The advent of the betting exchange created a totally different way in which to gamble on sports events. In addition to the customary backing of a selection to win, the exchange offered the opportunity to back a selection to lose. What was additionally revolutionary about the exchange concept was that it offered the opportunity to bet in-play; this introduced the idea known as trading. Trading on a betting exchange works on the same principle as trading on the stock market. Floor dealers trade on commodities or currencies by predicting whether a stock will go high or low. The same principle applies to the betting exchange and is called back or lay.
Even further, the exchange offered multiple markets on which to bet. The old style punt on a team to win or draw was now superseded by the abilty to bet on correct scores, how many goals, asian handicaps and other exotic markets like sending off or corners gained.
Perhaps the most remarkable advantage of the exchange was its better prices guarantee. Betfair, the largest betting exchange, is not a bookmaker – although it has recently introduced a fixed odds element into its platform – and makes its money through a commisssion levied on winning bets rather than creating its own in-built margins.
This being the case, the Betfair punter is not obliged to take a fixed price on a selection as he would have to do with a regular bookmaker; he can ask for a price from another Betfair customer rather than accept what is on offer. Suddenly, the concept of value takes on a whole new more realsitic meaning. Anyone who has had even a small interest in gambling knows that Rooney to score first + final result 3-1 to Utd at odds of 9/1 is not value.
If you are completely new to the betting exchange concept then we advise you to check out the Betfair educational section here
Then for a more in-depth understanding of how to trade football successfully please take a look around this site where you will find plenty of resources to set you on your way.