Betting exchanges are disruptive. They are shaping the sports betting scene courtesy of new approaches that broaden Betfair customer betting options. We invite you to read along to get eye-opening explanations of what online exchange betting is all about. Equally covered are the advantages of betting exchange that will enable you to choose wisely between the latter and the best sportsbook.
Unlike traditional bookmakers, betting exchanges provide a platform for sports betting fans to trade the outcome of sporting events. Betting exchanges can also extend to trading the outcome of political events and numerous current affairs. The main difference with a traditional bookmaker is that they allow bettors to stake against themselves instead of betting against the sportsbook.
A betting exchange is not limited to odds assigned by the betting sites. A bettor goes head-to-head against other significant bettors through laying or backing.
How Betfair Exchange Works
Betfair sportsbook is a prime online betting site by Flutter Entertainment. Over at least two decades, the bookmaker introduced the Betfair exchange offering existing betting customers a new way to enjoy their stakes. Here is how it works.
Backing and Laying
When bettors place a bet, there is a limitation to just back the likely winning bets. However, a betting exchange offers users a chance to back and lay the bet outcome. As such, bettors may act as bookmakers by setting their odds or as customers by backing odds fixed by significant others along with the exchange network.
The concept of back and lay bets make the bettor more of a profiteering stock exchange broker. The pre-game and in-game events allow Betfair exchange users to intuitively guess the game’s direction, thus laying or backing accordingly.
Betfair Betting Exchange Commission
Sportsbook provides fixed odds with a margin. They price them after factoring in their profit margin when they accept bets. That is why sportsbook odds do not represent the actual likelihood of outcomes. The margin affords Betfair sportsbook and other sites an edge over the gambler. Besides, when traditional sportsbooks price a sporting event, they leverage odds that make betting on either side of the market attractive. Such odds help balance the site’s liability. In the case of an absolute balance in liabilities, the site will not profit. Balanced liabilities compel bookmakers to introduce a margin reflective of the likely profit.
Contrary to betting margins, betting exchanges charge a commission. Betfair exchange commissions are dynamic as it uses Market Base Rate to arrive at commissions payable by the Betfair customers. The chargeable rate is different across regions. Gamblers in the UK and Ireland pay a commission of 5%. It is important to note that Betfair exchange commissions are chargeable to winning bets only.
You will find Betfair exchange commissions exciting as you can reduce the rate through the exclusive Betfair points. Whether they win or lose, all real money betting activities earn you points. More points translate into bigger discounts on your commission rate.
Trading the Betting Odds Market
Stock exchange trading is essential in understanding how a betting exchange works. Instead of purchasing and offloading tradeable shares, traders back or lay the outcome of market valuables. Like in the stock market, betting exchange users at Betfair consider the likely events in the ongoing game instead of accumulating vast knowledge of the teams in a duel.
Trading in the market helps to widen profit chances. Likewise, betting exchanges offer an opportunity to trade for a profit or reduce the exposure of a previous bet on the match. While this may be comparable to what many online betting shops offer as cashouts, there are restrictions on how much you can cash out subject to specific events.
Advantages of Betting Exchanges Over Sportsbook
Many Betfair platform users use a betting exchange. These are some of the reasons why.
Relatively Better Odds
Betfair generates money by charging commissions on the exchange and factoring in a profit margin in the bookmaker. Since there is no margin on exchange betting, you are free to enjoy higher odds depending on what your peers stake.
Fewer Limitations on Betting exchanges
Betfair sportsbook users are likely to experience bet cancellations, too many refunds, account deactivations and eventual closure or restrictive stake restrictions frequently happen. Other Betfair exchange users are not subject to such terms. A betting exchange acts as an intermediary so many customers can lay or back a betting outcome. Therefore, few betting exchanges care about the game’s result.
Comparably More Value From Higher Odds
When you place bets on a regular bookmaker, you only bet on fixed odds with an innate site margin. Betting shops price their markets with ridiculous odds that confer an advantage to the site prior. However, Betfair, a platform among the first betting exchanges, offers competitive odds. The peer-to-peer nature of this oldest betting exchange ensures that forces of supply and demand determine the size of the odds. Better odds translate into more value as you can win more if you go for the same bet in an exchange.
Other advantages of the Betfair exchange are the availability of different markets. For instance, you can back a horse to finish in the top three, two or finish at the top. The same applies to teams in a league. At the start of the league, you can back a particular team to finish in the top four positions. You can also place opposite odds, guessing teams likely to finish in the relegation zone.
Betfair Exchange Conclusion
Betfair exchange or sportsbook is a user-friendly online platform where bettors can have fun following events of their favourite games. Betting exchanges have a significant advantage over the bookmaker. Bettors have the freedom to stake on the game’s events, incredibly higher odds will not attract unfair restrictions of your account, and you can back more market options. Depending on his tastes and preferences, a discerning punter will choose between an exchange and a bookmaker.