Already got a Betfair account? There are significant differences between betting with a traditional sportsbook and using a betting exchange. There are some important factors to consider before deciding which style of betting suits your needs. The most obvious factor is that with traditional sportsbook betting, you can only back the odds. With an Exchange, you can also lay the odds. These odds are rarely changed, unless there is a huge influx of bets placed upon them. A customer then places a bet on these odds, in other words, backing the odds.
If the bet wins, the bookmaker pays out. If the bet loses, the bookmaker retains the stake. On the Sportsbook, you can only back these odds. In other words, if you think England will prove victorious, you can place a bet on these odds. Using Betfair Exchange, you decide the odds. This can work in different ways. Firstly, using our example above, you can bet on England not to win the European Championship. Or, you can provide your own odds on England to win or not to win the Euros.
Other bettors who fancy England could then see value in these odds and take your price. If England do win, you will then be required to pay out. If you use the Exchange, your funds will be subject to commission. This is one of the drawbacks of Exchange betting. The commission charged can vary, depending on how much you win.
If you lose, you could be paying out a huge amount of money. This is merely an example of how exchange betting works. You will only be charged commission when you win a bet on the exchange. If you lose, no commission is due. You can reduce the commission rate by earning Betfair points. You earn points whether a bet wins or loses. The more points you earn, the bigger the discount on your commission. The MBR can alter, though.
Before you back or lay bets on Betfair Exchange, be sure to learn where the current Market Base Rate is set. A disappointing aspect of Betfair Exchange is their introduction of Premium charges. If you are hugely successful, and win vast amounts, you could be required to pay further amounts. Many Betfair customers use both the Sportsbook and Exchange facilities in their betting. However, once you get to grips with the, the more it will become clear whether the exchange is for you or the more traditional sportsbook that Betfair also have.
Betfair is the biggest online betting exchange in the world, and for good reason. The sheer number of markets available far surpasses those of their competitors, meaning greater liquidity and choice for bettors. Customers here have the option to bet on sports and events taking place across the globe. The value of Betfair Exchange odds is hard to match, too, particularly on the most popular leagues and tournaments.
Be aware, though, that you might find it difficult to find greater value in odds on less popular competitions, as you could at a standard sportsbook. Calculate how much will be returned to you after commission has been paid, and compare this to your possible winnings elsewhere.
Betfair Exchange further distance themselves from their competitors with their live streaming and betting options. There are a range of sports available to watch at Betfair. Selected football, snooker, tennis and horse racing are all options, amongst many others. To access a Betfair Exchange live stream, you need to have a funded account.
On to live betting. The in-play service available here is superior to that offered by many traditional bookmakers. Throughout an event, Betfair Exchange update the odds so you can see what other customers are laying and backing. Laying and backing bets live is also a simple process. Another pleasing aspect is that these features are available through your mobile browser and the Betfair Exchange app. As we touched upon earlier, Betfair Exchange markets are huge in number. This is particularly true when you compare Betfair to other exchanges in the UK.
It is also easier to place larger bets, which traditional bookmakers can shy away from accepting, on an exchange. There are far fewer markets on offer, and you are never guaranteed to find somebody to back your lay bet. You also cannot usually place accumulator bets, meaning bets with multiple legs will need to be made with a traditional sportsbook. The main way that betting exchanges make money is by taking a small commission on winnings. This is much the same business model as a poker room taking a rake in exchange for providing a safe and secure platform for players.
It is important to make sure you factor in this commission when deciding to use a betting exchange to back bets. The odds may be better, but it is important to make a like-for-like comparison to a traditional sportsbook to see which option would secure you the best net profits. The market leading betting exchange is the Betfair Exchange. They are the oldest exchange, having been formed in following a merger between two early online exchanges.
Since then they have lead the betting exchange market. As Betfair as the largest online betting exchange, it is often the most liquid market. This means that it is often easy to find other players to bet against and place larger bets. When we looked across a range of sites, we found that Betfair often had between two- to five-times the amount of money wagered on the exchange compared to their rivals.
Underage gambling is an offence. Please gamble responsibly and only bet what you can afford. For gambling addiction help and support, please contact the National Gambling Helpline on or via the NetLine. We urge you to turn off your ad blocker for The Telegraph website so that you can continue to access our quality content in the future.
Visit our adblocking instructions page. My details. My newsletters. Upgrade to Premium. Home News Sport Business. Betting Sports guides. Telegraph Betting Sports guides. Betting exchanges are different to traditional betting sites in that they allow players to bet directly against each other and set odds themselves.
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