What Is A Betting Exchange And How Do They Work?

A betting exchange is like an online marketplace for sports bets, where you can bet against other people instead of a bookmaker. On a betting exchange, you can either support a team to win by “backing” them, or bet against them by “laying.”

The exchange itself makes money by taking a small fee from the winnings. This setup gives you more control and can be really appealing to those who are serious about betting.

As you can see from the table above, one thing you might notice about betting exchanges is that there are multiple prices to choose from. This is to increase the amount of matches between betters and layers.

Every betting exchange has a similar but different layout. So when you’re placing your lay bets in the betting exchange, make sure that you’re really being meticulous before placing it.

Why Are Betting Exchanges Needed In Matched Betting?

The reason we need betting exchanges when we’re doing matched betting is because it’s the only place we’re able to get our lay bets. Without lay bets, then we wouldn’t be able to neutralize are qualifying bet, making the whole system fall apart.

Some backers might be happy with a smaller potential return in exchange for a guaranteed bet match. They might offer a lower back price but a higher stake amount, ensuring their bet gets matched quickly.

Challenges Of Using Betting Exchanges

Unfortunately, if you’re new to betting like me, there can be complicated to understand, and some of the things you’ll need to be aware of when you’re using a betting exchange are:

• Managing Liability: When you lay a bet, you’re taking on the role of the bookmaker, which means you also take on the liability for that bet. If your lay bet loses, you are responsible for paying out the winnings. This liability can sometimes be substantial, depending on the odds you offered. Which is fine if you’re matched betting correctly, but one mistake can become costly.
• Liquidity Issues: Liquidity, or the amount of money available in a betting market, can be low for less popular events, which can make it difficult to place larger bets.
• Fees: Exchanges charge a commission on your winnings, which, although usually lower than traditional bookmaker fees, can still reduce your overall profit. Understanding and accounting for these fees is important when planning your matched betting strategies.
• Risk of Errors: Previously mentioned, but it can’t be overstated, the way betting exchanges are made can lead to costly mistakes, particularly for those unfamiliar with how exchanges work. Missteps in laying or backing the wrong odds can lead to unexpected losses.

What Are The Best Betting Exchanges To Use?

Just like bookies, there are plenty of different betting exchanges you can use as well. Some great ones to choose from include:

• Betfair: The biggest and most well-known exchange, offering the most markets and liquidity (money available to bet). This means it’s easier to find matches for your bets. However, they also have the highest commission rates (a fee taken from your winnings).
• Smarkets: Known for having a great mobile app and often has 0% commission offers for new customers. However, they may have less liquidity than Betfair, especially for niche markets.
• Betdaq: If for whatever reason you don’t like the two above you can aslo try betdaq which also focuses on low commission rates. They also have a decent range of markets but again, may not be as vast as Betfair.
• Matchbook: And last but not least, you can also try Matchbook. They’re definitely my go to choice as of writing. They have an amazing deal right now where you can place one bet per event, up to a maximum payout of £200. This is amazing for matched betters, as it the zero comission will increase your profits over time.