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Betting Exchange

Profitable Betting Exchange Strategy which turns you an expert in that specific market

What is a Betting Exchange?

When betting it is important that people are able to justify every bet they make. Having a strategy in place allows us to do this.

Exchange sites in our opinion are the best place to employ betting strategies. This is because on the vast majority of bookmaker sites if you employ successful betting strategies it is very common that this will result in a gubbed account. A gubbed account essentially means a limited account.

Yes, believe it or not, bookmakers don’t like successful betters and those who have a strategy in place will be quickly limited by them. In this guide, we will explain why an exchange site is a must for any serious gambler and the many ways we can use it to our advantage.

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Why use a Betting Exchange?

The reasons to use a betting exchange are very clear. On betting exchanges, you are more likely to receive more attractive odds! For those who are not yet familiar with betting exchange sites, the odds on the site will be set by other users of the site. This means that the odds offered on a sporting event can theoretically be anything.

An exchange site can also be used in a very similar fashion to how people use the stock market. Meaning it is possible to bet for and against an outcome in a matter of seconds. Then cash out for a small percentage of profit. If you were to practice this on a bookmaker site, you will be immediately treated with suspicion.

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What is liquidity at a Betting Exchange?

Liquidity refers to how much money is available on the market. So if you see $37 dollars before a selection, this would mean that the max amount you are allowed to stake is that amount. That number will only increase when some other user stakes money at the same odds.

Therefore, if you are looking to place a huge amount of money on a bet with the aim of looking to trade out later then liquidity is a massive factor. If betting on the outcome major sport event such as a premier league clash, then it is unlikely that liquidity will be an issue. However, when betting on a more obscure market like a correct score or winner or over then this will have to be taken into consideration.

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What are the Major Advantages of using a Betting Exchange?

The main advantage of using a betting exchange comes from the fact that the odds can potentially represent huge value! Because of the very nature of people setting their own odds they don’t have to go through the sophisticated process bookmakers do. If someone wants to set odds of 5/1 on a horse, there is nothing stopping them.

Another huge benefit is that the likelihood of your account being limited is very low. If you were to constantly cash out on every bet with a bookmaker for profit. our account will last for about 2 weeks’ top before you receive a politely written email telling you that your ability to place bets has been limited.

The biggest advantage of a sporting exchange site though is that we can employ strategies that have been more commonly used on the stock market. So that, the aim of betting on an exchange is to find odds at their peak and sell at their lowest. This, of course, will not always be achievable but it is something that we should strive for.

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What are the Disadvantages of using a Betting Exchange?

One disadvantage is that the market can move drastically and this could have a big impact on any strategy that you might want to apply. This can easily be avoided by doing some research and practicing with small stakes and trying to gain an understanding of how the market works.

Bets will not always be matched. When placing an order for a match later in the day or a different day, it can be very easy to forget you placed this bet. If the bet isn’t matched, no money will be taken from your account. So If it, however, the bet will run to its natural conclusion.

What strategies can we use in a Betting Exchange?

Here, we are going to look at some exchange betting strategies that can be employed on the betting exchanges. These strategies apply specifically to the exchange markets as there are several factors that make these strategies almost impossible to employ on traditional bookmakers.

Scalping The Market/betting scalping strategy /betting strategies for horse racing:

Scalping the market is a method commonly used on the stock market and this can be commonly used on the exchange market. It is often associated with the horse racing markets but in theory, there is nothing stopping you from using this strategy on other markets. The idea of scalping is to back or lay a bet and place an opposite bet within a few minutes of each other. This is best done in the pre-race markets. And here this strategy is very popular. The danger lies in this though as one bad scalp can totally wipe out all the hard work that proceeded.

Here is an example. Horse A is at 5.2 20 minutes before a race. The odds drift to 5.5 and we place a bet. After we have placed this back bet we immediately place a lay bet with odds of 5.4. If our theory is correct we will be able to cash out for a very small profit.
Bankroll management is critical for scalping. This means that to be successful restricting your losses is just as important as maximizing your winnings. For example, if we were to make a $5 profit from a $100 stake this would mean that if you lost one bet without trading out you would need to win 20 bets in a row to compensate for this loss. Scalping takes a lot of discipline and there is a lot of material available on the web if you wish to really sharpen your expertise.

Cash Out before the event begins

Traditional bookmakers will be quick to close your account if you kept cashing out before the game began. On all sites, it is very common that the favorite for the race or the game will get the vast majority of the backing.

Backing Underdogs

The odds for underdogs on a betting exchange are typically amazing, and the bigger the underdog they are the more value you are likely to receive in comparison to a traditional bookmaker. Odds that are averaging about 33/1 can be found sometimes for over double this amount on an exchange site. Therefore, if you love big outside bets then exchange sites will be the place for you. When betting on a golf tournament it is worth placing multiple bets as it is possible to do this and still make a profit regardless of who wins the tournament.

Take advantage of Fluctuating Odds

Odds on exchange sites will fluctuate more than they do on other markets. This can be a disadvantage if you don't know what you are doing but when you know what spots to look for this can be a huge advantage. Sometimes there can be a big disparity between a back and a lay bet. If so it will be worth discovering why. This could be because someone is trying to get ridiculous value and in this case, we should avoid this bet.

Trading Team News

Team news can have a big impact on the exchange market. One example of this would be a massive injury impacting one team’s chances of winning this match. The earlier we jump on this news the better. There are several sources to use that can help us get ahead of the game. Including social media and paid services. This way we can view predicted teams. When the odds move in our favor we can then decide to either let the bet run to its natural conclusion or cash out for a small profit before the game begins.

What Exchange Sites do we recommend?

There are two betting exchange sites that stand out. These sites are Betfair and Smarkets. There are other sites such as Matchbook and BETDAQ that are also reasonably popular but the liquidity in these markets will not be as high as it would be on the aforementioned sites. Liquidity is crucial as it makes the trading process possible.

Betfair is one of the most trusted bookmakers in the world. The number of markets available to bet on is vast. Therefore, liquidity will not be an issue. his is especially the case for major sporting events.

Smarkets liquidity is not as high as Betfair but it should definitely be added to your list. Occasionally odds will differ slightly for sporting events on both sites. When the odds are more attractive on Smarkets it would make sense to place a bet on Smarkets. The software is very easy to use and trading out bets and placing orders is very easy.

Betfair is superior to all of the competition. We are very impressed by all the statistics they provide and the software really is the next level. They also have a cash-out button which can mean that you don’t necessarily have to place an order if you so wished.

Key Takeaways for Betting Exchange

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Using exchange sites requires a lot of research and study if your desire is to make money on a consistent basis. There are also various strategies that range from minimal risk to huge risk.

Scalping and trading team news will be regarded as minimal risk strategies. This is because if the odds go in the opposite direction of what we are looking for, the likelihood is that the odds will not drive that far. Meaning that we can restrict our losses.

We can only cover a few strategies in this article. This is because there are too many to cover and there will be many variations of the same strategy.


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