Profitability Exchange Betting

Exchange Betting: is it really profitable?

While exchange betting may offer the same betting possibilities as a bookmaker, nevertheless there are some essential differences. Firstly, exchanges make money in a way that’s different from bookmakers. They also tend to limit odds in such a way that there is less money to be won in the case of a major victory. The following provides a closer look at this style of betting.

What is a betting exchange and how does it work?

There’s often a bit of confusion around the difference between a traditional bookmaker and a betting exchanges like Betfair, Smarkets or Matchbook.

Key Differences

First of all, betting exchanges generate income in a way that’s different from bookmakers. Bookmakers allow clients to place a wager on the outcome of an event, in turn they place the wager themselves by using their own money in case their bet wins. Betting exchange sites, however, do not make bets themselves but instead rely on other clients to lay down bets against each other. The betting market charges a small commission for every bet placed. These fees simply represent a percentage of estimated winnings.

Secondly, betting exchanges are not as flexible concerning the outcome of an event. The client cannot determine the outcome themselves. They also tend to limit odds in a way that, in the event of a major win, the amounts won will not be very significant.

Finally, betting exchanges often have better odds than bookmakers. This is because they operate in a free market and because their odds are regulated by the punters, even though bookmakers establish their own odds. This allows clients to find the best value for their money which largely explains why exchange betting is so popular.

To put it simply, a betting exchange refers to bets made against other people and not a bookmaker. This means that punters can place a normal wager or they may choose to assume the role of bookmaker and offer odds that something will not happen.

The most important thing that must be understood is that a betting exchange and a bookmaker’s site are two different platforms. Whereas a bookmaker gives you the chance to bet directly, betting exchanges allow gamblers to bet against each other. Therefore betting exchange sites act as mediators. They make their profits by charging commissions on winning bets.

Exchange Betting in practice

Betting exchanges tend to have better odds than bookmakers do. But as previously mentioned, they can deduct commissions as high as 5% on winning bets, which is therefore something that needs to be taken into consideration. For lower odds, they would be close to bookmaker’s odds, but for higher odds, exchanges will almost always have higher odds.

To sum up, exchange betting enables gamblers s to set the odds and to determine the amount of money that they seek to win. Those who can make a corresponding bet, therefore have a chance to win big. On traditional sites, bookmakers lower their odds depending on player and team statistics.