A Betting Exchange – What is It?

If you’re into betting and gambling you’ve probably heard about a betting exchange, but you might not be sure about its rules and meaning. We’ve asked guys from ​smarkets.com – a fairer betting exchange to tell us more about it and here’s what we’ve found out about this betting system.

In short, a betting exchange is a system that allows you to bet not against a bookmaker, but against other gamblers. This means that a gambler can act both as a customer (using the odds which are set by other users) or as a bookie (who sets the odds for an event). As a business, a betting exchange doesn’t involve any risk, since this system only pairs two gamblers together and, after an event, it takes a commission from the total winnings. On the other hand, a traditional bookmaker accepts the risk in bets with gamblers (which is why they are very risk-averse).

As this betting system was introduced, a betting exchanged actually expanded range and the diversity of betting options for gamblers. The reason is simple: other gamblers are more willing to back bets that wouldn’t be done by traditional bookmakers (because of the risk). Nowadays, it allows gamblers to find perfect odds and gamblers in order to place the bets. Another difference between a betting exchange and the traditional betting is a lay betting option when a gambler backs a selection to lose. In case a betting exchange finds another gambler who’s willing to put a bet on the selection you’d like to put a lay bet on, you can place your bet.

When it comes to the prices, unlike with traditional betting, the prices aren’t set by a bookmaker but a free market. It comes as no surprise that a betting exchange has proved to be incredibly popular with gamblers who want a wider range and variety of betting options and odds.