It can be difficult for people new to online betting platforms such as Betfair or Betdaq to grasp the meaning of a betting exchange. Common misconceptions are สล็อตออนไลน์ that a betting exchange can be confused with a bookmaker. This misconception can cause problems in learning how to profitably use the exchanges.
It is easier to understand what a betting exchange looks like if you compare it with a stock exchange than with a bookmaker.
Stock exchanges are regulated markets where registered users can purchase and sell shares of listed companies. The stock exchange prices are not set by them, but by users willing to pay.
Stock exchange users do not know the identities of the people they are buying or selling shares to. They simply look at the current prices and decide whether they wish to accept them.
The betting exchange, in the same way, is a marketplace where users can trade and buy bets on listed markets. The exchange does not set prices or odds, but they are determined by what odds users are willing to accept.
You won’t be able to tell who you’re betting against as a user of a betting exchange. The other person will not know you’re betting against them. You would know that there is someone else out there with a different opinion. The odds and stakes are set in advance and the winner will be paid by the betting exchange once the result has been confirmed.
Different people and organisations use the stock market in different ways. Others only buy shares to keep them and bank any dividends. Some traders trade to make a profit – forecasting the direction of share prices and then buying and selling at different price points.
The betting exchange can be used in a variety of ways by users. Others use the exchange to simply place bets as they would with a bookmaker. They will have better odds if they do it at Betfair than at a high-street bookmaker.
Others try to predict the direction of the odds and make a profit trading. You can buy and sell the same bet at different price points. The traders make profit at the expense of gamblers, much like bookmakers.
A bookmaker may only allow one type of bet, which is a back bet that a certain outcome will occur. However, exchanges let customers place lay bets. Lay bets are the opposite of a back bet and can be placed to bet that an outcome won’t happen. This is equivalent to selling or buying shares.
While it is possible to use a betting platform in the same manner as a bookmaker, there are more ways you can use it. Many of these options can prove to be more profitable and interesting.