Online Exchange Betting
When it comes to betting online, the most popular way to bet is with an online sports betting bookmaker. However, there is another option where punters can place sports bets without going through any type of bookmaker. This is known as exchange betting. Essentially exchange betting is a type of betting system where punters bet against each other with the betting exchange site handling the finances. In the notes below, we are going to take a look at how exchange betting works and the different types of bets that can be placed online.
How Exchange Betting Works
Traditional sports betting websites offer punters fixed odds bets on the outcome of game or match. If the punter wins, he or she is paid out the amount agreed upon at the time of the bet by the bookmaker. With exchange betting, punters place bets against each other through a betting exchange website. In this case, punters have opposite views on the outcome of an event. One punter will back a positive outcome while the other backs a negative outcome.
If the result turns out favourably, the punter backing the negative outcome then pays out the agreed upon stake to the winning punter. The betting exchange benefits from this deal too. Unlike sports betting sites and bookmakers who would have to pay out the winning stake, the betting exchange simply takes a percentage of all the winnings on every bet as commission. This is understandably great for business and a way for punters to set their own odds.
Back and Lay Bets
There are two types of bets that can be placed with exchange betting. These include a backing bet and a lay bet. The concept of the lay and back bet is quite simple. If you think the outcome of an event is going to happen you will place a backing bet. If you think the outcome is not going to happen, you will place an opposing lay bet. This is unique type of bet that cannot bet found with sports betting companies. The lay bet is has made exchange betting so popular.
Let’s look at a simple example of a lay and back bet. If there was an upcoming football match between Manchester United and Liverpool, the online betting exchange odds could look as such:
Let’s say we want to place a lay bet on Manchester United. This means that we think that Manchester is not going to win the match. The cost of a $1 bet is 64 cents. If Manchester does lose, the bet will collect $1 which is paid out by the punter who was backing Manchester to win. If Manchester wins the match, the total stake will be paid out to the other punter who backed the team to win.
Racing Exchange Betting
Exchange betting is most commonly used with sports games matches where one team or player is pitted against another. This includes soccer, rugby, AFL, tennis and similar team or individual sports. This does not mean that it cannot be used for racing betting as well. As with many top sports betting sites, betting exchanges offer racing betting where punters can back any horse in the race. In this case if a punter is placing a lay bet on an unknown horse, the stake is much larger if the bet loses.