How do Betting Exchanges work?
In Betting Exchanges you can make two bets, backing and laying.
Backing: is to bet for that side to win.
Laying: is to bet against that side to win.
The best way to explain is through examples. I am showing the market for which conference the Super Bowl winner will come from.
Presently you could back the NFC at odds of 1.83 for an amount up to $26, or back the AFC at odds of 1.85 for an amount up to $19.
If you want to back a side at a different odd or amount you can place the bet as you can see below I am placing a bet to back the NFC at 2.04 for $100.
Something different you get with Betting Exchanges is the ability to lay bets which does not happen in bookmaker systems. Below you can see I am laying a bet on the NFC at odds of 1.84 for $100. This means I am betting against the winner of the Super Bowl to be from the NFC.
Now as these odds were not being offered this bet will stay there until part of or all of it is matched. You can see the $100 at odds of 1.84 out there waiting to be matched by another bettor.
Bets placed that aren’t matched can be cancelled.
Betting Exchanges will take a commission, usually less than 5%. Betfair takes a commission between 2-5%.
Betfair holds 90% of the Betting Exchange market share.
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