Wagers made between people are in existence since the time of the barter system. They can thus be deemed to be older than money itself. Betting through bookies is a practice which is nearly 200 years old. However betting exchanges are only a decade old. They are thus very new. They allow the bettors a one – on – one experience of betting much like the old times.
A betting exchange is similar to a bookmaker or sportsbook. This similarity lies in the fact that it too allows the bettors to wager on various events.
However, there are many differences between them too.
These are very significant differences not at all casual or ordinary. The betting exchanges do not set the odds. It does not even assume any risks. The betting exchanges make their income from the commissions. These commission amounts are actually a small percentage of the net winnings. They are collected from every customer on each and every event or in every kind of market.
In Lieu of this commission the betting exchanges act as a matchmaker in the sense that it pairs up bettors on either side of the same bet. It holds their stakes until the result of the wager is known. It is also a clearing house as it also deals with the issue of the winnings to the bettors i.e. they also handle the distribution of the payouts.
They also keep detailed records of all their dealings and wagers and also of all the events that are bet on. Their archives are known to hold great information. This information can be used by bettors. This will enable them use this knowledge to their advantage.
The ability to set your own lines is what is great and also beneficial for experienced and pro handicappers. The betting exchanges take no positions on any offers and thus it solely depends on the bettors who are the subscribers of the betting exchange. The bettors can set the odds and/or the spreads and/or the lines for the wager. This is very attractive and appealing for a bettor.
Bettors have the freedom to lay odds. In any other form of wagering, the bettors can only wager on an event which is happening; but laying the odds on their own allows them to wager on something not occurring. For example you can place bets on the event of a certain golfer not making the first round cut or a football club not being relegated. They thus facilitate wagering on virtually any and every aspect of the game or the sporting event so long as you find backers for your wager.
Betting exchanges are extremely popular for live and in play betting, in fact these are known as its strengths. These are extremely popular and attract large audiences. This makes it very easy to find backers for a number of wagers or take up any offer. They make the whole experience of sports betting extremely exciting.
Due to its easy and flexible nature it is popular amongst both bookies and bettors. Bookmakers use it to balance their books or to hedge the large bets.