What is Exchange Betting: Complete Guide to Understanding Exchange Bets Online

Exchange betting is steadily growing in popularity within the UK, mainly due to the fact that it provides players with access to some of the best odds and prices on a variety of sports betting markets.

Our expert is here to take you through his guide to betting via an exchange, covering all you need to know to successfully do so yourself and place exchange bets in the future.

What is a betting exchange?

A betting exchange follows a similar line to that of a stock market whereby different people compete against each other to win big on different markets.

This is the basis of exchange betting, as players are betting against each other instead of the bookmaker.

Instead of betting against the house or bookmaker, you are wagering against other people on whether a certain outcome will occur or not.

The improved odds and prices are gained from this as the bookmaker don’t set the odds based on stats and figures, with other bettors setting their own odds depending on the money staked on each market.

Betting on the Exchange

Betting on the exchange is very simple, with users either able to place a back or lay bet on any market.

If you place a bet on the ‘Back’ market, you are betting on something happening, and are acting as the normal bettor.

If you are ‘Laying’ you are betting on something not happening, and are acting as the bookie.

‘Backers’ and ‘Layer’ are then able to match themselves up via these betting exchanges, and then the bet is set.

The exchanges then take a small commission of the winnings on either side, usually around 2%-5%, which is how they make the funds needed to operate.

Backing

When ‘Backing’ on the exchange you are betting on something happening, be this a player to score or a team/horse to win a match or race.

When ‘Backing’, you set the odds you want to play at and the stake you are willing to risk.

This will then be attempted to be matched with another player on the exchange or a ‘Layer’.

When this is matched, the bet is set, and you as the backer can win, according to the specified odds and stake, if the bet comes in.

However, your ‘Back’ isn’t always guaranteed to be matched and if it is not then your stake will be refunded in full, as cash, back into your account.

Laying

If you are a ‘Layer’ you are betting on the inverse of the ‘Backer’ or on something not happening, be this a team to not win the match, or a player not to score.

When ‘Laying’ you will set the odds and the stake amount, however you must have enough funds in your account so to be able to pay out the full winnings should the ‘Backer’ win the bet.

For instance, if you ‘Lay’ a bet with odds of 4/1 with an available stake of £10. You must have at least £40 in your account so to be able to pay out the full amount should you lose.

While ‘Laying’ may appear a touch more complicated, the likelihood of you winning is skewed in your favour. This is because you are betting on every other potential outcome happening, whereas ‘Backers’ are only betting on one outcome occurring.

For example, if you were to la Man City to win their next game, then they can draw or lose for your side of the bet to come in, whereas the ‘Backer’ needs Man City to win the match for their bet to come in.

Getting the best Odds on the Exchange

The improved odds of the exchange for ‘Backers’ comes from a variety of means.

The first of these is due to the fact you’re betting against someone else instead of a bookmaker who has access to a wide variety of stats and programs that help them decide on what odds to offer.

The ‘Layer’ however, in most cases, does not and is simply betting with their gut. This means they are more likely to offer higher odds because they believe in their side of the bet, instead of this being tempered by stats, figures or potential losses.

The next way this can provide the best odds around is because people want for their bets to be matched, and the best way of doing this is to set higher odds so that the bet stands out.

It is in this bid to have their ‘Lays’ noticed and matched, that improved odds come as players will inflate their offered odds,

The more players that use the exchange, the more likely players are to receive better odds, due to the fact there are more ‘Backers’ and ‘Layers’ to choose from.

A greater number of players the likelihood of a wider and better selection of odds becomes stronger.

Pros and Cons of Exchange Betting

Betting exchanges are growing more and more popular by the day, and this only serves to increase the opportunities for bettors to make use of the distinct advantages they offer.

First of course is the increased odds, whose virtues have already been extolled above, but of course for those looking for the best possible odds for nearly any given market, the betting exchanges are the place to go.

There is also of course the increased probability of winning a wager, if the bettor acts as the ‘Layer’. All other potential outcomes allow for the layer to win the wager, whilst the backer requires one, so the portability swings the way of the layer.

The only drawback is that unlike with regular sportsbooks, the availability and in turn the price of bets relies on the amount of punters playing on the exchange.

Therefore if it isn’t a massively popular spotting event, or it is a smaller betting exchange, the availability of the bets will be lower, and some markets may be non-existent.

Betting exchanges do offer bettors the chance to get some of the best prices around, as well as increase the probability of winning their wagers, yet it does require a large number of bettors to function to a high level.

What is Exchange Betting FAQs 

What is exchange betting? 

In its simplest form, exchange betting is where punters compete to take money off of each other, instead of the bookmaker/betting site. 

This is done by a series of back and lays, all of which are broken down above. But the best odds around are often found on the exchange because real people are far less risk-averse than that of the house. 

What is the best exchange betting site? 

Betfair are one of the best exchange-based betting sites in the UK right now. 

This is because it connects thousands of players together. The more people using the exchange, the better. As there are more people to bet against, and in turn win money off. 

How do I bet on the exchange? 

Just go to the exchange betting site of your choice. Find the bet you wish to back, and then set your stake. 

It works remarkably similar to that of a normal betting site, but it can be a touch overwhelming at first. Fear not the above guide will address any concerns and get you well on the way to becoming an exchange regular. 

Are there any offers on the exchange? 

Yes, Betfair, Smarkets and SpreadEx all have new customer offers for players to take advantage of. 

Simply use one of the links, found above, and anyone can be well on their way to claiming offers and free bets.