A betting exchange is a whole new method of betting. It is
also not a bookmaker...
It can offer more competitive odds than a bookie, as well as
give you the chance to set your own odds
A betting exchange works by bringing people together with opposing
views to exchange bets between themselves.
The betting exchange acts as the broker between betters, ensuring
that the money is exchanged when bets are won or lost.
By removing the bookmaker from the betting process the margins
are removed. The result is better odds than those offered by
a traditional bookie.
There is also the advantage of only needing to pay commission
on your net winnings, not your stake. This way if you lose you
do not pay commission.
Look at the step-by-step tutorial explaining how to back and
lay your bets
with Betfair and check out the latest odds available
A betting exchange also allows you you to both 'back' and 'lay'.
When you 'back' a selection you are betting
on something to win. This works the same way as with a bookmaker,
except that the odds offered are typically better.
You can also 'lay' odds on a team or individual.
Here you offer odds against a win.
If the team or individual you lay against doesn't win, you
pick up the money staked, just as the bookmaker would. If they
win then you pay out.
Another advantage of a laying a bet is that you can choose
the odds, although people make the most money from a betting
exchange by offering the more realistic odds.
So beat the bookie, be the bookie and bet against another punter