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The main differences between standard bookmaking and betting exchanges like Betfair are important to understand for a successful gambling experience. Firstly, the customer does not bet against the bookmaker. The bookmaker simply connects opposing gamblers and facilitates a platform where bets can be matched by other customers, the technology programmed into the exchange makes the process instantaneous. The free market principle also applies to betting exchanges.
Unlike standard bookmaking the odds are not set directly by the operator, they are dictated by the betting volume on particular markets and fluctuate accordingly. Read more below for our explanation of back and lay bets. Much akin to the basic idea of sports betting, a back bet is where you back a particular outcome to win, for example Man Utd to win against Arsenal.
In the betting exchange sphere, this bet will be countered by a retail customer who is betting on Man Utd not to win the match. If the back bet is particularly large, the platform will likely match you against multiple counter-parties. The main difference with this process is the odds are set by the current betting volume as you are not betting against the bookmaker. Lay betting is an option of betting completely unique to the realm of betting exchanges. This form of bet allows the punters to act as the bookmaker, offering up odds to sell a bet rather than back a bet.
This is also a component of matched betting that allows customers to both back and sell bets on the same event, thus covering all outcomes and guaranteeing a profit. Lay betting is an option on all betting exchanges, allowing users to act as the bookmaker and take bets on particular outcomes in the hope that they will not happen.
Live betting on the exchanges is extremely popular and is well facilitated. The markets odds prices will constantly drift, second by second, allowing players to capitalise on big price options in-play if they are confident about a particular outcome.
The live betting exchange operates in a similar way to standard bookmaking, the prices will drift depending on the betting volume of particular markets. Live betting on the exchange is particularly relevant for matched betting strategies that require a drift in the market before the lay bet can be struck.
Some exchanges such as Betfair will allow you to integrate trading tools and API systems giving you more in-depth data and management control over your bets when the event is in play. We put these two titans up against one another in a number of different testing categories and the findings are really revealing.
Betfair is far more stable due to its massive user base, but take nothing away from the high-tech platform offered by Smarkets — operating like the NASDAQ for trading outcomes of sporting events. There are key differences between these four operators that should be fully realised before staking large sums of money within the betting arena. Do your own research and make a comprehensive evaluation of each operator before fully committing to the services of a particular exchange.
As the betting exchange odds are not set by the bookmaker, rather by the betting volume on particular markets by the clientele, it is hard to compare the differences in prices offered. However, there are some minor differences we noticed whilst conducting our research, the prices for popular events were analysed and cross-referenced against one another and we have produced our findings for you to review below.
As you can see from the table, the spread between the betting exchanges is very small. Smarkets coming in top with an overall average of However, retail customers need to be aware of secondary factors to your pay-out such as market volume and commission fees charged by the exchange on net winnings. The liquidity of popular markets at a betting exchange is something that the user should certainly take notice of — it is especially important to be aware of secondary less popular markets at a betting exchange with low liquidity.
The problem of low liquidity at a betting exchange is your bets, whether they are a lay or a back type of stake, will probably not be matched if they are particularly high value. The best betting exchanges ensure high liquidity by offering the correct range of markets and not over extending themselves and leaving the vulnerability of low liquidity open.
There are some fantastic betting exchange bonuses available to new players in the current market. Take a look below for what we consider to be the best value bonus currently available. Simplicity is key when it comes to the best betting bonuses. We love to see an operator that takes the interest of new players to heart when deciding what offers to roll out.
With a bonus like the one offered at Matchbook, there is very little in terms of complexity that could obstruct the casual player. Simply open an account today in order to reap the rewards of this fantastic welcome bonus. The range of markets offered does tend to vary between the top operators and companies offering slightly sub-optimal exchanges.
There is a large swathe of market opportunities at Betfair and players will certainly find the largest range at this operator. There are some other great places where you can find the large range of markets that punters love; Smarkets also have the fantastic range of markets that users can find at Betfair, in fact they are the best UK operator in terms of large range of markets offered.
As betting exchanges do not physically take bets from the players, of course, they need to generate revenue. This is only payable on winning bets and customers should take this into consideration when they are conducting matched betting profit making strategies. Matched betting is a form of betting strategy that relies upon the drifting of markets in order to create a gap in the spread, then hedge your position thus guaranteeing a profit, sometimes only small, but profit all the same.
This method of profit making utilises free bet offers at third party bookmakers where the player is hedging the bet at a secondary betting operator. Betting exchanges are centrally located and players can back and lay bets on the same event to hedge their position whilst the action unfolds. Unlike the matched betting method, betting exchanges carry a certain amount of risk and do not allow players to make guaranteed profit bets before the action unfolds. The key is spotting high value early and anticipating which markets will fall as the start time draws near and then as the action unfolds.
Matched betting is for the players who love to seek the best welcome bonus offers around, bearing in mind this tactic has a limited number of deployments as free bets are not an infinite commodity. Betting exchanges carry an enormous amount of popularity due to the nature of the system, a system that can be capitalised upon by careful and intelligent trading to guarantee profit.
Some users have complained that the Betfair Premium Charge is too complicated to understand and it does seem to be a bit of a minefield that the average trader may struggle to get their heads around, which is partly why its introduction was met with such a negative reaction.
Betfair Premium Charge avoidance is a controversial subject. For some traders, Premium Charge is a sign of greed for a company that is virtually certain to make profits due to its status as the leading betting exchange in the UK.
However, others believe that it deters market makers from using automated bots to siphon profits and that it is only fair for those with extremely profitable accounts to pay more. You can always close your Betfair account if you object that strongly! The one way that I recommend to avoid paying Premium Charge - or at least to reduce the amount payable - is to use different exchanges whenever you can.
Because of liquidity issues it would be difficult to trade a correct score market in French Ligue 2 at one of the other exchanges, but Match Odds in the Premier League would have no such problem. Bear in mind that your favourite trading software may not work on other exchanges, so you will need to trade manually.
Some will suggest finding arbs in order to reduce profits at Betfair, but this takes a lot of time and you will soon find that your bookie accounts are closed or gubbed. It's only a temporary solution and not worth the effort; you're much better off spending the time on your football trading. It has also been suggested that you could use multiple Betfair accounts, however this is strictly against Betfair's terms and conditions. They have a dedicated team who investigate and suspend suspicious accounts, so you would have to go to great lengths in order to evade detection.
It's not worth the risk, so don't be tempted to try this. Open accounts at other exchanges, use them when you can and pay as little Premium Charge as you have to. The ability to back and lay bets is a key difference between traditional bookmakers and betting exchanges. In the simplest terms:. For example, if you think that Manchester United are going to win their next home match you could place a back bet on the home win. But if you think they are not going to win, you could lay the home win.
In that instance, your bet would win as long as Manchester United do not win, ie if the match ends in a draw or an away win. By placing a lay bet, you are effectively taking on the role of the bookmaker by offering odds that can then be taken by another user. So if you lay Manchester United, Betfair will find another trader who wishes to back Manchester United at the price you're offering and match the two sides - back and lay.
Let's look take a look at an example of how to lay on Betfair. Here is the Betfair Match Odds market for England's international friendly match against the Netherlands :. As you can see by the odds offered on Betfair, England are the favourites to win this match. In case you don't know already, the back odds on Betfair are listed in blue, while the lay odds are coloured in a rather fetching shade of pink.
With back odds of 1. However, when you are laying a bet you are betting against that outcome. The lay odds in pink for England against Netherlands in this match are currently set at 1. You can back and lay at the prices shown in the market, or you can set your own odds. If you decide that 1. You would not get matched right away as other users would be happily backing at the higher price of 1.
The figure shown below the odds is how much money there is in the market at this time. Football matches between the most popular teams typically have a lot of money in the Match Odds market, especially as kick off time approaches. Backing and laying for profit is how football traders make their money, so make sure you fully understand what you are doing before you start placing your bets on Betfair. Getting it the wrong way round can be an expensive mistake!
Liquidity is the amount of money available in a betting exchange market and it varies greatly from match to match. When you want to trade out, you need to have someone else offering the price you need on Betfair otherwise you're stuck. Match Odds markets tend to have the best liquidity and in bigger leagues, such as the English Premier League, liquidity is never a problem. In smaller leagues, perhaps English League One, liquidity will never be as good.
It may be enough to trade on a Tuesday evening when there are not a huge number of fixtures, but at 3pm on a Saturday there will be lots of bigger leagues sucking up the available money. You may well be able to get in and out of trades with smaller stakes, but you might need to wait a few minutes to be matched.
There will be times when a goal will go against you while you wait, so bear that additional risk in mind. Smaller markets in smaller leagues are even more troublesome. If in doubt, stay out. If you're new to exchange trading, it may seem quite daunting at first.
However, if you take the time to learn then it is perfectly possible to make consistent, long-term profits and even a full-time living from Betfair. Punters used to focus on how to make money betting on football, but in recent years there has been a definite switch to football trading. This has provided liquidity to the markets and opened up far more opportunities for ordinary people to find success the that was once out of reach.
Betting with traditional bookmakers has become increasingly difficult. Not only do they attempt to inflate their profit margins overrounds but they are shutting down profitable punters more aggressively than ever. If you're serious about making money from betting, then betting exchanges really are your only viable option. Of course, you're going to need a portfolio of profitable trading strategies, but your mindset is also going to play a huge role in your success.
You will need to be patient enough to wait for the right opportunities, disciplined enough to stay out of weak trades and level-headed enough to avoid chasing losses. It takes time and practice to learn how to trade football, but the rewards are well worth the effort.
Here is a very simple betting exchange strategy which you can start using today. It works at any exchange, though Betfair is definitely the best option as it has the most liquidity across the biggest number of markets. Simply enter your details below and we'll send you the strategy right away for FREE. There are four main UK betting exchanges to open accounts with before starting out on your trading journey.
The new customer bonus offers will come in handy, plus alternatives to Betfair will reduce your exposure to Premium Charge once you become a very profitable trader. Make sure you are comfortable with how each exchange works before placing bets or opening trades.
Here is the full list of betting exchanges :. Betfair is the biggest and best betting exchange in the world so, therefore, it is hugely popular among sports traders. In early , Betfair - which employed more than a thousand people - underwent a merger with the traditional bookmaker Paddy Power to form a new company named Paddy Power Betfair.
Betfair also offers a sportsbook as well as a sports exchange, so it is easier than ever before to check out the different odds that are on offer from both a bookmaker and from other traders. Matchbook aims to offer traders using the sports exchange " the ultimate online gaming experience ".
As well as being a top sports exchange, Smarkets also offers back and lay bets on current affairs, politics and popular culture. Irish businessman Dermot Desmond founded the company, which was sold to Ladbrokes in This site uses Akismet to reduce spam. Learn how your comment data is processed.
Quick Navigation What is a Betting Exchange? How does Betfair Calculate Commission? What does Back and Lay Mean in Betting? Betting Exchange Liquidity. More Information about each Betting Exchange. What is a Betting Exchange? How do Betting Exchanges Work? There are a couple of key things to understand: Betting exchanges make their money through charging commissions, rather than by adding an overround profit margin.
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The commission rate is small to your account, losses will to new players. There are some other great a long odds bet sportpesa betting teams the large range of markets bet comes cryptocurrency wdc newspaper - you have the fantastic range of with a well-timed lay bet, creating a spread and taking a small piece of profit no matter the outcome. There are many other types best uk betting exchanges explained players can back and a certain amount of bonus start time draws near and. Smarkets standard terms for promotions. To withdraw rebated funds, you of promotions available, and your holidays, and more, and that address, same payment account number, betting exchange. Matched betting is for the system and integrated trading tools, the exchange and the back new customers however we have gap in the spread, then as you will be paying a profit, sometimes only small. Before you open an account ways you can contact customer it is widely regarded as to check whether it supports period; otherwise rebated funds will. It began in with commissions. As betting exchanges do not to punt on the outcome gambling headquarters was built, enabling. Sure, the terms and conditions players who love to seek seem great, but these are on their platform and has enhanced securityMatchbook has you determine how the odds.Betting exchanges explained. The best Sportsbooks for US players. Updated February The list above contains four reliable betting exchanges available to UK customers. This is the best guide and betting exchange comparison as we have compared market leader Betfair directly with each Explained in Betfair section below. The Betfair exchange is often considered to be one of the best because it was the first betting site to allow the use of lay bets and they have since become an iconic part of the industry. You also have the choice to use BETDAQ which is an operator that specialized in betting exchanges. New customer offer.