A betting exchange is a website acting as a broker between parties for the placement of bets. The concept is similar to that of a stock exchange or a futures exchange, where in this case the commodity being traded is a bet, rather than a stock or futures contract. Most betting on a betting exchange is a form of fixed odds gambling.

As with other types of exchanges, betting exchanges thrive on liquidity and customers tend to focus on the exchange where they are confident their bet can be paired up with a matching counterbet.

Exchanges make their money by charging a commission which is calculated as a percentage of net winnings for each customer on each event, or market. Gamblers whose betting activities have traditionally been restricted by bookmakers (normally for winning too much money) have found these sites a boon since they are now able to place bets of a size unrestricted by the exchange - the only restriction is that one or more opposing customers need to be willing match their bets. Moreover, the odds available on a betting exchange are usually better than those offered by bookmakers in spite of the commission charged.

The most basic indicator to look for when you want to trade is the "weight of the money" - whereby we look at imbalances in the market, and try and predict and take advantage of odds movements on this basis. In practical terms, you back when there is more money on the lay side - and lay when there is more money on the back side. This is a rough gauge of price direction, but it is accurate enough in the majority of cases.

This allows you to predict price movements, and develop a genuine system that guarantees returns from the get go. Betting exchange trading also allows you to "hedge your bets" and guarantee a profit no matter what the outcome.

TENNIS TRADING SYSTEM

This system exploits the fluctuations in price that occur during a tennis match. There are three things which will have a big impact on the price of the two players.

1. Break points, or even more of an impact from a confirmed break

2. Winning a set

3. Any sign of a player being injured and liable to retire

The price fluctuations are out of proportion compared to the actual chances of a player eventually winning or losing the game, and this is where the system comes into its own.

TRADING SOFTWARE

The best programs you can use are:

Bet Angel is the ultimate trading and betting platform for Betfair. It will positively shape and change forever the way you use betting exchanges. Already the most popular and widely acknowledged as the leading edge solution it will significantly improve your exchange trading and betting capability, whatever sports market you operate on and whatever your betting or trading style.

 

BetTrader PRO is a Betfair trading software application built for speed on the largest betting exchange in the world.