In the world of betting, whether as a newbie or a professional, it’s imperative for you to know the great divide that exist, how they work, and how to make profit through them.
We have been made aware of one kind of betting for a long time, and that is: Bookmaker; but that has changed since the inception of “Betting Exchange”, a kind of betting that places the bettors against each other, and brings more advantages to those involved.
Betting Exchange
A betting exchange is a marketplace for customers to bet on the outcome of several distinct events. It offers the same opportunities to bet as a bookmaker does, but with a few differences. You can buy and sell outcomes, also known as “back” or “lay” the outcome (also; you can trade in real-time throughout the event and trade out to cut your losses or lock in profit.
Bookmakers
A bookmaker is an organization or a person that accepts and pays off bets on sporting and other events at agreed-upon odds.
Difference between Betting Exchange and Bookmakers
Better odds
When betting with a bookmaker you can only bet on the odds they offer, which includes their margin, which sometimes is as high as 20%. Whereas in betting exchange, due to its peer-to-peer platform, and its supply and demand rule, one can gain better odds, which translates to you being able to win more in “Betting exchange” for the same bet you will stake in a Bookmaker. This is one of the predominant reviews for 1xbet.
Back and lay
When you bet with a bookmaker, they will restrict you to backing the winner, with no option for laying, but this limitation is removed when you bet with “Exchange Betting”. In betting Exchange you are not only allowed to “back” an outcome, but also allowed to “lay” an outcome; which translates to you being able to act as a Bookmaker by setting odds, or the customer by backing odds.
Commission vs. betting margin
Commission is the fee Smarkets and other betting exchanges charge to facilitate peer-to-peer betting on an exchange; and it can be as low as 2% on your net winnings for any given market. If you encounter a net loss, the betting exchanging platform collects nothing.
Meanwhile, Bookmaker gains money by balancing its books in way that guarantees an inflow of money irrespective of the outcome, through building margins in their odds.
No limitations
Things like, cancelation of bets, shutdown of accounts, restriction of stakes which are occurs in Bookmaker can’t be found in Betting Exchange, because the platform stands only as an intermediary between traders.
Trade the market
Betting exchange is just like stock exchange, because it allows its users to back and lay outcomes of an event just the same way shares are bought and sold on a stock exchange. This way, it’s not necessarily how much sports knowledge you have, but rather, the likely movement that will occur in the market. You can take advantage of 1xbet with lots of positive reviews.