EXPERTS HOT NEWS What Bettors Should Know about Betting Exchange 5 years ago Adeleye Awakan Post Views: 1,242 Africa is relatively experiencing rapid growth in the gambling industry year on year. However, this could say sports mainly have played a significant role in influencing the young Africans, coupled with the digital transformation the continent is experiencing thanks to mobile-first and the enabling business environment of the African states. However, as the numbers of punters kept on increasing daily as well as players’ behaviors are evolving, compared to the conventional ways of wagering on bets in shops, at the same time punters are always seeking for the best way to win a chance on a bookmaker’s platform. However, the betting exchange could be the best solution for punters, given them another dimension to wager on bets and give you the flexibility to set your odds. Understanding Betting Exchange? Betting exchange is an online service, which allows punters to bet against each other on sports and range of different events. Further, if you are familiar with the traditional bookmakers, thus you are in control of your odds and winnings, a betting exchange can appear complicated. But once you appreciate the differences and understand how they work, there are plenty of opportunities to trade and take advantage of the increased value, whether it from getting better odds or locking in a profit before the result is even known. The betting exchange simply provides the platform and pairs bettors against each other for bets to take place. The exchange is usually a bookie that receives a commission for this service, commission charge range with different bookies. For instance, some of the bookies that offer such services include the Cyprus based company 1XBET provide such services. Another is BETFAIR exchange, and Puntersclash provides such services on its platform. How dose betting exchange works Instead of being limited to the odds set by bookies and only having an option to back the result, the betting exchange allows users to go head-to-head against each other and create their markets, one backing, and one laying. For instance, if you think the football team you want to back is going to drift to a higher price due to team news, you can put a request up and set a higher price currently available. Another user may think you are wrong about your prediction to be prepared to match your bet at a higher price. For example, how a betting exchange works. You and a friend are watching Chelsea vs. Man City. You believe Chelsea will win, while your friend disagrees and believes Man City will win, while your friend disagrees and thinks City will claim victory. He offers you odds of 2.00 (evens) that Chelsea won’t win. You both agree to bet $50. If Chelsea wins, your friend pays you $50. But if City wins, you lose and pay up the $50 to your friend. In essence, this how a betting exchange works, matching bettors with differing opinions on a given result which, via the exchange, agree on both the stake and the odds. The ability to both back and lay an outcome is one of the main interests of the betting exchange model. The flexibility for users to act as either bettor or bookie is similar to a stock exchange, with traders buying (backing) and selling (laying) shares on event outcomes rather than commodities. However, understanding the terms backing and laying is as follows. When placing a back bet, you are betting for an outcome to happen, as stated earlier, Chelsea beat City. You only win the bet if Chelsea wins the match. Further, when placing a lay bet, you bet for an outcome not to happen and playing the role of the bookmaker- for example, Chelsea will not beat City. Difference between betting exchange and a Bookmaker As a peer-to-peer platform, a betting exchange acts like a stock exchange, with users buying (backing) and selling(laying) odds on particular outcomes. Bet both sides of the market, as mentioned earlier, the betting exchange gives the user the ability to both backs and lay an outcome. These allow users to trade positions much like a broker would the stock exchange, assessing the market as the event is live in-play, while at a bookmaker, you can only back. Best odds when betting on bookmaker platform, you can only bet on the odds they offer, which includes their margins-which can be as high as 20%, meaning they price markets in their favor with unfair odds. You can learn how they reduce your chance of win big when I go deep to explain what is margins to you while, in comparison, a betting exchange offers more competitive odds due to its nature as an intermediary peer-to-peer platform. Simply the market is driven by supply and demand, which results in better odds than the traditional bookmaker. You are guaranteed profit given the exchange allows you to back and lay, you can trade out, place a bet on the opposite outcome to abet you have already placed. You can do this to guarantee a profit, reduce your exposure, or cancel a previously matched bet on the same market. No account limits, while bet restrictions are familiar with bookmakers, vary across the industry; however, there are no specific betting limits on an exchanger. Instead, the amount you can bet is determined by the liquidity, meaning the amount available to gamble in a particular market. Though, betting exchanges have disrupted the betting industry and are preferred choice for educated bettors. The big question is, will it be the next big thing in Africa gaming space? About Post Author Adeleye Awakan Author E-play Africa, sports betting reviews, thoughtful leardership articles in Africa gambling industry, marketing gaming platforms in Africa with strong networking relationship with gaming operators in Africa, Expertise in PR, marketing communication, and consultant on gaming in Africa. See author's posts Adeleye AwakanAuthor E-play Africa, sports betting reviews, thoughtful leardership articles in Africa gambling industry, marketing gaming platforms in Africa with strong networking relationship with gaming operators in Africa, Expertise in PR, marketing communication, and consultant on gaming in Africa. 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