What is a betting exchange?

A Betting Exchange can best be described as an odds marketplace. Just like the Stock Exchange trades are made by people who either want to buy something or sell something. Instead of buying or selling stocks these people buy and sell odds. A trade is made when a buyer and a seller can agree about a price. This may sound advanced and time consuming compared to a traditional bookmaker, but it is very easy and most of all it can be very rewarding.

Exchanges make money by charging a commission on net winnings for each customer on each event, or market.  This commission ranges between 2% and 5%. Traditional bookmakers reserve the right to restrict wagers from winning customers, either by lowering the customer's limit or by refusing bets from this customer. Not all bookmakers exercise their right to these policies.

Betting Exchanges do not restrict winning players. The only restriction is that one or more opposing customers need to be willing to match their bets. Moreover, the odds available on a betting exchange are usually better than those offered by bookmakers. The reason for this low commission is that, opposed to traditional bookmakers, exchanges do not have any liability on the events.

In our odds payout section we have analysed the payout for all companies listed on WOSB including the betting exchanges. Do betting exchanges always have a higher pay out? No. In our analysis we have observed the exchange odds and calculated the net odds payout, that is subtracted commission. Some of the betting exchanges just do not have enough liquidity to provide sufficient payout. This analysis did not take into account the scope of the marked depth. It does not make sense if the odds payout is high but the depth is not high enough for you to wager the amount you intend to bet. Lastly promotion offers are not considered. This might change the picture completely if you pursue bonus to achieve the highest possible payout. 

Betting Exchange Tutorial
It takes a while to learn how Betting Exchanges work but it may be time well worthwhile. Here is a list of tutorials that may help you if you are new to Betting Exchanges:

Betdaq:

        Step 1 www.betdaq.com
        Step 2 Click on "Help" in the middle of the top menu.
        Step 3 A window will open. 
        Step 4 Click on "Betdaq Demos" in the left menu.