How Exchange betting works

How does exchange betting work? How are they different from Sportsbooks? What is a back order vs a lay order?

How Betting Works on Exchanges

When you choose to place a bet with a sportsbook like Bet365 or Ladbrokes, you are choosing to make a bet at the price that the sportsbook offers you. The sportsbook is on the other side of the bet. You win, the sportsbook loses. The sportsbook wins, you lose. With a betting exchange such as BetDEX, you have more control. Not only can you choose to make a bet at the current market price, you can also choose to bet against an outcome, and also dictate the price at which you are willing to accept a bet.

Because betting exchanges allow users to trade with one another they reduces the need for the margin that traditional sportsbooks incorporate into their prices. This provides the opportunity for a more efficient marketplace and users can get much better odds than they would get on a traditional sportsbook.

Backing and Laying

In an exchange, there are two basic type of bets/orders you can place: a) back order and b) lay order.

When you bet on an outcome to occur, you are 'backing', all bets made on sportsbook by users are back orders. When you bet against an outcome to occur, you are 'laying', this is equivalent of a sportsbook offering you a price on a given market for a type of bet. So in an betting exchange, you can act as the sportsbook or bookie. Click here to learn more about placing back orders and lay orders.