How to Use Betfair Exchange Instead of a Bookmaker
Betfair Exchange is the most popular betting exchange, a place where people can bet against other bettors and not against a bookmaker. It is different from normal betting websites. Many people use exchanges to make better bets and get better odds. Knowing how to use betting exchanges instead of a bookmaker will help bettors know their options better.
What is the Difference Between Betfair Exchange and a Bookmaker?
A bookmaker is a betting company that offers set odds for various sports events and markets. They are also known as bookies. People register in such betting platforms accept the odds and they bet against the bookies, without being able to change these odds. The odds prices entail a margin, a small amount a bookmaker sets in each odds price in order to ensure a profit regardless the result.
Betting exchanges work very differently. On Betfair Exchange, bettors offer their own odds for sports events and markets. Other bettors in the platform accept them or offer their own odds and wait for other bettors to match their bets. People bet against other people, not the bookie.
The betting exchange is only the intermediary between bettors. They just connect them offering the technology to ensure that odds prices update in time and the bets are settled quickly. Exchanges work with the backing and laying system. One person places a back bet on a team or player to win. Another bettor in the platform accepts the odds and places the opposite lay bet on that team or player to not win. The odds do not entail margins. The exchange charges a small commission fee on all winning bets.
So, in betting exchanges bettors can be a backer or a layer, something that is not possible in bookmakers where the lay option is not available. They can also set their own odds and get better prices most of the time.
How to Use Bets on Betfair Exchange?
To place bets on betting exchanges, bettors need to register on Betfair and follow their sign up and verification rules. As soon as their account is set up, they can login and navigate all the sports events.
The next step is to fins a match and choose a market, meaning choose a betting type, like how many goals will be scored in a match, or who will be the winner. Then bettors can choose whether to back or lay a bet. If they believe a certain number of goals will be scored, they can place a back bet on that market, set their stake and the odds and confirm the bet.
In order for the bet to be valid, another bettor in the platform must be willing to place the opposite lay bet and match it. When another person matches a bet, it becomes active. Bettors can place new bets during the event if in-play betting is available in order to maximize their profit or cut down their losses.
Why Use Betfair?
Many people like Betfair Exchange better than a bookmaker for various reasons. In betting exchanges, especially Betfair where there is big liquidity because a lot of people participate and a large amount of money is placed on many markets, bettors can find better odds. Because there is no bookie involved, the odds are not fixed and they don’t have a margin, so the prices are higher.
Another reason is that bettors can have more flexibility and more control. They can set their own odds if they are not satisfied with what is already offered. They can bet before a game and change their mind later by trading bets.
A key element of betting exchanges is lay betting that is not available in bookies. Bettors can bet that something will not happen, for example they can place a lay bet on a football team to not win a match. This means that if the other team wins or the match ends in a draw, the lay bet wins. This increases the chances of winning.
Are There Any Betfair Restrictions?
Unfortunately, yes. Betfair Exchange is now available in every country of the world. This happens for either legal or geographical reasons. Betfair cannot operate is certain countries because there gambling is illegal or it might not operate in other countries because of geographical and license restrictions.
There is a list available online that is frequently updated on which countries are restricted and they cannot have access to Betfair. Some of these are USA, the Netherlands, France and others. Before signing up bettors need to check of Betfair is available in their country.
In order to be able to sign up to Betfair bettors need to be over 18 years old and they need to show who they are by providing certain ID documents. For those who cannot have access to Betfair, Betfair has provided its technology and software to other betting exchanges that operate and “powered by Betfair” exchanges, like Fair Exchange, Orbit Exchange, Winfair24 and more.
People can try their luck there and have a very similar Betfair betting experience. There are some differences, like for example, lay option on horse racing is not available in white label exchanges and other small differences, but the main experience is very similar. Registration in such platforms needs to be through a betting broker, it cannot be done directly.
Betfair Exchange vs Bookies – Which is Better?
Betfair Exchange is better for people who want to find higher odds prices, to control better their bets, place big stakes, place lay bets and use live trading. Profits are usually bigger for the same bet placed on an exchange rather than being placed on a bookie because there is no margin involved in the odds. If the commission fee is less than 5%, it is almost certain that the profit will be better for the same bet.
Bookmakers are easier for beginner bettors that find the peer-to-peer betting system a bit complex. These platforms offer a better start and understanding of the basic rules of betting. Later on, and with practice they can try the backing and laying system on exchanges and expand their betting options.
In Short
Betfair Exchange is not like regular betting sites. It lets people bet against each other without participating in the bets at all, only charging a small fee on winning bets. Many people use exchanges instead of a bookmaker because they want better odds and the lay option. Before starting, it is important to check in which countries Betfair is allowed.