Betting exchanges have revolutionised the way punters bet. This concept enables people to bet person-to-person, as opposed to person-to-bookmaker. Essentially, punters acts as brokers, and can back a horse to win or lay it to lose. The number 1 betting exchange is Betfair, a British company based in London.
When backing a horse to win, it's the same as placing a bet with a conventional bookmaker; when laying a horse to lose, a punter will essentially be placing a bet directly with you, and if the horse loses, you collect that punters stake. So the principal is very similar to the workings of a traditional bookmaker, but the odds can often be greater - up to 20% in fact.
Although horseracing is the most popular medium, markets are offered on various other sports, including football, golf, rugby and tennis. Exchanges brought in-running markets to prominence and remain the only place where you can bet in-running on horses. As in the case of the pre-race betting options, you can back a horse to win or lay it to lose in the in-running market also.
A punter can also request a price about an outcome of an event and hope that someone will opt to match the bet - this is the term referred to as 'matched betting'.
Consistently successful punters often have their stakes restricted by traditional bookmakers in line with their risk management procedures, but no such conditions apply to the exchanges.
Click here to go to Betfair