According to some players, wagering on a betting exchange platform is much more exciting than on a traditional betting site. Additionally, betting exchanges give users access to more odds. This article will outline some of the differences between these two kinds of platforms.
What is meant by betting exchange?
Over the course of the last ten years, betting exchange sites have enjoyed great success. Yet, gamblers, more informed than ever before, have remarked that they weren’t able to choose from among a range of bets. Even though the use of the term “odds” and the mechanics are the same with a traditional bookmaker and as they are on a betting exchange site, these two betting styles still have distinct traits.
Betting exchanges are companies that take bets just like a traditional bookmaker. The bookmaker determines the odds and suggested limits; in case of a winning bet, they collect money on losing bets and must reimburse the winner. Conversely, a betting exchange service pits gamblers against one another. They have the chance to advertise their odds (Lay) or to wager on the outcome (Back) of a game.
While betting exchange sites generate revenue by deducting a commission on all clients earnings, bookmakers earn their profits by supplying odds that may not represent the real probabilities of particular game.
What about its pros and cons?
A betting exchange site is simply a platform for betting money. Even though this system has many positive points, it also includes some negative aspects that are often ignored. Among the benefits of betting exchange sites that should be noted is it that they do not make money off bets by taking a margin. This means that opposed to bookmakers, these platforms provide gamblers with the best odds. Another benefit is that gamblers have the chance to choose the kind of investments they want to make in order to guarantee their income. While the odds that are available through betting exchange sites may be tempting, the rate of return on winning bets still depends on the liquidity of a given market.
The system implies that players must depend on markets issued by other bettors. Furthermore, before it is even permissible to place a bet on any kind of event on a betting exchange platform, another punter must first be sufficiently well informed about offering this kind market.
Trading odds vs bookmaker’s odds
Calculating profits from betting exchanges is normally based on a 5% rate of commission. Of course, it is possible to be charged a lower commission depending on a player’s betting record (their earnings, the markets where they placed their bets and the amount of commission that they have paid), but at the same time they may also reach as high as 20%. It should be emphasized that odds represent just one element of the betting process. In fact, there are other factors to consider such as the variety of available matches and the betting limits.