Betting Exchanges Terminologies: How Sport Betting Sites Compares

In our world today you will find a lot of platforms available for betting online.  These sites can be commonly broken down into two categories; classic betting providers and betting exchanges.

Both betting exchanges and betting providers are popular with many reasons to use both. For those who are curious about the difference between them below, we will provide key differences between the two and a comparison between the popular betting exchanges on the market.

Firstly, with betting providers, customers are required to place a bet offered by the provider so if the bet comes through you win, and if not, you lose to the provider. While betting exchanges work a bit differently in that bettors play against each other and you also get to set the odds. One player sets the odds and the others are expected to match them with the loser paying out to the winner. The betting exchange does not influence this.

The advantage of betting exchange is that unlike betting providers there are no profit margins when calculating odds which increases the odds massively. However because the betting exchange act as a meeting place for players to place their bets between each other they take a percentage of the winnings also known as commission and it can be as small as 1% to 5%.

While excited about the high odds that exchange betting provides, it is easy to forget that appropriate commission must be paid on the profit made too. When compared with the best odds of the service providers it becomes clear that there is no real difference between the odds from the betting providers and those from the betting exchange system. This is why it is always important to consider other roles that influence betting options.

Some Betting Exchange Terms

• Back betting

A back bet is when a player bet that an outcome will occur. For example, if you are betting against Chelsea to win against Arsenal, your place bet will be countered by another player that bets on Chelsea to not win the match.

• Lay betting

This is when players bet against a particular outcome occurring. It involves bettors placing a bet on outcomes they hope will not come through during a match.

• Matched Betting

Matched betting involves placing several bets to cover all possible outcomes of a match and provide a risk-free approach using betting provider incentives and free bets promotions. For example, if you place a back bet on Chelsea to win a match and a lay bet to not win a match while putting in enough money to ensure you don’t incur a loss, you have placed a matched bet.

• Liquidity

This is the maximum amount of money available to place a bet in the betting exchange market. Liquidity is important because every back or lay bet needs a big pool of money to ensure everything can be matched even at specific odds.

Some popular betting exchanges include Betdaq, Betfair exchange, Smarkets, Matchbook, Ladbrokes With Betfair exchange being by far the strongest and largest provider.

• Betfair Exchange

The world’s most famous betting exchange with a large range and the most gamers, with their sites available in Danish, Dutch, English, Polish, Spanish and more. It has a lot of activity within the markets so stakes always are not hard to come by. It has the most sports and markets than any betting exchange. It is known to have the most betting options particularly football and horseracing betting options than any other betting exchange with an initial commission of 5%.

• Betdaq

With a running time of up to 20 years, Betdaq is no newcomer in the betting exchange industry. They are known for having a mobile-friendly and easy to navigate website that has drawn a reasonable amount of bettors. They offer a lot of liquidity and all major betting markets to make sure their players can wager as they wish. They attract players with their wide range of betting options and attractive football bets and odds with a standard commission of 3% that can run to 0% for limited periods.

• Smarkets

It is the newest sports betting exchange with far fewer players than its competitors. Their website and mobile apps are easy to use with plenty of liquidity in place to attract its players. They have a 2% commission that proves to be competitive and gives them an advantage over other betting exchanges.

• Matchbook

Matchbook is one of the best betting exchange sites far and wide. It was founded in 2004 but gained massive popularity in 2011. Matchbook charges a 2% commission of winnings to gamers in ROI, Channel Islands, UK, and the Isle of Man while other gamers are charged a 4% commission. However, losing bets don’t generate commission. It also has an excellent user interface that ensures seamless navigation and enhanced security.

• Ladbrokes Exchange

This betting exchange acquired Betdaq in 2013 so we see that all bets placed on Ladbrokes betting exchange are fed into Betdaq betting exchange platform. Currently, Ladbrokes exchange charge a 5% commission on winnings, however, this can be reduced to up to 2% when customers accumulate 12,000 exchange commission points.

FAQS

CONCLUSION

When it comes to placing bets on the different betting exchange sites, being familiar with concepts such as laying, backing, and matched betting is important to ensure you enjoy maximum wins and profits. And if you came here looking for some of the best online betting exchange sites, we hope your curiosity has been adequately satisfied.