Beginners Guide to Sports Betting Exchange

A sports betting exchange (otherwise shortly called betting exchange) is a trading platform that is very similar to the traditional stock (financial) exchange. As a member of the sports betting exchange, you have the ability to place bets on the particular sport market (or many different sports markets) that are matched-up with other member's bets, on the opposite outcome to your selection.

When you place a backing bet at traditional bookmaker, you bet against this particular bookmaking company. At the exchange, you bet against unknown members of the betting exchange, not against the exchange itself. We are sure that this is the background difference, between betting at traditional bookmaker and the sports betting exchange.

Please note once again that betting exchange is not a bookmaker. The betting exchange is a trading platform where active members bet against each other. The exchange provide all the necessary technical infrastructure and charge small percentage commission that is deducted from the winning bets.

How sports betting exchange makes money

A betting exchange profit come in the form of a commission rate that is applied only to the winning to the very winning bet that was matched on the market. The commission rate vary from one exchange to another, and is 5% on average. As the competition between exchanges heat up, we could see some lower commission offers on the market, in the future.

Some exchanges could offer you lower charges in return for a user's loyalty or for the high amount of betting activity. For example, when you become active bettor at WBX sports betting exchange, you can accumulate loyalty points that result in lower commission rates in the future. The number of loyalty points you collect determines the level of your WBX loyalty discount.

It seems that betting exchanges love when you bet frequently and have fun, using their services. More bettors means liquid markets, more commission and happy clients (mean bettors).

You also need to be aware that the world's largest exchange called Betfair levies the so-called "premium charges" on the winnings of their more successful and lucky customers, and the mentioned charge could be as high as 60%. We are not (and never become) customer of Betfair and prefer using other sports betting exchanges, like Betdaq, WBX and Smarkets.

The major advantage of betting exchange

The major advantage, could become described as the ability to ‘lay' an outcome of a particular sport event. "Lay" bet is the opposite situation to the "back" bet. In the "lay" bet, you are simply betting on it not to win.