What is the Betfair Exchange?
In a nutshell
The Betfair Exchange allows customers to bet against each other rather than a traditional bookmaker. By matching customers, rather than taking the risk itself, the Exchange provides the option to 'lay' - betting on something not to happen.
How does it work?
The Betfair Exchange is the world's largest sports betting exchange. It follows the model of a stock exchange, but replacing share trading with betting odds on events in the world of sport, politics and entertainment.
On any betting market, there are two sides of the bet. On one side, there are those who think an event will happen (backers) and on the other, those who think it won't happen (the layers).
Backers and layers get bets 'matched' if both are happy to bet at the odds available. In February 2021, Betfair introduced a new product called 'MatchMe' that makes it easier for customers to get their bet matched even if there is a small odds movement - click here for full details.
Betting against other customers removes the need for the margin that fixed-odds bookmakers incorporate into their prices and provides the opportunity for a more efficient marketplace, which is why you can often get better odds on the Betfair Exchange.
Instead, customers pay a small commission, but on winnings only.
Setting your own odds on the Betfair Exchange
In a nutshell
Unlike traditional bookmakers, who offer a fixed price, the Betfair Exchange allows customers to ask for a better price if they don't like what is being offered.
How does it work?
An Exchange market will show the prices on offer at any given time in the blue (back) and pink (lay) boxes.
To request a better price - sometimes known as 'submitting an order' - you simply click on the price, but manually alter the odds, using the arrow keys.
Your bet will be placed in the market and, if accepted by another customer, will be matched at those odds.
When you ask for better prices there is no guarantee that another Betfair customer will be willing to accept the price you are offering or asking for, but with odds often changing rapidly, it's a good way of getting more bang for your buck.