Betting Exchange

The betting exchange is an electronic peer-to-peer bets exchange platform between players or sports traders with opposing views. There is no bookmaker that lay the odds, but an authorised operator that manages and operates the exchange system. In this type of betting, the odds are higher than in traditional betting because there is no bookmaker's profit. The inventor in 2000 of the back and lay was Betfair, which is the world's leading platform. This betting mode is opposed by gaming operators as it is customer-friendly. The back and lay has many possibilities for risk reduction and the possibility to stop at any time thanks to the cash out. The Betfair Exchange is the company's own proprietary platform that is confused by most people with the term betting exchange.

The way betting exchange works is quite similar to a financial exchange: the bettor bets a odds of a sports market which is in turn layed by another user if the odds and the amount entered match. If there is no liquidity at the desired odds, the bet cannot be matched and awaits another user. In classic betting, the concept of liquidity does not exist as it is always the bookmaker who executes the desired amount if he deems it appropriate. In this mode, it is possible to lay ad odds, i.e. sell it to another bettor and, above all, do sports trading. By laying the odds, responsibility comes into play, which is one of the key concepts.

An example of betting exchange is to lay a live Juventus win at odds of 1.40 with a 100 euro stake and if the match remains 0-0 in the first half, cash out. With this back and lay bet you only risk the €40 liability and by going out at the end of the first half you have a certain profit regardless of the final result. With a traditional bookmaker this type of bet is not allowed.

The benefits are innumerable and there are no weak points other than a greater study of the subject dense with new concepts. The advantages can be summarised as follows:

• Higher odds on average by 5-10% compared to traditional betting. For example, the difference of sign 1 on the Premier League is in the order of 4-5% between exchange and sportbook;
• Live betting: you can back or lay at any time you see fit. There is no market suspension in case the bookmaker considers a goal possible shortly or in the last minutes of the match. Bets are placed by users and several profit opportunities are created for mistakes by the inexperienced;
• Possibility of making cash out: this option allows you to freeze and collect your winnings at any time without waiting for the end of the sporting event. The amount cashed out depends on the minute you want to perform the bet;
• Lay the bet i.e. playing against the event itself as the bookmaker does: the concept of liability namely how much you risk and have to pay if the outcome of the bet comes true;
• No fixed commissions: you only pay a commission on profits earned in the region of 5% with Betfair (depends on country of residence) and 2% with Betdaq 
• no government tax for most Countries. Profits do not have to be brought into the tax return. The winnings accrued are net, spendable immediately and do not need to be declared to the tax authorities;
• No closed gaming account if you win (the winner is welcome): if you generate profits your account is not closed because you are not 'enemies' but 'business partners' with the exchange operator who generates revenue if you make profits in the market. The traditional sports betting market is centred on the loss of the customer in order to exist and consequently the bettor is seen as an adversary to be fought with. Gaming accounts are not suspended or frozen for accrued winnings. Attention must be paid to how deposits and withdrawals are made and how often they are made. Frequent withdrawals and deposits are not recommended as the operator pays financial commissions;
• Transparency of the odds: on websites or software, the odds are always visible with the amounts available: the user always knows if he can execute his transaction.

The liability or risk is the amount you have to pay, by laying the stake, to the person who hits the outcome of the market you bet on. The liability is calculated with this formula = (stake layed -1)* (stake layed). The liability is not fixed like backing a odds but increases as the value of the odds increases. Great care must be taken when laying at high odds as the risk is high and this is the liability. Example: if I lay 5.00 odds with €100, the bettor who bets the same odds will win €400. Here that money the bettor collects is the liability of laying the odds. The liability is not fixed like betting a stake but increases as the value of the stake increases. One must be very careful about betting at high odds as the risk is high and comes with the liability. Odds are calculated based on many factors including statistics.

Laying on an odds means betting that a certain event will not occur: you go against the market and behave like a traditional bookmaker. For example if you lay the sign 1 or the win of Juventus vs Milan you have the win if Juventus does not win or draws or loses. The win will be the value of the layed stake while the eventual loss will be the liability of the layed stake itself. The betting exchange revolves around the concept of the layed stake which allows for odds trading, scalping and cash out. Laying the odds allows for sports trading and is the distinguishing feature and peculiarity between traditional betting and betting exchange.

Liquidity is the sum of all the back and lay bets present in each market on the exchange and for each stake level. Without liquidity within the market, no trade can be executed and therefore it is the fundamental and vital parameter for back and lay at the same time. If liquidity is low, the risk of the trade is greatly increased. The beginner is led to think that once you back or lay in the exchange you are immediately at a loss: this is not true because the potential loss is due to the back-lay spread. The narrower the spread (minimum difference between the two values), the more it means that there is liquidity on that market. Consequently, it makes sense to trade in markets where there are a lot of back and lay bets. The limitation of the exchange is precisely liquidity. The quantum leap will occur when and if shared liquidity is achieved..

The profit a bettor can make depends on the money he has in his gambling account. To make consistent profits, it is necessary to learn a serious method that uses statistics and use strict money management. Do not be lured by images of profitable screens or impressive winnings as they are the mirror to attract people into this business. There are no secrets or hidden methodologies that need to be revealed, but there is only the study of the subject and adherence to a precise plan of action. Everything here is entirely up to you and there is not and will not be anyone who will get in your way but yourself. The psychological impact and mindset is fundamental to becoming a professional sports trader. The gains can be substantial, especially when compared to the capital employed: the statistics and variables involved are all favourable to the end user. It is advisable before putting your money at risk to learn the basic principles and serious methodologies. Consequently, after understanding this key step, you will have the answer to the other fundamental question: how to earn money in betting exchange.

The differences with traditional betting are many and obvious and all favourable to the platform user. As a first aspect, it should be emphasised that the gaming account is not closed if the customer is a winner as there is no competition but sharing the same interests. If the customer makes a profit he pays a commission to the manager and consequently the account is not closed and one can operate constantly, even making it a profession. There is no welcome bonus but only a refund of the commissions paid as the manager does not earn on the client's losses: this is a positive aspect and not a negative one as many want to see. The odds in the exchange are higher than in traditional betting and in live betting they move steadily and not in 'spurts' as time goes by: there is no bookmaker lock when there are dangerous chances and a goal can be scored. It is possible to lay a odds and use the time decay to our advantage. On the other hand, it is not possible to play in a physical agency but only with an online gaming account.

The Betfair simulator has been temporarily suspended from the site and is unavailable. Our team has created a simulator where you can test your strategies in back and lay and see the liability for each trade, profit and risk return. You are encouraged to simulate with increasing step inputs if the market goes up over time to see where and when to green up or red up. The calculator is mainly used to simulate strategies in paper trading before using your own money. Probably the odds simulator with the video of the match next to it was suspended due to copyright of the TV rights. The simulator was very useful as it allowed one to see how the odds varied when one of the two teams scored a goal.

There are many betting exchange sites in the World with different features, functionality and liquidity. The main bets exchange operators are:

• Betfair who is the inventor and undisputed leader on live football, tennis, cricket, etc.
• Betdaq the world's second largest operator with approximately 8-10% of liquidity
• Smarkets focused on investment funds and sports traders
• Matchbook with fewer markets and a special commission calculation system
• Prophet Exchange (US market)

There are many betting exchange trading softwares that take advantage of the bees offered by the platforms. There are specific software for scalping, strategies or automatic trading. Each software has specific characteristics and consequently one should choose the one that best reflects one's operational needs. All software is for Betfair, some for Betdaq and Matchbook

The main and most popular software are:

• Traderline
• Geeks Toy
• Bet Angel
• Betting Assistant
• Market Feeder
• BetTrader
• Fairbot
• Wagerttool

All strategies have advantages and weaknesses. One must choose the right strategy for the market and the league we want to operate in. It is essential to follow the trend and in leagues where there is a lot of scoring, to make strategies focused on the over such as: bet on current over, bet on next step over; lay the draw draw, lay the opposite, lay exact results (second part of the match), bet BTS yes (both teams score yes); in leagues with a lower average goal it is advisable to make strategies on the under markets (time decay of the odds) such as: bet on under 2. 5, scalping on current under, progressive dutching on exact results, dutching, betting on draw with 0-0 insurance, betting BTS no (both teams score no).

No you can only bet or lay single sports bet. In the past on Betfair.com it was also possible to lay the multiples of your choice. The odds that were offered were at a non-value odds and were therefore unfavourable to the user in the long run. 

Of course it is possible and yours truly Gianluca Landi has been the example since 2007. To be able to make a living from exchange and become a sports trader who can withdraw every month from his gambling account you must: 

• change your mentality (not a gambler),
• study the basic concepts of this sector,
• carefully analyse the game by exploiting statistics,
• use correct and iron money management,
• don't go into over trading,
• don't think that there is a miraculous strategy or method,

Everything here is up to you, but commitment, study and self-denial are required as these are not bets but an underlying that you exploit to your advantage. High earnings are the result of a favourable event and high risk. The mentality has to be changed.

The literal definition of cash out is 'cash out now' and is an option that allows the user to exit the bet at any time either pre-match or live. A mathematical formula is used to split the profit or loss into equal parts at the current odds: from that moment on, whatever the final outcome of the sporting event, the gain or loss is frozen. We recommend using our point-to-point calculator to do this manually on two different bookmakers. With this manual mode you do it at the best odds and it is extremely advantageous. It is also offered on multiples, but in this case one must accept the bookmaker's offer.

Asianodds are the odds, or rather the Asian spreads of the most important bookmakers such as Pinnacle, Sbobet, 188 Bet, Crown bet etc, which suggest to bettors, sports traders, arbitrageurs and the bookmakers themselves the odds movements of a sporting event (football, tennis, basketball, etc). They are important for making a prediction of a match and serve to confirm a qualitative analysis made with football or tennis statistics. They play a key role in the final choice of strategy as the big money movements are concentrated on these Asian players. Those who have inside information, have the possibility of match fixing (match fixing) or big money (investment funds or big bettors) place these bets in the 15 minutes before the start of the event on these primary operators. Fifteen minutes before the start of the match on the Asians the bets have no limit. Asian spread analysis allows you to minimise rating errors and/or get further confirmation of your prediction as explained in how to read Asian spreads..