In the world of matched betting, there is one place you will be spending most of your time – a betting exchange. You have probably already heard of a betting exchange without even realising it, with Betfair Exchange being the world’s largest betting exchange and regularly advertised online and on television.
Betting exchanges like Betfair Exchange are an essential component of matched betting, although they are notably different from your traditional bookmaker. This causes a lot of confusion for people new to matched betting, as the differences between betting exchanges like Betfair Exchange and traditional bookmakers are not always obvious.
Let’s take a closer look to find out more.
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What is Betfair Exchange?
Betfair Exchange is the world’s number one betting exchange service. This is like a bookmaker in that the service allows you to place bets, but the main difference being that you bet against other players rather than a bookmaker.
Many use the comparison to the stock exchange market. Instead of trading shares, people trade bets on a betting exchange, covering everything from sports events to the entertainment world.
Of core, for this to work, you need a bet placed on either side, which is where the differences between bookies and betting exchanges become clearer. On a betting exchange like Betfair Exchange, one person places a bet on something to happen and the other places against it happening.
Those that think an outcome will happen – such as a team winning a football match – are called backers, while those that think the event will not happen (i.e., that same team will not win the game).
Betting exchanges like Betfair Exchange bet matches between two people, assuming they both agree on the odds of that event happening or not happening
How Does Betfair Exchange Work?
Betfair Exchange lets two people bet against each other, stepping aside as the bookmaker itself. This means that customers take all the risk, with Betfair Exchange simply providing the option for these bets to happen by offering a lay bet – betting against the outcome of someone else’s bet.