Betting Exchanges

Betting exchanges
Betting exchanges have revolutionised the way punters bet. This concept enables people to bet person-to-person, as opposed to person-to-bookmaker.

Essentially, punters act as brokers, and can back a selection to win or lay it to lose. When backing a horse to win, it's the same as placing a bet with a conventional bookmaker; when laying a horse to lose, a punter will essentially be placing a bet directly with you, and if the horse loses, you collect that punter's stake.

So the principal is very similar to the workings of a traditional bookmaker, but the odds can often be greater - up to 20 per cent in fact. Although horseracing is the most popular medium, markets are offered on most other sports, including football, golf, rugby and tennis. Exchanges brought in-running markets to prominence and as is the case for the pre-race betting options, you can back a horse to win or lay it to lose in the in-running market also.

A punter can also request a price about an outcome of an event and hope that someone will opt to match the bet - this is the term referred to as 'matched betting'. Consistently successful punters often have their stakes restricted by traditional bookmakers in line with their risk management procedures, but no such conditions apply to the exchanges.

Betting in running
The advent of betting in running means that punters are no longer disappointed if they fail to place their bet before an event has started.

Traditional bookmakers don't offer betting in running on horseracing, but it's very popular with football, golf and cricket  events. In running betting on horseracing is commonplace, however, on betting exchanges such as Betfair.

Football is the most popular in-running betting medium with traditional bookmakers, and most offer a huge choice of markets, in many cases the options are almost as plentiful as pre kick-off.

The odds fluctuate in accordance with the way that the game is progressing. If, for example, Arsenal are playing Liverpool and they are 5/1 to win 1-0 in the correct score market prior to kick-off, if they go 1-0 up say halfway through the first half, their odds might tumble to 10/11 to win 1-0 in the correct score market.

If, however, it's still 1-0 at the mid-point through the second half, the odds about this outcome would have shortened significantly, to somewhere in the region of 4/9. Generally speaking, betting in running markets are offered on televised events.