The idea of exchange betting is simple in that punters against other bettors and not against a bookmaker.
As such,it has a number of distinct advantages over other,more traditional,forms of betting.
The main advantanges are that you will almost always get better odds than with traditional bookmakers.
When a bookmaker sets his odds on an event he builds in a profit margin for himself,so that if a proportionate amount is bet on each possible outcome,he is guaranteed a profit. This margin is typically anything from 12% to 25% .
On the exchanges (Betfair and Betdaq) you are betting directly against other bettors so there is no bookmaker’s margin which can lead in many cases to you getting prices that are 20% better.
However be warned,as it not all sunshine and roses as the exchange take a percentage of all you winnings. This is usually between 2 and 5% but can be higher.
Other advantages are:
*You can lay as well as back as you are in effect the bookmaker. If you do not fancy a horse or a team or a player,you can lay them without having to pick the winner. This also means that you can hedge out of a position and guarantee a profit even before an event has finished.
*You can also bet as much as you like as the exchanges do not impose limits. However you cannot bet more than you have in you balance,and if you laying then your maximum liability is determined by what’s in your account.
* Winners are welcome. The exchanges will not restrict you if you are constantly winning as you are taking on others and not them. They are making commission on all winning bets so they want you to do well.
*You can take a price or set your own and don’t have to take the odds on offer about your selection. If you feel that you can get a better price,you can make your own offer at your own odds. Your offer is then entered into the exchange for other bettors to accept.
*You can bet while an event is in running. Unlike traditional bookmakers that,for example,close markets on football games 10 minutes before the end you bet right up to the final whistle on the exchanges.