Betting exchanges are quite popular in most European countries including the UK but are only recently getting traction in India. One of the primary reasons for ignorance about betting exchanges is that till now, there were no such sites available for Indians. It is only now that punters have the option of betting on exchanges from sites like 1xbet, Fun88, Crickex, and Betdaily.
The biggest reason for the popularity of betting exchanges is that they usually offer better odds than even the best sports betting odds site. So let’s understand how do betting exchanges work.
What is a betting exchange?
A betting exchange is an online platform that brings together punters, who bet against each other, rather than placing bets with a bookie. There are a few key advantages of using an exchange over a traditional sportsbook.
Back bets and Lay bets
In a traditional sportsbook, it is only possible to place `back´ bets. This means that you are `backing´ a team to win, or `for´ an event to occur. If the same does not occur, the bookie wins. In a betting exchange, there is an option to place `lay´ bets, or placing wagers for an event `not´ to occur. For every punter placing a `back´ bet, there is a corresponding `lay´ bet placed by another punter.
Greater flexibility
Betting exchanges provide a great deal of flexibility in terms of the value of the wagers, as well as the odds for such wagers. All you need to do is find another punter who is willing to match your odds, and risk a `lay´ or `back´ bet against your bet.
Online bookmakers have a certain limit on the amounts that you can wager or the winnings that you can accumulate on a single bet or in a single day. Exchanges usually don’t have such limits, and as long as you have the required balance in your gaming account, you can wager any amount that you want to.
Better odds
The odds on a betting exchange are almost always better than what you would find with any bookie. The reason for this being that a bookie always keeps a margin for themselves, no matter if a team loses or wins.
The exchanges, on the other hand, offer `true odds´ that are market-driven. This gives you a better value out of each bet that you place.
Making a guaranteed profit using betting exchanges
Betting exchanges provide you with a sure-shot opportunity to make a profit. Most online sportsbooks offer its users `Free bets´ as a part of their promotional offers. Punters can use these free bets to place a `back´ wager on the sportsbook, and at the same time, place a `lay´ wager on the same team on a betting exchange. Therefore, whatever be the outcome, you will win one bet, and since you have funded only a part of your total wager, you are guaranteed to make a profit.
How do betting exchanges make money?
Betting exchanges charge a small commission, usually in the range of 2-5% on the winnings earned through them. Losing bets are generally not charged anything. Therefore, one factor that winners should keep in mind before calculating the final winnings is this commission amount.
Are betting exchanges safe
All reputed betting exchanges are as safe to use as an online bookie. The punters are only allowed to wager an amount provided they have sufficient balance to cover the losses. Therefore, pay-outs should not be a problem.
Some key points that a punter should look for before selecting a betting exchange are that
- The exchange should be licensed by a reputed regulator
- Should support multiple payment methods
- Have a robust customer support
