In online sports betting, there are two main places to bet, betting exchanges and traditional sportsbooks. Each has its own system, and they work differently. Understanding how applying betting exchange strategies differs from traditional betting can help bettors decide better on their options.
What Are Betting Exchanges?
A betting exchange is an online betting platform where people can bet against other bettors. They can choose between back and lay bets and wait other bettors to match their offers. Betting exchanges are very flexible and give bettors control over the odds and their bets.
Traditional betting, on the other hand, is only accepting bets offered by a bookmaker. The bookmaker sets the odds and takes the opposite side of a bet. This way of betting is less complex but less flexible.
Why Use Betting Exchange Strategies?
Betting exchange strategies are very useful because they give bettors more options to make a profit. In traditional betting, they only win their bet is correct. In a betting exchange, bettors can trade positions and lock in profits early or even make money when others lose by placing lay bets.
Betting exchange strategies help bettors find better odds. Betting exchanges are not involved with the odds. The odds are set by the bettors themselves and there is no margin included by the exchanges. Betting exchanges make their money by charging a commission fee only on winning bets. This makes the odds better in betting exchanges and bettors can find better value for their money.
Key Betting Exchange Strategies
There are some betting exchange strategies that are very common among bettors because they increase their chances of winning.
Back and Lay
This is one of the most popular betting exchange strategies. Bettors first place a back bet, believing something will happen, like a team to win, or a player to score first etc. Then they watch how the odds progress and if they change in their favor, they place a lay bet to cover the opposite outcome.
For example, if a bettor places a back bet on a team to win at odds of 3.00 and the odds drop to 2.0, this means that this team has better chances to win than before. Then, the bettor can place a lay bet on Team A to not win the game at these lower odds. This way, they secure a profit no matter what happens.
Back and Lay strategy is useful in events where the odds move a lot, especially during live events.
Trading
One of the most effective betting exchange strategies is trading on odds movements. Betting exchanges allow bettors to buy and sell bets like stocks with the back and lay system. If a bettor believes the odds will drop, they can choose a bet and back it early. If they think the odds will drift, they can lay that bet and back it later at higher odds.
Trading strategy works well for experienced bettors, because these bettors know how to read the market trends and they understand the sports dynamics well.
Hedging
Hedging is a good way to lower risk and it is easier to apply on a betting exchange. If a bettor places a first bet and it does not look like it will win, the bettor can place another bet in order to minimize the losses. For example, on a horse race if they place a first back bet on a horse to win and this horse does not look like it is going to finish first in the race, the bettor can place a lay bet on that horse. This way, they might lose a little, but they will not lose everything.
Arbitrage
Arbitrage strategy is finding differences in the odds prices between different betting exchanges or sportsbooks. By placing two bets on both sides of the same game, bettors can secure a small profit regardless how the game will result.
For example, if a bookmaker offers odds of 2.1 on a team to win and a betting exchange offer 2.0 to lay that team in the same game, a bettor can apply arbitrage strategy and back the team with the bookmaker while laying it on the exchange. This way they lock in a small profit.
This is one of the most common betting exchange strategies among experienced bettors. Beginner bettors find it a bit complex because it requires very careful calculations and quick thinking.
Laying favorites
In traditional betting, bettors can bet only on the favorites to win. But in a betting exchange, they can also bet against the favorite. For example, in a tennis match, if a bettor thinks the favorite player is overrated in this match, they can place a lay bet on that player not winning the match. If they lose, the bet wins.
This strategy can be very profitable if bettors know when a favorite is likely to underperform.
In Short
Betting exchange strategies are usually popular among bettors because they can control their bets better, they can find better odds and they have more betting options to win. Unlike traditional betting where they are limited to fixed odds and simple bets, exchanges let bettors back, lay, trade and hedge their bets. Using betting exchange strategies, bettors can start small, practice, stay informed and become successful over time.