By definition, a betting exchange is a multi-feature platform where you can place bets on numerous sporting events, just like in a bookmaker’s office. However, the discrepancy between these two notions is that bettors play against each other on the exchange. Ultimately, we can get exchange betting explained as an intermediary between players that takes a percentage of each win for its services.
In this article, we will delve deeper into understanding the forecasting market, its pros and cons, and note how to place bets on similar platforms hassle-free.
Differences Between an Exchange and a Bookmaker’s Office
Virtual exchanges operate in the same realm as online bookmakers, which is gambling and sports betting. To tempt your fortune, you need to register and verify on both platforms. Nevertheless, there are noticeable differences between exchanges and bookmakers that determine your future choices.
Within a staking exchange, there is an excellent opportunity to place only single bets. There are no systems for express bets or accumulators. Within a bookmaker setting, bettors play against a bookmaker who sets the odds and takes a margin, while on exchanges, there is no margin involved. That is, users are effectively competing with each other, and not with an entire bookmaker with a team of analysts.
The exchange does not risk its finances, since it does not pay out winnings from bets and rarely offers extra rewards. Instead, such companies make a profit from bets and winnings. It is worth noting that the commission typically ranges from 1 to 7% of each winning bet. This percentage is set by the exchange itself, without any intermediaries.
Furthermore, on the exchange, a player has the right to close any of their bets before the match concludes. In contrast, bookmakers may only provide this option under clear-cut conditions, such as a cash-out available for certain tournaments.
How Betting Exchanges Operate
On betting exchanges, there exist two types of users: sellers and buyers, as well as two types of bets: “FOR” and “AGAINST”. The seller offers odds on matches to other bettors, the buyer accepts the competitor’s terms, and if the offer is not satisfactory, he can also become a seller by setting their own odds.
“FOR” Bet
In essence, it is an analogue of a conventional single bet in a bookmaker’s office. Select the match and outcome you are intrigued by from the available list. If the odds set by another bettor suit you, enter the amount and place a bet. If the odds do not meet your expectations, you can set up a deferred bet that will be placed as soon as the odds value reaches the level you specified before.
“AGAINST” Bet
In this case, you bet that the outcome you specified will not take place. Bookmakers have a similar type of bet known as an anti-express, which wins if at least one event does not take place. When you bet “AGAINST”, you set your odds that a given event in the match will not occur, and indicate the amount you are willing to risk. When the other bettor agrees with your odds, a bet is made. If your opponent wins, you lose your whole stake, and vice versa. In fact, when you bet “AGAINST”, you become a bookmaker. If you win, your profit is the amount of money wagered by the other participant minus the exchange commission.
An Illustrative Example of an “AGAINST” Bet.
Consider a Premier League match “Arsenal” – “Chelsea”. Let’s pinpoint that you decided to bet against the home team’s victory on a well-favored exchange. Click on the button with the odds demonstrated for “Arsenal”. Select the bet amount – let’s say €100. If you carry the day, the payout will be calculated as: amount * the specified odds (in this example, 1.65); therefore, you would receive €165. If you lose, you will lose €64, which the second player risked. We should note that all calculations are indicated without taking into account the exchange commission.
How to Successfully Bet on an Exchange
The interfaces of betting exchanges vary widely from each other, but the principle for placing a bet is approximately the same:
- Register, verify, and log in to the website or application.
- Select the sport, tournament, and match you are keen on.
- Determine the type of bets – “For” or “Against”.
- Click on the corresponding column for the outcome you are interested in.
- Indicate the bet amount; it will be placed in the general pool.
- If there are currently no active offers for the match on the platform, wait until one of the players places a bet on the opposite outcome.
- If your forecast is correct, you will receive the winnings amount minus the exchange commission.
To bet on a sports exchange like a pro, you should exploit core discrepancies between an exchange and a bookmaker to your own advantage.
Pros and Cons of Betting Exchanges
As with any sports phenomenon, betting exchanges allow you to play smarter while considering their benefits and pitfalls. The leading advantages and disadvantages of playing on betting exchanges are reflected below.
Benefits:
- No margin leading to higher odds.
- The ability to act as a bookmaker on your own by setting odds on your preferred event.
- You can place an unlimited number of bets on a single event without the risk of being blocked.
- If the player who set the line makes a mistake, you will still get the winnings – there will be no refunds.
- Impressive maximum betting limits;
- There are multiple bonuses and promotions, such as a 0% exchange commission for a certain period.
- A loyal attitude towards “arbers” (arbitrage bettors).
Pitfalls:
- Commissions for each win: these range from 5% to 7% for the most well-favored exchanges.
- In reality, there are so many betting exchanges that you can get lost in the ocean of choices.
- You need to wait for another bettor to match your wager.
- A long-lasting search for an opponent on less popular exchanges.
- The formation of betting lines may lag behind conventional bookmakers.
The Bottom Line
To sum it all up, betting exchanges offer a versatile staking environment, leading to potentially high winning stakes and a positive experience to help you thrive in the world of sports staking.
