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Betting Exchanges
Betting exchanges are a interesting new phenomenon in risk markets which has turned the conventional bookmaking and gambling business on its head. Betting exchanges are gaining credibility and influence all the time and with each month that passes seemingly another country legalises the complete, and it would seem that it is only a matter of time before the large exchanges are completely legalised and recognized worldwide.
Another great attribute of a betting exchange is that if you don't like a price you can post a price of your own on the and then see if anyone one else is ready to ‘match’ you and thereby take your bet on. Put very simply, betting exchanges are a safe place where members of the betting public can exchange bets with each other incognito, at odds that they specify themselves. It seems that as betting exchanges are the way of the future, many companies have jumped on the band-wagon and have started new betting exchanges.
The Odds
Odds offered by betting exchanges on average are about 20% better than those offered by traditional bookmakers. When you compare odds at betting exchanges to odds at bookmakers, you should take the commission into account as you don’t pay commission at the bookmakers. There will still be occasions when a normal bookmaker will offer more attractive odds than those that are available on the exchanges. The odds you offer obviously need to be sensible in order to be matched, but if you are not satisfied with the current price being requested by other punters you can simply leave an 'order' in the exchange at your odds and hope that somebody eventually takes your offer. The attractiveness of using exchanges is there is no bookmaker, which means there is no edge built into the prices, which often results in significantly better value prices. Pro-gamblers work on thin margins, there are some that enjoy greater margins but they are the few, generally speaking most pro’s work to small margins and so a 20% increase in odds despite the commission which can be as high as 5% is a huge boon.
Betfair – No.1 Player
Betfair is the dominant player in the betting exchange market, with an estimated +85% market share by value. Betfair's exchange boasts a high degree of liquidity, across an extensive range of sports betting markets, alongside a professional customer service operation and a fully incorporated phone and internet betting facility. Unlike an established bookie, Betfair has no vested interest in the outcome of an event and therefore their interests are 100% in line with those who oversee sport.
In-running (betting while a sport is being played) is one of the features that really makes betting exchanges like Betfair come alive. The phenomenal success enjoyed by Betfair and others in the last 18 months is testament to the appeal of the product to the betting population.
Sports Betting
Sports betting is concerned with predicting sports results, while using the conclusion of a particular sporting event to make a bet. Horse racing and soccer are the largest volume markets but tennis, cricket and other popular sports also supply a significant amount as well. As sports bettors become more informed gamblers, an increasing number of players will move to the betting exchanges. For sports betting there are over fifty different sports on the exchanges covering events from 122 different countries.
Trading On The Betting Exchanges
Trading is like any other profession, it takes time to learn and there are hurdles to overcome. And as financial exchanges have proven to be efficient mechanisms for trading shares, options, and other kinds of securities, so have the betting exchanges proven successful in the world of online gambling. The numbers of people betting from home utilising the talents of the internet, continues to grow at breakneck pace and one of the largest areas of growth in Britain is online trading, both in sports and other markets. Exchanges are particularly good for dealing with in-running events, where using trading techniques similar to those used in financial trading, or by spread bettors, you can secure in a guaranteed profit before the conclusion of an event.
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