Online Betting Exchanges
One of the most fascinating developments in betting since bookmakers started taking bets online is the introduction of online betting exchange sites. Since the first peer-to-peer betting model was released around the turn of the century, online betting via exchange wagering have greatly increased in popularity at sites like Betfair.com. Like with most online betting sites, a betting exchange enables customers to place a bet on sports, and other markets, at fixed odds with one fundamental difference. When betting using an online betting exchange, the customer is betting against other customers, rather than the bookmaker or betting site.
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You have two choices of how to bet at an online betting exchanges. You can place a wager at advertised odds in the same way you would at any online bookmakers – except it will be another customer that is offering those odds. Alternatively, you can assume the role of bookmaker and offer odds yourself for other customers to bet on.
It is no exaggeration to say that online betting exchanges have revolutionised the betting marketplace. While the traditional model of placing a bet with an online bookmaker has remained commonplace and will continue to do so, the online betting exchange has opened up a whole host of new betting opportunities for bettors all over the world. The ability to lay bets – which is essentially to bet that an outcome will not occur - as well as back them makes for many more money making prospects.
One significant advantage of using an online betting exchange instead of an online bookmaker is the potential increase in value. All bookmakers have a built in profit margin in their books which is reflected in their odds. At an online betting exchange there is no bookmaker involved as you are betting directly against other bettors. As a rule, this results in advantageous prices in most instances. You do have to pay a small commission to the betting exchange on your bets, but this only payable on your winnings if you place or lay a successful bet.
For the serious bettor, the potential for making money using online betting exchanges is greatly increased, particularly when coupled with using an online bookmaker too. The odds at online betting exchanges tend to fluctuate far more than at the bookmakers, as it is the bettors themselves setting the prices. By carefully studying the markets, and the movements, at both the bookmakers and the betting exchanges it is possible to lay an outcome at a price then back it another and guarantee some profit. This is not easy to do, but it is possible with the right commitment and dedication.
The introduction of exchange betting has led to a new type of gambler, commonly referred to as a trader. A trader will use methods similar to those outlined above to regularly bet on all possible outcomes of a particular event at various different prices to try and lock in some profit. Gambling as a trader does involve risk and can be time consuming but the rewards are there for those who successfully pull it off.
Another major advantage of the online betting exchange, particularly for the professional gambler, is that an online betting exchange will not restrict the value of their wagers if they are consistently winning. Although most online bookmakers are usually perfectly content to see their customers win, if a particular customer is consistently winning with the vast majority of their bets, then they are likely to reduce the amount they are able to bet each time. This process is known as “factoring down” a customer and is done to reduce the exposure of the bookmaker. At an online betting exchange, you are always betting online against other customers so no matter how much or how often you win you will not have that particular problem.
Like many online betting sites, most betting exchanges also allow you to bet during the course of an event – known as live betting, or in running betting. Once again, the shrewd bettor can utilise a combination of sporting knowledge and fluctuating prices to maximise the value of their bets.
Betting exchanges have without question changed the landscape of online betting completely. They should not be seen as a replacement for the traditional bookmaker, rather as an addition, but there can be no doubt they have changed the way many people bet. With this major advancement in online betting, and the additional methods of wagering that have been created online betting exchanges can only be seen as positive for sports bettors the world over.