What is a Betting Exchange?
A betting exchange allows members to bet against each other rather than a bookmaker. Customers can offer odds to, or request odds from, fellow Betfair gamblers.

Where traditional bookmakers risk going head-to-head with gamblers on markets, a betting exchange takes on no risk at all. Instead, a betting exchange provides the platform for its customers to match bets against each other and takes a small commission on winnings.

Betting exchanges are becoming an increasingly integral part of the global gambling landscape, in many cases offering customers much better odds, more transparency, and an experience that feels intuitively fairer.


How does a Betting Exchange work?
The big difference with exchanges compared to bookmakers is they allow lay betting. This means backing a selection to lose rather than win.

Every bet placed on a betting exchange involves two bets really - one bet backing the selection to win, and a second bet backing the same selection to lose.

So if I want to place a £10 bet on a horse to win at 10/1 (100 odds) which returns a profit of £100, I need someone else to risk £100 at 1/10 ( 1.10) to win £10.

This option to lay a bet makes it much easier for customers to guarantee a return if the odds shorten after they've placed their bet.

Where backing a horse with a bookmaker would require you to back every other horse in a race to "green up", on a betting exchange you can back your selection to lose after the price has shortened to lock in a profit.Everything you need to know about betting exchange is here
( https://betting.betfair.com/what-is-a-betting-exchange.html ).