The Betting exchange is a system based on the exchange of sports bets between users. A person proposes a sports bet in the same way as a bookmaker (by setting a odds and a maximum amount that another bettor can bet on his bet) and another person takes the bet.
Generally, the odds offered on Betting Exchange are slightly higher than on a single bet. The disadvantage is that it is not possible to include it in a multiple bet. Visit topbettingwebsites.co.uk to find what betting exchanges for uk players signifies. In concrete terms, here is a simple example of how to put yourself in the shoes of bettors and betting providers on the Bordeaux - Metz match.
For the bettor
A bettor wants to bet 50€ on Bordeaux. He therefore examines the odds offered by the bookmakers and finds that they offer him his winning team @1.9. Seeing this, he looks at the betting exchange and realizes that a supplier offers 50€ @2.2 for the same final result.
- In case of Bordeaux's victory --> The bettor wins 50*2.2 = 110€ instead of 50*1.9 = 95€ if he had taken his bet from the bookmaker.
- In case of non-winning Bordeaux --> The bettor loses his 50€.
- Taking a bet on a betting exchange does not cost more money than taking it from the bookmaker.
For the betting supplier
The supplier is convinced that Metz will win. He therefore offers a win or zero bet from Bordeaux with a slightly higher odds than the bookmaker offers for the same result (if not no interest for a bettor to buy the bet from him). He offers 100€ on 1X @ 1.2 and someone buys his bet from him since he thinks that there will be a final victory or draw for Bordeaux.
- In case of a victory for Metz --> The supplier wins 100€ because the one who bought his bet from him lost everything (he had bet victory or draw for Bordeaux)
- In case of non victory of Metz --> The supplier loses [(100€*1.2]-100] = 20€ (the liability)
The commitment on a betting exchange (what can be lost as money and called Liability) is equivalent to the bet * the odds - the bet. In fact, our supplier has bet 20€ @5 on Metz's victory whereas this same result was rated @4 by the "classic" system of Bwin or BetClic bookmakers.