How does the betting exchange work? This is certainly the first question that arises who hears this term or reads on some website an article that deals with the topic. Upstream of this fateful question we must ask ourselves, but what is the Betting Exchange or as a further synonymous “back and lay
What is the betting exchange
This new mode of betting is based on the same principles of the financial markets, with the difference that instead of exchanging shares or futures, in this case the exchange concerns the results of sporting events (odds) and takes place between two players with opposing opinions. The counterpart of the bet will not be a bookmaker, as in traditional cases, but one or more bettors. The betting exchange system between players offers a number of advantages and no real specific disadvantage (see also the betting exchange advantages). The betting exchange was born in 2000 by Betfair, the company founded by a bettor and a professional trader who have understood in advance the potential of P2P applied to the betting world.
Stop to intermediaries or bookmakers who are in contrast with the customer, but an exchange platform where everyone is put in the same conditions.
How the Betting Exchange works
When operating in the Betting Exchange, you see a set of odds and volumes on the platform that represent bets placed by the other members of the betting exchange platform (or other players). At this point it is possible to decide whether to buy (back) or to sell (lay) at the price that you want, but keeping in mind that there will be other bettors who are willing to act as counterpart. Without the necessary liquidity in the betting exchange platform you can not match our bet that will remain “unmatched”.
Here there is not a bookmaker who can satisfy all our requests for the amount that we want to back, but the liquidity must be present at the odd we want, to be able to match our bet.
To better understand the operation of the betting exchange and especially the rules of the betting exchange, we try to reconstruct a typical situation.
Example of a draw odd variation
We always assume that a result of a football match for example the draw of Steaua Bucharest and Mancester City present pre-match the back odd of 4.2 with an amount to match of 867 euros.
With traditional fixed odds bets, the bettor can only bet the draw and wait for the end of the match. If the final result is the draw, the player wins the amount bet for the odds.
In the betting exchange instead the user can bet the draw before the start and exit for example at the end of the first half if the game is still in draw condition. The odd in this new mode does not remain fixed but varies with the passing of the time factor, allowing to apply the cash out to guarantee a mathematical profit.
Suppose that at the end of the first half the score is still 0-0 and the odds have fallen to 2.80. Going to bet on the draw 100 euros to 4.4 you leave the position at the end of the first half doing the green up at 2.80. By entering the data within our green up calculator you get a net profit of 54.80 euros! From this point on, whatever will be the final result, we have frozen the profit and obtained our winnings.
This is the betting exchange, or the possibility of securing a certain profit at any point in the game. Is this possible with the traditional bookmaker? The answer is NO!
How to make money
Before starting to earn in the betting exchange it is essential to understand the logic of operation and for this purpose it may be useful to read our simple guide on the betting exchange that explains all the steps to be taken. One of the initial steps that we recommend to understand if this new mode is for us, is the reading of the book “Betting Exchange - The Sports trading revolution”.
To understand in depth how the betting exchange works and above all to take immediate economic benefits, we recommend to attend a betting exchange base course or, if you intend to turn the sport trader business into a real profession (part time or full time) take part in the football trading course held by Gianluca Landi which is an operational course because the concepts previously explained in a theoretical way are put into practice.
How the betting exchange works in a superficial way is not very complicated to understand, but to understand its functioning in all aspects and peculiarities it is necessary to study in depth the topic and to practice a lot with real money on the market.
The video “how the betting exchange works” was created by Gianluca Landi to quickly understand who starts in this sector on which principles “back and lay” is based and how it can be used. Clearly it is a short introductory video that does not pretend to explain everything and above all it helps to arouse the interest to deepen the topic. Lately many people are approaching this sector that at first sight is exchanged for a game or a bet, while in reality it is a new form of financial investment that must be well understood.
It is advisable to carefully read the book “Betting Exchange - The Sports trading revolution” to get a 360 ° overview of this new method and then understand if it is worth deepening and making it a real profession. Before starting it is recommended to everyone to understand the rules and not waste the money.
- Written by: Gianluca Landi
- Category: Betting Exchange Guide | The ultimate guide to back and lay