The Betting Exchange
What is a Betting Exchange ?
A Betting Exchange is a website that simultaneously allows its users or customers to place bets with each other. Outcomes from hundreds of sporting events can be backed or opposed on the Betting Exchange and all bets are matched between the Betting Exchanges customers. This means the Betting Exchange carries a win - win scenario, the Betting Exchange cannot lose money and simply profits from the commissions generated from the winnings of its members.
Is a Betting Exchange like a Bookmaker ?
NO. The Betting Exchange and the Bookmaker could not be further apart, although they both represent the same field of providing bets for sports betting purposes, the Bookmaker still has potential to lose money since the Bookmaker carries the risk and exposure of other peoples bets unlike the Betting Exchange who risk is offset completely.
How does a Betting Exchange make its money ?
Due to the Betting Exchange allowing its customers to bet against and amongst themselves, the exchange itself carries no financial risk. The Betting Exchange makes its money by deducting a small percentage from anybody and everybody who wins money. Unlike a Bookmaker who certainly does not want its customers to win, the Betting Exchange wants as many people to win as possible, this way they get to make their revenue from collecting commissions from winning accounts.
Can anybody use a Betting Exchange ?
NO. There are strict limitations in place which in some countries make the use of the Betting Exchange or Sports Betting in general to be illegal. If you live in n area where online wagering or gambling is illegal then it would be fair to say that using a Betting Exchange could be illegal too. Here in the UK, anybody can use a Betting Exchange so long as you are over 18 years of age.
Why would I use a Betting Exchange ?
If you already use a Bookmaker to place sports bets, then maybe you should consider using a Betting Exchange. The main reason is that greater odds are available for backers which results in bigger winnings. Also, the option to oppose a sporting outcome by placing a Lay Bet is a very appealing feature for most and offers something that the nominal Bookmaker can not.
