individuals to bet against other individuals. Together they agree on the odds and stakes by using an online exchange platform.

The first player to place a bet is ‘backing’ the bet. That means that the player selected an outcome and placed a bet. The second player is then ‘laying’ a bet. In essence, the player is betting against a specific outcome.

In short, backing a selection means that a player is betting that something will happen. Laying a selection means that a player is betting that something will not happen.

Traditional bookmakers do not allow for this type of wagering. Bookmakers are always the ones that lay the bet, and the players are always the backers. However, with betting exchanges, players have the opportunity to choose whether they will be the backers or the layers.

How Does Wagering Work?

Although there are many different betting exchanges available to players, the principle is the same on all of them. The list includes available sports to wager on and their odds. However, unlike the regular online sportsbooks, it offers an option to back and an option to lay.

Typically, players would see two sets of odds for one game — for one team to win and for the other team to win. With betting exchanges, however, there are four sets of odds available.

The colours are the same on all platforms — blue is for the available odds to back, and pink is for the available odds to lay.

Remember that the exchange serves only as the middleman here and that the players do not place bets against a machine, but rather another person. The losing player is liable to pay you on the agreed odds if you win.

The betting exchange only takes a commission out of your winnings — usually 2 to 5%. Your opponent’s initial stake will be withdrawn from their account, and your potential profit will be deducted from yours. Once the outcome is determined, the bet will be settled accordingly.

Which UK Betting Exchanges are the Best?

The largest and oldest online betting exchange, Betfair Exchange, is the leader in the industry, with over 5 million customers. Due to its popularity, it is much easier to find other players to wager against. That leads to larger bets and more significant possible profits.

Compared to other online betting exchanges, Betfair (rated 4.9 on betopin.com) has up to five times the amount of money wagered on the exchange.

Betfair’s competitors include Matchbook — not the oldest, but certainly one of the oldest online sports betting exchange sites. The site doesn’t have the liquidity to stand against Betfair and its high-rollers. However, Matchbook offers low commissions, and it considers itself to be a well-established and elite site.

Another worthy competitor is Ladbrokes — one of the world’s largest bookmakers with both land-based and online casinos. Ladbrokes has been at the top of its game for a long time, and it offers a variety of banking methods. This online betting exchange is safe and easy to use.