2 minutes What exactly is a betting exchange, and how do they differ from a traditional online betting site? We explore the core details in this blog!
When scrolling through betting.bet, you will notice that some of our partner betting sites are labelled as "Betting Exchanges". These are a certain type of betting site that have become increasingly popular in recent times. But, what exactly is a betting exchange, and how do they differ from a traditional online betting site? We explore the core details in this blog!
Betting Exchanges Defined
A betting exchange is the same as a standard betting site in the sense that it is where you can place betting predictions; however, unlike a standard bookie like Ladbrokes and Coral, a betting exchange sees punters bet against each other. Here is how it works:
Bettors have the option to purchase (back) and sell (lay) a betting selection, engaging in real-time trading during events to minimise losses or secure profits. Unlike bookmakers, punters have the option of backing a selection to lose rather than win!
Bookmakers earn revenue by setting odds that are less favourable while betting exchanges typically charge a small commission on successful bets to generate income.
What Are the Benefits of Betting with an Exchange?
There are numerous benefits to choosing to bet via an exchange, the most obvious of which is the option to lay (sell), as covered above. With bookmakers if a bookmaker is not willing to accept the odds or the stake you wanted to place, you can't place your bet.
However, with a betting exchange, you just need to find another member prepared to assume the risk, or in other words, to lay your bet. Therefore, betting exchanges provide users with the flexibility to find the odds and markets they believe in.
Are There Any Disadvantages to Using a Betting Exchange?
The one drawback to using betting exchanges over betting sites is the fact that there are not as many exchanges available. Betfair is the biggest in the industry and has the monopoly of the betting exchange market.
BetDaq and Smarkets are some other options but are by no means as popular as Betfair.
There is also a slight learning curve, with those new to exchanges needing to find their feet and get to grips with this alternative method of betting.
You can register with betting exchanges, including Betfair Exchange, Betdaq, and Smarkets via betting.bet today.
