Punters always seek creative and thrilling ways to outsmart the odds and increase their chances of winning in online betting Singapore. With the ever-evolving gambling world, these enthusiasts seek innovative approaches to turn the tables in their favour. Among these methods are what they called betting exchanges.
What is a Betting Exchange?
Betting exchange, also known as peer-to-peer betting, is when a punter places their bets against other individuals instead of a bookmaker. It is an excellent alternative to traditional online betting sites, gaining popular momentum since its inception in 2000. While betting exchanges can uncover many gambling opportunities, rookie bettors get intimidated because of their complex and confusing nature.
Unlike online gambling platforms, the betting exchange allows customers to set their odds. This results in potential returns and a highly competitive market, making it a favourable approach to punters. What makes it more beneficial is that no middleman can take a cut of their winnings.
How Does Betting Exchange Work?
As a punter, you must know that a betting exchange is a dynamic form of sports betting. It means you can act as both the punter and the bookmaker, offering and receiving bets from other bettors.
Backing and laying bets
You can execute back and lay bets once you engage in a betting exchange. These are the primary principles that can help you improve profitability.
Back betting is when you bet on a particular result to happen. For instance, if you back a horse to win a race, you bet the horse will win. If your bet succeeds, you will receive a payout based on your odds.
Conversely, lay betting is the opposite of a back bet. When you utilise a lay bet, you are betting against a particular outcome. It means you are acting as the bookmaker, offering odds for other punters to back. Let’s say you are betting that a horse will not finish first in the racecourse. If your bet is successful, you will have the stake of the back bettor.
In exchange betting, you can place back and lay bets on the same event. It gives you many possibilities to strategise and win significant money. For instance, if you think a particular football team will win the tournament, you can back them to win. However, if you also believe they will not win, you can lay them to lose. This way, you can cover all potential outcomes, allowing you to secure your money despite the results.
Trading and Hedging
Trading in a betting exchange is similar to buying and selling in financial markets. It is when you back a selection at a higher price and lay it at a lower cost. This way, you can win money no matter what the results are.
Hedging works together with trading. It is a risk management strategy used to protect your existing bets. Punters who implement this strategy bet back against their original stakes to reduce the amount they can lose and gain enough confidence to make another bet.
For example, if you back a selection and the odds increase, you might not be able to trade guaranteed money, but you can still use hedging out of your risks.
Liquidity is the amount of money available in a particular marker. When there is high liquidity, it means there is significant money available, making it easier to match wagers at desired betting odds. Popular events like the Super Bowl, NFL, and other major horse racing tournaments usually have high liquidity. On the other hand, niche markets typically have lower liquidity, making it challenging to match bets.
Additionally, in betting exchanges, the odds might fluctuate anytime based on how much money has been wagered on each outcome. This system is sometimes called the market.
The more money you bet on an outcome, the shorter the odds. The reason is that the bet has a low chance of winning. On the other hand, the less money bet on a result, the higher the odds become since there is a higher probability of that stake winning.
Liquidity can also become one of the drawbacks of exchange betting. Bookmakers under Singapore betting sites can post odds on every match at a number they believe is profitable. While it allows you to bet on any game you want, you must lay your bets despite low market liquidity. This is one of the reasons you haven’t seen any form of betting exchanges in other countries like the United States.
Benefits of Betting Exchanges
No Betting Margins
Unlike traditional sportsbooks with built-in profit margins, exchanges create money through commissions on winnings. This can lead to higher payouts for gamblers.
Many betting exchanges allow you to experience in-play or live betting. It gives you the excitement and opportunities to make money while creating memorable betting experiences.
Skilled punters can take advantage of price disparities between exchanges, creating arbitrage opportunities to secure profit.
Another perk of betting exchanges is that it enables you to explore different odds. When betting with a bookmaker, you’re stuck with their given odds. But on exchange betting, you can constantly change your odds and look for better based on the market’s price fluctuation.
Betting Exchanges vs Bookmakers: Which is Better?
The primary reason most individuals prefer exchanges over sportsbooks is the ability to lay bets and play as the bookmaker. Additionally, the prices in betting exchanges are usually higher and more controllable than bookies. Most experienced bettors even calculate these prices and develop strategies to guarantee a profit.
However, some exchange betting sites charge a large commission on winning bets. It usually ranges from 2% to 8%, depending on the odds. Moreover, promotions are rare, and there are no cash-outs for users as they need to keep their bet until the end of the season.
If you want to acquire bonuses like free bets, welcoming bonuses, and cash-out options, you need a bookmaker. Bookies provide balanced and boosted odds to keep your betting experience more exciting and remarkable.
Exchange betting provides a fresh perspective to bettors. However, this approach is not suitable for new bettors. Partaking in traditional online betting sites would be the best option if you are a rookie.
Among the reputable online betting platforms in Singapore is JuneBet66. We offer many games and gambling opportunities with promotional offers, such as welcome bonuses, rebates, and incentives. Start your betting journey here!