Introduction to Betting Exchanges and Lay Betting
Why A Betting Exchange Offers You The Key To Successful
Gambling
--> Introduction
Too many gamblers are still living in the 'dark ages' and will
only ever place a bet with a traditional bookmaker. They either
can't be bothered to learn how the exchanges work or simply
don't realise the features and value that can be had when
betting within an exchange environment.
Believe me, using a betting exchange is very easy, and if you
are not already using at least one exchange you should join one
immediately after reading this article...
I'm not saying that a betting exchange should be used for all
your betting. There will still be occasions when a traditional
bookmaker will offer more desirable odds than those that are
available on the exchanges. However, in the majority of cases
you will find better value on the exchanges and additionally
there are other VERY IMPORTANT features that only the betting
exchanges offer. More on this later...
--> So What Is A Betting Exchange?
Put very simply, betting exchanges are a secure place where
members of the betting public can exchange bets with each other
anonymously, at odds that they specify themselves. The exchange
companies simply act as the 'middleman' and match peoples bets.
As there are no bookie margins to factor in, prices are very
often more desirable. The betting exchange companies make their
money by taking a commission payment on your winning bets. This
is usually in the region of 3 - 5%, but even taking this into
account, it's very common to find better prices on the exchange.
The cumulative effect of better prices when combined with a good
staking plan, can make the difference between you generating a
healthy profit or a bad loss. Using an exchange does not mean
you will automatically win more frequently! You still have to
find good value winning bets yourself or via a professional
tipster but it's the effect of getting a better return on your
winning bets that will boost your betting bank and protect you
during losing streaks.
Most people use the betting exchanges on the internet, but you
can also place bets on the telephone.
--> Betting Exchange Advantages
As well as regularly finding better prices when backing a
selection, exchanges also give the gambler some other very
important advantages over traditional bookmakers.
--> Some of the key advantages are:
1) The ability to LAY a selection if you think it will not win.
2) The ability to BACK or LAY a selection to be PLACED. (This is
very different to the well know Each Way bet offered by bookies
and can be very powerful).
3) Betting IN RUNNING on many events INCLUDING HORSE RACING.
This can give you many advantages and opens the door to new
methods that may secure you more profits.
4) If you are very successful, you will not have the exchange
company threatening to shut your account down.
5) The ability to TRADE on price movements in betting events to
guarantee yourself a profit regardless of the result.
6) Arbitrage Opportunities. Bookie and exchange price
discrepancies often allow you to take a NO RISK bet.
Those are some of the key benefits of using a betting exchange
and I will dig deeper into these and explain how you can use
them to your advantage in future betting articles.
For the remainder of this article, lets concentrate on point 1,
LAYING a selection to Lose.
--> LAYING To Lose - A Major Advantage Of The Betting
Exchanges
Probably the most important feature of a betting exchange is the
ability to LAY a selection. But what does laying a selection
mean?
Laying a selection is often referred to as 'Playing the role of
a bookmaker'. Like a bookie, you offer a price against a
selection / event happening (eg. a certain horse to win a race
or a football match ending as a draw). You only do this if in
your opinion there is a great chance that the horse won't win or
the football match will not end as a draw. The betting exchanges
simply match your lay bets with other customers who think the
opposite of you (eg they think the horse will win or the match
will end as a draw).
--> Lay Liabilities
The odds that you offer determine how much money you will need
to 'pay out' if the selection actually wins (just like the
bookie does when you have a winning bet with them). So if you
were to place a lay bet of