What is a betting exchange?

Betting exchanges

Betting exchanges act as a medium between the entrepreneurs. They connect those who place lay bets with the more traditional punters who bet on a winner with back bets. They make a profit by taking a commission on won bets and have completely turned the betting market, as we knew it, upside down.

You can find betting exchange explained in details in website like topbettingwebsites.co.uk.


The most successful betting exchange is Betfair. Setting up an account here is simple. Of course you must be over 18 and live in a country where betting on the exchange is not prohibited.

The biggest event in Betfair's history dates back to 2012 and in September more than £60 million was spent. For one game. The match in which Andy Murray won the US Open against Novak Djokovic.

For the small fish in the betting business Betfair offers great value, with a minimum stake of only 2 pounds and the chance to play on a 100% market (before deduction of commission). The margin (including commission) is usually significantly better than with traditional bookmakers.

The five advantages of a betting exchange

1st value

Unlike bookmakers, Punter does not compete with profit margins, but with entrepreneurs who are of the opposite opinion. If he has the right nose, he can profit.

2. no bet limit

Where bookmakers usually limit winners quickly and severely, all punter bets on betting exchanges can place unlimited amounts.

3. security

The flow of money on betting exchanges is safe and guaranteed.

4. secure your profit/trade

By hedging their own bets through the combination of back and lay bets, when the market makes the right moves, a risk-free system is created, no matter what event occurs. For example, if you bet 100€ on Dortmund at an 'even-money' rate of 2.00 before the game and the team takes the lead with 1-0, you can hedge the whole thing at a Lay rate of 1.33. That is, if Liverpool wins, you still win 67€, if they don't win, you lose nothing.

5 In-Play Betting

The betting exchanges have revolutionized betting while an event is already running. Odds are now offered during all matches. even here without the usual calculated profit margin. As a result, the bookmakers are constantly offering odds updates for larger events. Their odds, however, usually remain some points below those of Betfair.

Disadvantages of a betting exchange

Commission and Premium Fees

New customers who win bets must pay a 5% fee. An amount that can become more relevant over time and makes it hard to make longer-term profits. Most successful Betfair customers have recently been confronted with a kind of "super tax" of up to 70%.

The urge for action is a thing of the past

The race-to-race mentality that spurs the stock markets means that many lose their discipline betting and play every race or live event. The addiction potential is particularly high for newcomers.

Not necessarily liquid

Many of the smaller sports that are not broadcast have a rather small size and are mostly fed by robots and the exchanges themselves. It has become almost impossible for some events to find a bet of a certain size before the event comes to an end. Horse races, for example, which take place in the middle of the week, are virtually non-existent when it comes to betting.

The perfect market

In the age before the betting exchanges - the more cunning in the betting business had an opinion about the prices that could bring profit. Now that Betfair has paved the way for the entire betting industry, it is hard to find mistakes in the market that were otherwise common. Betfair is above all a perfect connection platform for all the super brains of the betting industry and it is often very complicated to find advantages in prices, especially in football where most information about form/teams etc. is known to the masses.

Planning bets

Although it is possible to regulate yourself by setting yourself a maximum per day/month, most suddenly bet significantly more than ever. This is especially true for those who are not used to layering or losing large amounts of money. There is little doubt that the "free" Betfair market promises a tempting honey pot that has already been an expensive adventure for many.