Betting exchanges use a different betting system than traditional bookmakers that has become very popular among bettors worldwide. However, betting exchange terminology can be a bit confusing at first. Going over common betting exchange terms and understanding how it all works can help beginner bettors in exchange betting move faster.
What is a Betting Exchange?
Before learning the betting exchange terminology, it is important to understand what a betting exchange is. A betting exchange is a platform where people can place bets against other bettors who have different opinion about the outcome. Betting exchanges let bettors place “back” and “lay “ bets, which means they can bet on something to happen or not to happen. This peer-to-peer system with opposing sides of the same bet is the basis of all betting exchange.
Common Betting Exchange Terminology
When using a betting exchange, bettors will see specific terms. These are the most common ones.
Back Bet
The first important term in betting exchange terminology is the “back bet”. A back bet is when bettors bet on something to happen. If they believe a team or a player will win a game, they can place a back bet on that team or player to win. It is the same as placing a bet in a traditional sportsbook.
Lay Bet
Another key part of exchange terminology is the “lay bet”. A lay bet can be place only on a betting exchange and it allows bettors to place a bet on something not to happen. If they believe a team or a player will not win a game, they place a lay bet on them to not win. Lay betting is only possible on betting exchanges, making it unique and a very essential part of betting exchange terminology.
Odds
Odds are a part of all types of betting and it is included also on betting exchanges. In betting exchange, “odds” show how much bettors will win if their bet is successful. Odds are expressed in different formats. In betting exchanges, they are usually expressed in decimal format and sometimes in fractional. Understanding odds is a must in betting exchange terminology because they determine a bettor’s potential winnings.
Market
In exchange terminology, a market is a specific outcome of a specific event to bet on. Each game, race or event has its own markets. For example, if there is a football match, there may be different markets, such as match odds where bettors need to predict the winner of the match, over/under where bettors need to predict if the number of total goals scored will exceed or not a certain number etc. Every market has different betting options, making it an important term in betting exchange terminology.
Important Betting Exchange Terminology to Know
There is some additional betting exchange terminology that bettors can encounter that is very important to know.
Liquidity
Is an advanced term in betting exchange terminology. Liquidity shows how much money and how many bets are available in a market for people to place bets. High liquidity means more money and more people betting on that market. Low liquidity means less money and fewer people. Good liquidity is important because it ensures bettors can easily place their bets and they are more likely to find people willing to take the opposite sides of their bet and match it.
Matched and Unmatched Bets
In betting exchange terminology, a ‘matched bet’ is when a bet finds a partner. When a bettor places a back bet, this bet needs to become matched in order to be active. If someone else in the platform places a lay bet against this back bet, then it is matched. If a bet does not find a match, it is called an ‘unmatched bet”. Knowing this betting helps bettors understand if their bet has been accepted or is still waiting.
Commission
Unlike traditional bookmakers, betting exchanges charge a small fee, called ‘commission’. Commission is a percentage of a bettor’s winnings. Betting exchanges use this commission to make money, as they do not profit from the odds like bookmakers do. Commission rates vary, so knowing this terminology can help bettors understand the costs involved in betting exchanges.
In Short
Betting exchanges offer a new way of betting that can be fun and profitable. However, learning betting exchange terminology is important. By taking time to learn key betting terms, bettors can become more confident and make more informed bets. Betting exchanges are unique and different from traditional betting. Understanding betting exchange terminology can allow bettors to be able to enjoy all the benefits that a betting exchange has to offer.