A betting exchange is an online platform where punters can place their bets and set odds against each other instead of a bookmaker

Through the betting exchange, players can either back bet (bet for an outcome to happen) or lay bet (bet on an outcome not to happen) and therefore gamble on both a positive and a negative outcome. 

A betting exchange allows bettors to set their own odds, thereby enabling them to earn larger profits. 

How does betting exchange work?

A betting exchange involves two types of players. One placing back bets and the other laying bets. Backing a bet is betting on the outcome of a particular event while laying a bet is betting against the outcome of an event. 

Back bets are similar to placing bets via traditional bookmakers. It involves selecting the outcome and deciding the amount to wager on. On the other hand, through lay bets, punters bet against the outcome of an event. 

For example, consider a cricket match between India and Australia. Through the betting exchange, punters can not only bet on the outcome of India’s victory but can also lay their bets on Australia not winning the match provided the bet is matched by another player on the exchange. 

Suppose, a punter places a bet on Australia not winning the match. He will win the bet if India wins. In the case of a player who has accepted the lay bet of Australia not winning the match, he is entitled to pay the stake with the winning amount to the other player. 

In the betting exchange, when a player chooses the stakes he is willing to accept, the liability amount is shown to the bettor. Punters have an option to accept stakes only if they have the amount in the exchange account that is able to recover the liability. 

In lay bets, it is important for bettors to understand the amount they are set to lose if they lose the bet. They can even make use of the lay bet calculator to evaluate the amount.

Advantages of using a betting exchange over the bookmaker 

Using a betting exchange over a bookmaker has many benefits. Some of them include

Provides greater choice for the punters

Betting exchange provides greater flexibility and more choice for punters to place their bets compared to a bookmaker. Earlier, punters had an option to place their bets on only the odds that the bookmaker offered. 

Additionally, if the bookie was unwilling to take a risk on the odds, players could not place their bets. With betting exchange, players now have an option to lay their bets and place the odds. 

Better value for odds

Betting exchanges provide punters with a better value for their odds. Bookmakers while setting the odds account for their profit by taking in a fraction of the amount. The odds offered by the bookmakers are therefore not the true odds. 

Flexibility for bettors 

The value of the bets keeps changing with the progression of the game. Through the betting exchange, bettors have the flexibility to lay their bets if required. For instance, if a bettor has placed his bet on a team to win the match and the main player of that team is sent off, punters can still avoid losing by laying their placed bet. 

How does a betting exchange make money?

Betting exchanges make money by earning small commissions on the winnings. The amount varies from 2 to 5% depending on the betting exchange. 

It is important for punters to factor in the commission amount for a particular betting exchange before placing their bets. 

What are the best betting exchanges in India?

Parimatch and Fun88 are two of the best betting exchanges in India. 

It is important to note that betting exchanges in India are limited and only a few websites have the betting exchange feature available on their platform.