Online Betting Exchanges
A betting exchange is a type of market for peer to peer betting. They are similar to sportsbooks in that people can sign up and place bets on various events, but they are different because the betting exchange itself does not offer the bets. At a sports betting exchange, you can be the person backing the bets and you can be the person laying the bets. Sorry - no decent US betting exchange exists - instead check out our list of USA betting sites.
The Only Betting Exchange Site Worth Using
At online betting exchanges, anyone can create bets and then be matched with people who are willing to take those bets. You can simply look for bets and take them like at a normal sportsbook or you can create your own bets and wait for other people to accept those bets. It’s almost like trading options on the stock exchange.
Betting exchanges make a profit by charging a small commission on all winning bets. This commission is generally in the 5% range, which makes it cheaper than betting at a traditional sportsbook.
How to Bet At Peer To Peer Exchanges
You can place bets at a betting exchange by signing up for an account, logging in and looking for bets that you want to place. If you see a bet you like, you can either back it (bet that the outcome will happen) or lay it (bet that the outcome will not happen). Or if you don’t see anything you like, you can choose your own odds and wait for someone else to come along and accept your order.
If you create a bet, you can limit your maximum potential loss by stipulating the most you are willing to lose. Your bet will be modified based on the odds you have offered. For example, if you offer odds of 2.0 and are only willing to risk $100, the maximum amount for someone taking your bet would be $50.
Advantages of Online Betting Exchanges
The greatest advantage of wagering at a betting exchange is the cost of betting. A normal sportsbook takes a much higher commission through the use of juice. Betting exchanges only charge a flat 5% on all winning wagers.
Another advantage to betting at exchanges is that they let you act as both the bettor and the bookmaker. You can browse and place bets the simple way or you can create your own bets and book action on them yourself. This allows for much more in depth strategy than simply picking bets at sportsbooks. This also makes it possible to find better odds than at any regular sportsbook.
Betting exchanges can also be used to lock in profits. If you back and lay opposing bets with the right odds, it is possible to make a profit no matter the outcome of the match. It is not easy to lock in profits, but it is definitely possible.
Finding the Best Betting Exchange Sites
The best betting exchanges are those that have the highest customer traffic. A large customer base makes the exchange liquid and makes it easy for people to be matched. To date, the best betting exchange by far is BetFair.com. They have countless active bettors and facilitate thousands of bets every day.
There are several other betting exchanges out there, but BetFair.com is the largest by a long shot. You’ll find more bets here than anywhere else on the internet. On top of that, BetFair.com is the most trusted betting exchange online. They have been online since 2000 and are licensed and headquartered in England.
We also like BetFair.com because they are on top of the mobile betting craze that is just now picking up steam. They developed an iPhone betting app so that you can now place bets and manage your account from anywhere.