Online Betting Exchange Strategy

If you have yet to sample the infinite delights of betting exchange gambling but are planning to do so sometime soon, we recommend that you take a minute to read the following information/advice so that when you register with your exchange of choice, you wont become an easy target for the experienced punters that you'll find there.

Terminology

Lay: You act as a bookmaker, offering odds, but hope that the team/runner/rider you offer odds on will fail to win.

Back (or buy): You bet on an event for which others have offered the odds. If the team/event you've backed wins, you will win your stake multiplied by the odds which were offered (minus a small commission payable to the betting exchange company)

Order: You can place an order in the betting exchange system, either a Lay- or a Back order. This is very useful as you don't have to keep checking back with the exchange at all times. Your bets will be automatically confirmed once a match is found.

How Does It Work?

If you place a bet with a bookmaker you are a passive customer. You cannot say to the bookie: "I want better odds on this event before I choose to bet on it !". The bookmaker offers his odds and it's up to you whether you want to bet on it or not. At a betting exchange, much of the same is going on. People act as bookmakers, present their odds, and you can choose whether to accept them or not.

Betting exchanges have software which compares the existing "Lays" to the existing "Backs" and automatically matches the orders. For those of you familiar with financial markets, there is a similarity here as there are numerous "lay-orders" and also numerous "back-orders" in the system, waiting to be matched.

The main difference between ordinary betting and a betting exchange is that you can place an "Order" which means that you can enter your betting criteria into the exchange's database and when a matching offer has been found, your bet will automatically be made.

Here's an example. You want to bet a home win on Liverpool v Tottenham but the only odds on offer are 1.5, and 1.45. You want at least 1.6 before you consider betting £100 on Liverpool. Therefore you enter your "Order" into the database (the odds you want and the stake you want to bet), and if someone later has layed an offer which matches your wish, then the bet will be matched.

The system works the same way for those who want to "lay" bets (act as the bookmaker). You can, for instance, lay Liverpool at 1.65 for £100, which is the same as saying " I don't think Liverpool will win this match. I'll therefore offer odds 1.65 on Liverpool, and I accept a maximum of £100 on the game. If Liverpool win, I will pay you 1.65 times your stake, If Liverpool lose or draw, I will win your stake". Note that there can be any number of punters who can accept this offer, as long as the total stake is not more than £100. This means that if someone else has accepted the bet ("backs") for £50, then you can maximum bet £50 on this match, as the "bookmaker" has set a limit of £100 on the bet.

Here's an example of backing a bet: Someone offer 1.50 on the home-win Man Utd v Bolton for a maximum of £100. You decide to accept ("Back") the bet. Then it's a simple procedure, just as you are used to with regular bookmakers. Click on the match, enter your stake, and the bet is on. Note that if you want to back Man U at 1.50, but you can only afford a £40 bet, not £100 as wanted by the person who "lays", then your bet will be taken for £40, and the rest on offer (now it's just £60 left as you've committed £40 out of the £100 maximum), will be ofered to other members who wish to back Man Utd at 1.50.

Here's an example of backing a bet with a limit: You want to back Man Utd at 1.60 for £100. The odds on offer are Man Utd at 1.50 and below. You will therefore want to make a "Back" order, for 1.60 at £100 on Man Utd. If someone shows up with a "Lay"-order of 1.60 and at least a £100 stake, then the full bet is on. If someone turns up with an offer of 1.60 but only a £50 stake, then your offer will be matched for £50, and the rest of your "Back" order (now £50 at odds of 1.6), will be available to others who want to "Lay" Man Utd for 1.60.

Here's an example of a "Lay" bet: You've analysed the match Norwich v Crewe, and you've decided that you don't think Norwich will win this game. You are prepared to offer odds 2.0 on Norwich, and you are willing accept bets on Norwich at odds 2.0, stake £200. Note that you may possibly lose £400 here if Norwich should win the game after all. Now you've got an offer out to the punters on the betting exchange and when they see it, they can choose to accept it or leave it. If it is not accepted, you may want to consider increasing the odds, for instance, to 2.10, and see if someone is tempted then.

If you see that someone has placed a "Back" order on the Norwich v Crewe game for 2.15, stake £50 on Norwich, then you may consider your options. "Can I afford to meet his demands. Is it too expensive for me to offer 2.15 on Norwich, as I originally just wanted to offer 2.0?". This is part of the excitement with this form of exchange betting. When you "Lay", you are the bookmaker. You choose what odds to offer.

Here's an example of a Lay a bet with a limit: You see that someone wants to bet on Villa v Charlton, at odds 1.6, stake £50. You have thought about publishing a "Lay" order on Villa, at odds 1.5, stake £100. You can choose to offer Villa at 1.6, but a stake of just £20 as you are unwilling to accept larger stakes than £20 at odds 1.6. Now the bet offer matches partially with the wishes of the person who wanted Villa at 1.6, for £50. You will accept £20 at odds 1.6 from this person.

As you originally thought about offering a "Lay" on Villa at 1.5 for £100, you can now offer a "Lay" on Villa at 1.5 for £80. Remember, on betting exchanges, YOU'RE in control.

So, having read the above, you think this is easy? You're thinking that any punter must be able to make money on a system like this? Well...that's almost the case. Not everyone can, but anyone who has a modicum of gaming experience, is interested in betting and who has some basic mathematical skills certainly can.

There are many betting exchanges on the internet, but we strongly recommend that you choose one of the recommended, reputable sites in this directory.