Anyone interested in horse racing would have heard of the use of betting exchanges to place bets. However, not everyone is satisfied with this betting option, and some are even worried about it. So read on to clear your doubts and know exactly what betting exchange is and does.
They are so popular these days that I am sure most people will have heard of betting exchange. Betting on horses through betting exchanges has completely changed the way punters place their bets, but why should you consider using one?
It must be said that betting exchanges arrived on the scene in the late 1990s to great skepticism. Hunters wonder what this new breed of bet was all about. A betting exchange is simply a Strategies different type of betting that gives players the opportunity to bet against other players who have a different opinion on a horse race.
Let’s explain the difference in a little more detail
Of course, when you bet on horses with a traditional bookie, you place your bet with the intention of winning with the bookie, either at your local betting shop or with a bookie. If your horse is successful then you make money directly from that bookie which makes you happy and the bookie not so happy.
However, betting exchanges are a bit different. What they do is pit punter against punter, so if you like the look of a horse to win a race, but another punter doesn’t like the look of that horse, then you can effectively go head-to-head. In effect, you are betting that the horse wins the race, while the other player will bet that the horse does not win, also called “placing”. I will explain the difference between the two later in this article.
Whether that horse wins or not, someone is going to win some money. If the horse ends up winning the race then you would make money from the bettor believing the horse won’t win, but if the horse doesn’t win then you would pay the equivalent.
Why losing a horse has become so popular
This is perhaps the one area that clearly distinguishes betting with a traditional bookmaker from betting on horses through a betting exchange.
Traditionally all we’ve been able to do is back a horse to win or place Now that’s all changed. Betting on a horse to win or place works essentially the same way whether you use a conventional bookie or a betting exchange. Simply put, you put your money on your horse and if it wins or is placed then you get some money back for your bet.
However, where betting exchanges have changed the race is by offering you the bettor the chance to pick a horse that you think won’t win, given the race.
What it entitles you to do is look for a horse that you think won’t win its race and place what is known as a ‘lay’ bet. Let’s use an example. You look in the racing section of your newspaper and notice that a horse cannot win its race. You decide that you want to bet on that horse, and so what you are doing is in a sense offering odds to other players who believe that the horse will actually win.
Of course, if your horse fails, it will take the backer’s stake, but if the horse wins the race, then you have to pay.
Why use betting exchanges as opposed to conventional bookmakers?
I will now explain what I believe to be the main benefits of using a betting exchange. I will give you my ‘lucky’ seven reasons to bet on horses using betting exchanges over the course of two articles. The first three reasons are listed below:
Bet exchanges generally offer better returns to hunters
Which I guess is a bit brainless. As a player, getting the best possible price is critical. Even a small increase in price can allow you to significantly improve your long-term profits.
Traditional bookmakers have upped their game a bit, offering slightly better prices than in the past, but due to the way they operate they will never be able to directly compete with betting exchanges. This is because at the end of the day they are a bookmaker and they have to make money through the difference in odds – what they are willing to offer you in relation to what they think the market value is.
Betting through exchanges is very different as there is no middle man anymore. Betting exchanges make their money by taking a small commission for each successful bet placed. Basically if you win they do so they are considered more player friendly.
Betting exchanges will also allow you to claim the odds you want. Can you imagine the reaction you would get if you walked into a betting book and asked for a much more favorable price (to you) on a particular horse? That’s the difference, as betting exchanges are player vs player, so as long as there’s someone out there willing to counter your views, you can get the bet you want.
Winning and losing horses means you win
Of course, we have already touched on the issue of placing a horse to lose, but this is another reason why players are increasingly leaning towards betting on the stock markets. In a sense, they allow you to play the part of the bookie (as they do – they counter your bet), thereby giving you the opportunity to bet that a particular horse will not win its race.
Betting exchanges will not close your account if you are too successful
If you have read any of my previous articles or are familiar with my horse racing advisory service then you will know that I am a believer in managing your money effectively.
A betting exchange allows you to do this perfectly, as you would never dream of closing your account cleanly because you were betting too much. The reason why betting exchanges are more than happy for you to keep winning is, of course, to make a small commission from your winning bets. unlike a conventional bookie where you eat into their profits.
So these are the top three reasons why betting on horses using betting exchanges is important for a punter to succeed. I’ll wrap up the “lucky” seven reasons and cover the remaining four reasons in a separate article.