Betting Exchanges
Betting Exchanges available through Free Betting Online
In the world of Online Betting, one notable phenomemon has been the rise of exchange betting sites. There are now a significant number of betting exchanges trading online, including such noteworthy sites as Betfair, Betsson, WBX and Mansion, who were Internet pioneers of the form.
Betting exchanges are unique in the world of online gambling in that they allow punters to bet against each other rather than against a bookmaker. This goes to show that online betting is breaking the boundaries of traditional betting and offering punters new, innovative ways to bet. Here is our quick guide to Exchange Betting and how it works.
The advantages of exchange betting
One of the attractions of exchange betting is that it usually offers consistently better odds than traditional bookmakers.
When traditional betting outlets set odds for an event, they usually write in a margin for themselves which will ensure that they make a degree of profit no matter what the outcome of that event. Betting exchanges do not make their money this way. In exchange betting, the supplier usually makes money through commission, that is by taking a small percentage of net winnings (kind of like ebay, except with peer to peer betting rather than peer to peer trading).
By bypassing the bookies and allowing punters to bet directly against each other, exchange betting takes the bookmaker"s margin out of the equation. As a consequence, betting exchange odds are often better than those set by traditional online/offline suppliers.
How exchange betting works
In exchange betting, punters bet directly against each other in a peer to peer system facilitated by the betting exchange. Bets are matched between players who are betting for an outcome (back) and those who are betting against it (lay).
"Back"
In betting parlance, to "back" an outcome is bet for it to happen. This works in the same way as a normal bet with a traditional bookmaker.
"Lay"
Alternatively, with exchange betting you can "lay" or bet against an outcome happening. When doing this, you more or less take on the role of the bookmaker. You offer the player odds for backing an outcome, and if they win, you pay out at the odds set in the same way that a bookie would. If they lose, you take their stake.
The benefits of this sytem is that it gives the punter the ability to choose odds. You can await odds that are better than those currently available. For example, odds tend to improve before a football match, horse race, or other sports event is about to start as, by that time, more people are entering the market.
Note that although betting occurs on a matched peer to peer basis between opposed punters who back and lay an event, punters do not learn the identities of those they are betting against. Confidentiality is protected by the exchange betting supplier.
Exchange Betting and Free Bets
One might be tempted to think that because exchange betting is predominantly a punter to punter system, free bets and other sign up promotions are not available. Thankfully, this is not the case. Betting exchanges usually offer the same free betting deals as traditional betting outlets. For more information on current free bet deals, click here.
Pick a Betting Exchange
The following online betting exchanges are currently listed in our directory:
Click here for our list of Free Bets suppliers.