A betting exchange is a place where betters bet not with a bookmaker, but with the same players. The company itself, which organizes this entertainment, does not risk its own money, but acts as an intermediary, withholding commissions for safe transactions. An example of such an exchange is Betfair. Differences between betting exchanges and bookmakers:
- Valuity: players are not limited in the choice of coefficients, they are not constrained by the bookmaker’s margin.
- Unlimited bet sizes: on the exchanges, no one cuts the limits of successful players.
- The ability to play it safe: you can call your bet back in live to stay with a profit when the outcome of the match is not in your favor.
- Lay bets are made with reciprocal odds. For example, if you bet on a team winning with odds of 3.0, then an inverse odd of -3.02 will be set for its failure. To understand how the straight line will turn out, you need to substitute the value in the formula: k / (k-1). In the given example, it will turn out: 1.49.
As in a traditional bookmaker, you can bet before the start of the match or in Live.
Exchanges have several disadvantages:
- the absence of limits stimulates the game in a big way, because of which players lose significant amounts;
- commission for winning 5%, and if you are successful, the company will remove the super tax – up to 70%;
- low liquidity: it is difficult to bet on uninteresting events, you will have to play against office employees or bots;
- ideal market: local bettors cannot be caught making mistakes, like a bookmaker, that is, there are almost no underestimated outcomes;
- dependence on rates develops faster, it is very difficult to stop.
Despite these downsides, exchanges have become a source of success for many players. In addition, they set a trend for margin reduction, which was picked up by bookmakers.