Betting exchange
Betting Tips

Betting exchange: advantages and disadvantages

Live betting exchange

Once you have bought a certain stake in a sporting event, you can sell it back at any time before the event starts. 

You also have the option of betting a live odds, i.e. you can bet against a team during the match and have the chance to benefit from the fluctuation of the odds. 

You are under no obligation to hold the stake until the end of the event, so you can exit the bet early using the cashout. 

Transparency Of Sports Odds

Betting exchange odds must reflect the fair value of the odds over time. 

The major exchange platforms have software that prevents odds from slipping over long periods of time or being too misaligned. 

This system works very well and allows alerts to be raised in case of match-fixing. 

No Fixed Fees On Bets And Banks

Contrary to traditional financial markets, where every time you buy or sell you pay a fixed commission, in Betting Exchange you only pay in case of a win a fixed percentage that by law cannot exceed 10%. 

Betfair UK, for example, charges a commission of 5%. 

The platform provider (betfair or betflag), in the event of a win, will take the expected percentage of the profits made which includes tax. 

It follows that the winnings made by the bettor will be net. 

In simple terms, you will only pay commission if you win and make a profit; if you lose you will not be charged any amount. 

No Account Closed If You Make A Profit 

By now you must have realised that the classic bookmakers only make money if you lose. 

If you win often, and perhaps even in large sums, this may annoy the bookmaker, who may then decide to close your account. 

In their eyes you are not a profit but rather a loss of funds. 

This cannot happen with the Exchange. 

The reason is very simple: 

  • The bookmaker makes money from your winnings and you are no longer a threat to the platform, but a source of profit. 
  • Therefore, they will never close your account if you make money. 
  • You earn money and the bookmaker earns money: this is called win-win logic. 

Market Liquidity 

With Betting Exchange there is a need for a liquid market.

If with the classic bookmakers you choose what to bet, you place your bet and you are comfortable, in the Exchange you have to take into account the liquidity factor. 

Betting exchange platforms: betfair and betflag 

Betfair

Betfair

It is one of the most famous bookmakers in the world and its website is one of the most comprehensive you can find. 

It was the pioneer of Betting Exchange in Italy and is duly authorised to operate with an AAMS licence. 

Thanks to Betfair’s platform you can also use cashouts.  

With the cashout you have the possibility to cash out your winnings or reduce your losses by closing your bet before the end of the sporting event you bet on. 

This function introduces the concept of Sports Trading in Italy, which allows the buying and selling of bets in real time, just as it happens on the stock exchange when you buy or sell the shares of certain companies. 

If you want to learn more about this topic, I recommend you read our list of the best books on sports betting and the Exchange which you can find here. 

Betflag

Betflag

This is a very reliable bookmaker and is the only legal alternative to Betfair for those who decide to try Exchange Betting. 

Betflag has a very intuitive and easy to use website and applies very good commissions on winnings (about 2%).

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