Understanding Football Betting Exchanges: A Beginner’s Guide
What Is a Football Betting Exchange?
A football betting exchange is a platform where people bet against each other instead of against a traditional bookmaker. On a betting exchange, you can act as either the person placing a bet (called “backing”) or the person accepting someone else’s bet (called “laying”). This gives you more control and flexibility over your football bets.
Traditional bookmakers set the odds and accept your bets. Betting exchanges, on the other hand, allow you to set your own odds or accept odds offered by others. The exchange simply matches people who want to bet against each other and takes a small commission from the winner.
Key Differences Between Betting Exchanges and Bookmakers
1. Betting Against Other People
On a betting exchange, you are betting directly against other users. If you win, your winnings come from another person’s stake, not from the exchange itself.
2. Laying Bets
Unlike with bookmakers, you can “lay” bets on an exchange. This means you are betting that something will NOT happen. For example, you can lay Manchester United to win, which means you win if they lose or draw.
3. Setting Your Own Odds
You can offer your own odds on an exchange. If someone else accepts your odds, the bet is matched. This often leads to better (higher) odds than those offered by traditional bookmakers.
4. Commission
Exchanges make money by charging a small commission on your winnings. This is usually a percentage of your net profit on each bet.
How Does a Football Betting Exchange Work?
Backing a Team or Outcome
Backing means you are betting on something to happen. For example, if you back Arsenal to win, you are betting that Arsenal will win the match.
Example:
– You back Arsenal to win at odds of 2.50 with a stake of £10.
– If Arsenal wins, you get £25 in total (£10 x 2.50), which is £15 profit.
– The exchange takes a small commission from your profit.
Laying a Team or Outcome
Laying means you are betting against something happening. If you lay Arsenal to win, you are betting that Arsenal will NOT win (they either lose or draw).
Example:
– You lay Arsenal to win at odds of 2.50 with a liability of £15.
– If Arsenal does not win, you keep the other person’s £10 stake.
– If Arsenal wins, you must pay out £15 (the other person’s profit).
Matched and Unmatched Bets
When you place a bet on an exchange, it needs to be matched by someone who wants to take the opposite side. If no one matches your bet at your chosen odds, the bet remains “unmatched.” You can change your odds, wait for someone to match, or cancel your bet.
Common Terms in Football Betting Exchanges
Back Bet: A bet that an outcome will happen (e.g., Team A will win).
Lay Bet: A bet that an outcome will NOT happen (e.g., Team A will not win).
Odds: The price of the bet, showing how much you can win for your stake.
Stake: The amount of money you risk on a bet.
Liability: The amount you stand to lose when laying a bet. It’s higher than your stake because you are covering someone else’s winnings.
Commission: The fee the exchange charges on your winnings.
Matched Bet: A bet where both a backer and a layer agree on the odds and stake.
Unmatched Bet: A bet that has not yet been accepted by someone on the other side.
Practical Example: Backing and Laying in Action
Let’s say Liverpool is playing Chelsea. Here’s how you might use a betting exchange:
Backing Liverpool to Win
– You see odds of 2.80 for Liverpool to win.
– You back Liverpool with £10.
– If Liverpool wins, you receive £28 (£10 x 2.80). Your profit is £18 (£28 – £10).
– If Liverpool loses or draws, you lose your £10 stake.
Laying Liverpool to Win
– You think Liverpool won’t win, so you lay Liverpool at odds of 2.80.
– Someone backs Liverpool with £10.
– If Liverpool does NOT win, you keep their £10.
– If Liverpool wins, you must pay out £18 (£10 x (2.80 – 1)), which is your liability.
Why Use a Football Betting Exchange?
Better Odds
Because you are betting against other people, exchanges often have better (higher) odds than bookmakers.
More Flexibility
You can both back and lay outcomes, giving you more betting options.
Trading Opportunities
You can “trade” your bets, locking in profits or reducing losses by backing and laying at different times as odds change during a match.
How to Get Started with a Betting Exchange
1. Choose a Betting Exchange
Popular football betting exchanges include Betfair and Smarkets. They work in similar ways but may have different commission rates and features.
2. Open an Account
Register with your chosen exchange, provide your details, and deposit funds.
3. Learn the Interface
Exchanges look different from bookmaker sites. You’ll see columns for back and lay odds for each outcome. Familiarize yourself with how to select odds, enter your stake, and see your potential profit and liability.
4. Place Your First Back or Lay Bet
Decide whether you want to back or lay an outcome. Enter your stake or liability and confirm your bet. Wait for your bet to be matched.
5. Manage Your Bets
You can see your open bets and unmatched bets in your account. You can also cash out or trade during live matches if the exchange allows it.
Tips for Beginners Using Football Betting Exchanges
Start Small
Begin with small stakes until you understand how backing and laying work.
Understand Liability
When laying bets, always check your liability. This is the amount you could lose if the bet goes against you.
Check the Commission
Remember that exchanges charge a commission on your winnings. Factor this into your calculations.
Use the Exchange for Value
Compare exchange odds with bookmaker odds. If the exchange offers better odds, it might be a smarter choice.
Learn About Trading
Once you’re comfortable, you can explore trading strategies—backing at high odds and laying at lower odds (or vice versa) to lock in a profit regardless of the match result.
Common Mistakes to Avoid
Ignoring Liability
Don’t lay bets without understanding how much you could lose. Your liability can be much higher than your stake.
Chasing Losses
Stick to your betting plan and budget. Don’t try to recover losses by making bigger or riskier bets.
Forgetting Commission
Always remember to include commission in your profit calculations.
Not Checking If Bets Are Matched
If your bet is unmatched, it won’t count. Check your account to see if your bets have been matched.
Frequently Asked Questions
Is betting on a football exchange safe?
Yes, as long as you use a reputable exchange. Your funds are held securely, and the platform manages payouts.
Can I use a betting exchange on my mobile?
Most exchanges have mobile apps or mobile-friendly websites.
Do I pay commission if I lose?
No, commission is only charged on your winnings.
Can I cancel a bet?
You can cancel unmatched bets, but once a bet is matched, it cannot be cancelled.
Summary: Should You Try Football Betting Exchanges?
Football betting exchanges offer a different way to bet, giving you more control, better odds, and the option to bet for or against outcomes. They may look confusing at first, but with a little practice, they can be a powerful tool for both beginners and experienced bettors.
If you want more flexibility and potentially better returns, learning how to use a football betting exchange is a great next step in your betting journey. Start slowly, understand the risks and rewards, and enjoy the new possibilities that exchanges offer.