Betting Exchange Explained: Strategy, Calculator, Exchange Betting Sites

By placing both a back and a lay bet with different providers with ideal stakes on each, you can lock in a profit. We stated earlier that there are some, albeit few, bookmakers that will charge commission for both wins and losses, so essentially for every bet you place. They often lure you in with a low commission rate from the off, which many think will apply only to winning bets. By simply digging out a betting exchange that offers 1% commission on bets, comparted with 10% commission on bets, this punter is going to save £16,425 per year for placing the exact same bets. Learn how betting exchanges allow for real-time trading, empowering bettors to lock in profits or cut losses during an event. Learn the fundamental concept of betting exchanges, where bettors can both back and lay bets, creating a peer-to-peer betting environment.

• Interestingly though, if we took the best price from other bookies, we would actually be better off with the traditional bookmaker.
• They have free live streaming, masses of markets, fixed odds availability, and probably most importantly of all, a player base that allows you to match up on some of the more obscure betting markets.
• Understanding these commissions is fundamental for anyone looking to get involved with exchange betting in the UK.
• For example, lets say you place a bet on Manchester United to win the Premier League at the start of the season at 10/1.
• Smarkets, on the other hand, offers an attractively lower flat rate of just 2%.

Successful exchange betting requires discipline, research, and a clear strategy. Just like sportsbooks, betting exchanges allow bettors to wager on the outcome of games, seasons, and generally all of the same propositions offered by sportsbooks. Indeed, betting exchanges are basically the same as sportsbooks, except for a couple of key differences. The primary argument for the traditional bookmaker model over that of the betting exchange is with the promotions they offer. Because the odds are better and the exchanges are working on a smaller margin than the bookies, it means they are generally less generous when it comes to free bets and betting specials. Betdaq was launched back in 2000 along with Betfair Exchange but never achieved the level of success as their main competitor.

Overall, betting exchanges are excellent choices for bettors who are looking for greater flexibility and control over their bets. By understanding how they work and their advantages and disadvantages, you can make an informed decision about whether a betting exchange is right for you. The exchange is a beautiful way of betting for some, and a nightmare for others, but each to their own.

You can only lay on a betting exchange which is effectively a free marketplace for trading bets. For example, they typically charge a commission on winning bets, which can eat into your profits. In the competitive world of UK betting exchanges, understanding commission structures is not just helpful—it’s essential for maximising profits. Savvy punters recognize that these costs can take a significant bite out of potential earnings over time.

New Bookie Sites

This commission-based model means that unlike bookmakers, exchanges don’t need to limit winning customers or manipulate odds to protect their profits. Instead, they benefit from having successful users who generate more betting activity and commission payments over time. In the UK, savvy punters are always looking for tools to sharpen their betting strategies, and one such indispensable tool is the exchange betting calculator. This handy gadget helps you figure out potential profits or losses, considering commission rates that can eat into winnings. “Laying” the outcome (i.e. betting that it won’t happen) is what truly separates betting exchanges from sportsbooks in terms of opportunity.

That’s why, generally, prices are better with betting exchanges like Betfair, who claim that the odds are up to 20% higher. To conclude, betting exchanges present a number of unique opportunities to betters as a whole, especially those involved in matched betting. If the latter is particularly your forte, then we here at OddsMonkey are your specialists when it comes to this betting strategy.

In contrast, betting exchanges allow market forces to determine odds through supply and demand. Users can request any odds they desire, and if another user is willing to match those odds on the opposite side, a bet is formed. At this point, you may be wondering how exactly Betfair are making any money out of the exchange. Well it’s fairly simple, they basically take a commission on the transactions that punters like yourself are/will be doing. The calculations for the commission they take is they multiply your net profit with the market base rate. Put simply, if you place a bet and it wins, they will take a commission, if it doesn’t win, they won’t touch your money.

Our job was to simply enlighten you into the world of exchange betting and try to get you to understand exactly how it works and what’s required. Technically speaking you are increasing your chances to win with the options of lay and back betting. Also, with knowing that the bookie isn’t involved and all the odds are coming form either yourself or other punters, this gives you a great chance of getting better odds than the original bookmaker. The Betfair exchange was the first of its kind to be released back in the early 2000s. At first it was criticized massively due to the inconsistency of lack of understanding between the punters themselves. However, over time Betfair managed to control the amount of markets on the site and was able to create a simpler platform for the users.

This involves you predicting which way the market will shift in order to be successful. Implementing a hedge betting strategy is more cumbersome using fixed odds bookmakers. With spread betting, the functional differences between betting exchanges and sportsbooks are very minimal. Betting exchanges are online marketplaces where bettors wager against one another on the outcome of any sporting event. Instead of placing a bet on India to win, you can simply lay a bet on Australia to lose the match.

They also have an excellent welcome offer that is available to all new customers. There may be some new terms to learn and features to get to grips with but they’re really not that complicated and hopefully, this guide will help you understand how they work and explain the benefits of using them. Betting Exchanges, on the other hand, make money by charging winning bets a commission – the actual rate varies by exchange but is usually around 5%. What’s also good about Smarkets is that they too have include the 2% commission fee on net wins, which is one of the lowest structures that you can find. This, coupled with their impressive liquidity rates, has made them a more than viable alternative to Betfair in what is an increasingly competitive marketplace. So, in this example we would actually be better off using Betfair’s exchange over the sportsbook, even after commission.

Interestingly at Ladbrokes, there is no money at all for this price, with the best price being 1.49 with £4,425. Betfair has around 90% of the market share with Irish-launched Betdaq – sold to Ladbrokes in 2013 – the only serious contender with around 7% of the betting exchange market. Betdaq will have some serious financial backing under Ladbrokes’ ownership and it will be interesting to see how they go about trying to grow but for the time being it seems likely Betfair will remain number one.

Back Bet

Some exchanges operate tiered commission structures where frequent or high-volume users receive reduced commission rates as an incentive for continued business. This creates a more efficient pricing mechanism where odds often better reflect true probabilities, typically offering better value to bettors compared to traditional bookmaker margins. Exchange betting has modernised the gambling industry by creating a peer-to-peer marketplace where bettors can both back and lay selections, effectively acting as their own bookmaker. Mainly, it’s for matched betting as you can use the ‘Arbitrage or Hedge’ betting technique to have risk free betting. But it’s also used as some punters enjoy betting among themselves rather than against the bookies.

So, whilst you are settling a price of 1.90, if others are trading that same bet at 2.00, then punters are obviously going to take the higher price. If we were to compare the prices that you can get for each, Betfair has £16,781 at odds of 1.49 and Smarkets has £6,281, both more than Ladbrokes’ £4,425. The wager amount that you see below each price is essentially the amount of money that is available to take at those odds. For example, in the Betfair price for Brazil to win, there is currently £25,936 at odds of 1.50.

Exchanges

It may seem from the outside that they disregard bets that you win, but if you think about, on an exchange, for every single bet, someone will win, whether they have backed or layed the bet. Lay betting – is unique to roobet exchanges and involves betting against an outcome, effectively acting as the bookmaker. When you lay a selection, you’re offering odds to other users and accepting their back bets.