Exchange Betting Guide | Betsquare

The traditional form of betting is when a punter visits a bookmaker, is given odds, and places a bet based on those odds; this binary online betting method is the most common choice for many people, but perhaps you haven’t heard of exchange betting. A betting exchange is a fascinating way for two people to place bets against each other across various sports.

At Betsquare, we want to introduce you to a betting exchange, an increasingly popular form of online betting. We will discuss what you can expect, the benefits of using this sort of platform, and the risks involved. Our in-depth review will examine the critical aspects of exchange betting based on our

Exchange betting means two punters are allowed to bet against each other. Rather than accepting odds that a bookmaker provides that one bettor either wins or loses, a betting exchange means a third party is involved – another punter – and the bookmaker acts as the commissioner.

The second punter wagers a lay bet, banking on the first punter’s selection not to win. Exchange betting can apply across numerous sports, and the odds tend to depend on the number of possible outcomes and the odds the first punter was given to win their bet. 

The opportunity for lay betting isn’t possible with traditional bookmakers, who grant one punter the chance to place a bet on an outcome at agreed odds, and nobody is betting against the punter for any other outcome. With traditional bookmakers, you can bet on Team A or Team B winning, for instance, and don’t require an opposition to bet on the other outcomes.

Let’s look at how exchange betting works in practice. Let’s say that Bettor A wants to bet £20 on a horse to win at odds of 5/1. In this scenario, Bettor B can bet on Bettor A to lose their bet at 1/5 odds. Because Bettor A can win £100 plus their returned stake of £20 if their selection wins, Bettor B would need to wager £100 for any other horse to win the race to win £20. This is known as a lay bet in the gambling industry.

Betting odds related to exchange betting generally reflect what the other person has been offered, so if one player is betting on 10/1 odds of something happening, the other punter will get odds of around 1/10, depending on the sport and the bookmaker’s terms. However, proposing sports betting odds for the other bettor is possible on specific platforms and is part of the interest regarding the betting exchange. 

The terminology concerning this style of betting is straightforward once you know it. There are back and lay bets: back betting means you’re betting on something to happen or “backing” it to happen. However, lay betting means you expect something not to happen and are betting on the other person’s bet to fail.

One of the significant benefits of exchange betting is the possibility of choosing the odds that work for you. Of course, you’ll need somebody to accept the odds that your bet won’t happen on the betting exchange, as it wouldn’t be possible to perform exchange betting without lay bets. 

All this means that you’re likely to get better odds than you would do with a traditional bookmaker, assuming you understand the sport you’re betting on and you have a willing party betting on the other outcomes.

The bookmaker acts as a commissioner to ensure fairness and that both parties understand what they are betting on, almost like an adjudicator. Knowing that somebody is there to keep the bet as fair as possible and that nobody is being exploited makes for a more exciting bet and protects all players.

Competing against a bookmaker, although it can be fun, lacks the added element of competing on one against another bettor. When two parties are sure what the outcome will be and are willing to bet on the odds agreed on, it adds extra excitement to the eventual outcome of the bet.

Exchange betting also means you can hedge your bets for more significant insurance should your original bet not come in. It makes the risk of betting on long odds that you’ve negotiated with any punter worth it if you can secure low odds for your lay bet in case the other outcome occurs. 

This means that, although you could receive a big payout if your bet wins, you’ll receive at least a reduced amount of winnings if the opposite occurs, meaning you still turn a profit, just not as much as you’d hoped.

Trading bets is slightly more complicated but can be achieved on the betting exchange. If you and another party are fixing odds for an upcoming horse race, for example, you might place a £10 lay bet against a horse with odds of 10/1 (meaning you’re backing the horse not to win). 

Once this bet has been agreed upon with another party, you can propose odds of 11/1 on the same horse and put the same stake down, but this time, you’ll back it to win. This means that if the horse doesn’t win, you break even, but if the horse does win, you’d win £1. Therefore, as you’ve negotiated these odds, you won’t lose money, no matter the outcome.

Which sites are among the top exchange betting platforms? The best betting exchanges involve platforms with many players and markets for those involved to explore. While traditional betting doesn’t require another punter, it might not have the same thrill that those in our betting exchange review possess.

Unfortunately, the legal status of betting exchanges in Australia is complex. Betfair appears to be the only website with an accessible platform for Australian gamblers to wager against others online in this sense. Exchange betting may soon become more of a household form of wagering in the country, but for now, Australian players are limited in choice when betting on the exchange. 

Betfair is the largest and most well-known betting exchange site globally, hosting countless players looking for an array of markets for the best outcome for them. The British company was founded in 2000 to allow players to negotiate odds with other punters for a more engaging experience. 

The company employs several thousand people globally and has millions of customers using the service on the app or website. In Australia, the company is fully licensed and regulated under the Northern Territory Government of Australia. 

Betfair provides expert tips and analysis for the most significant events and many other markets for various sports worldwide. There is also an educational centre for those unfamiliar with exchange betting but wanting to learn more.

Our best betting tips when using a betting exchange include laying after you’ve backed a bet or vice versa. The beauty of exchange betting is that you can get the odds you want if there is a willing taker and then look to protect potential losses by placing a bet on the opposite to occur, but with more favourable odds. Although big winnings will be limited doing this, you could make a small profit each time and at least break even if you calculate the odds correctly.

If you can’t find a willing taker for your odds on the betting exchange, consider arbitrage betting on other websites. You’ll need to visit another website to get more favourable odds to hedge your wager and protect your losses. Arbitrage betting is common among regular bettors who gradually increase their account balances. Bookmakers struggle to stop this because every one of them lists different odds, even if they’re relatively similar.

We suggest that you initiate yourself with exchange betting by watching online videos illustrating how it’s done, building your knowledge to form better trading strategies. Rookie bettors will place a bet on one outcome and might even win some money, but this isn’t a fruitful long-term strategy. 

Also, listen to the experts when they tell you the best exchange betting strategies; this is a surefire way to limit your losses and at least break even when you regularly bet. Without formulating a plan and wilfully betting on anything you fancy, your betting balance could decrease quickly.

A betting exchange is an enticing way to get better odds from your wager, and our final thoughts on exchange betting reiterate that this form of betting is best used to limit how much you might lose and make regular incremental gains. 

Of course, you must know how the odds work and the risks involved with placing a lay bet and a back bet, but once you do, you might find it a better way of wagering than you would with traditional bookmakers. 

This exchange betting review summary feels that exchange betting is worth exploring if you can access a betting exchange platform. Why not test out exchange betting for yourself to see how it compares to other forms of betting via online betting sites? Check out the rest of the Betsquare website if you’re curious about our list of bookmaker examinations and casino reviews.