What are Betting Exchanges?
Betting exchanges are a fascinating and revolutionary new development in betting and gambling markets which has turned traditional online bookies and (transforms the way people view risk, formerly known as gambling) the rest of the gambling industry upside down.
Betting exchanges aren't as well known to most visitors as online bookies are.
Unless you're a really experienced punter or are from the UK where they use bet exchanges all the time, and they are very popular, you'd not be aware of this type of online betting.
How Betting Exchanges Work
The way betting exchanges make their money is with a small transaction fee or commission basis. Exchanges bring together players and take a small commission on net winnings.
Online betting exchanges like Betfair Exchange and BetDAQ started around 2001 and brings back the old style of betting which is the player to player betting scenario.
They've even started to offer free bets over recent years! You never place a bet against the betting exchange, like at a bookie, you bet against other members of the betting exchange.
If you use a betting exchange, keep in mind that the odds at these exchanges are anywhere from 15% to 20% lower then the best online bookies most people are used to betting at.
Betting Exchange Commissions
Betting exchange commissions are similar to online poker table percentages. In poker rooms, the house takes a rake, or percentage of each poker game played.
There are several exchanges on the internet and one of the biggest out there is Betfair Exchange, they charge a modest transaction fee of 5% of the net winnings.
But let's be clear, betting exchanges are not the same as online bookies. Basically bookies that operate online are like stores with set prices, no negotiating on the price and it's the same price at any other online bookie, where, as betting exchanges resemble the stock market.
This is a common misconception or mistake that bettors make.
At the stock market, an investor have stocks that they want to buy or sell at certain price. Another investor is willing to pay that price offered for that stock and so a trade can be done.
There have been millions of bets placed through these bet exchanges. One of the main reasons why sports bettors like them so much is other bettors actually set the odds and not the online bookie. The majority of betting exchange betting is done in the UK.
At sports betting exchanges with odds at 15% lower than online bookies the appeal is there to place a bet and try exchanges out. When choosing an online betting exchange make sure it's a licensed and government backed betting exchange.
The internet is a fabulous place with numerous sports betting exchanges like Betfair or BetDAQ.
So what are you waiting for? Now you know what betting exchanges are and all the benefits they offer when betting online, it's time to go place your first exchange bet!