Oh what a difference a day makes when it comes to betting exchanges. Up until yesterday, most punters, and indeed bookmakers and commentators, had written the Premier League competition off and gifted the title to Chelsea. I have mentioned several times that nothing is over until the last whistle blows – you only have to take last season’s competition into account to see that.

Halfway through last season, PaddyPower, renown for paying out early, declared Stoke finished and paid out on all relegation bets for Stoke. Of course, history shows that Stoke finished well above the relegation zone – a big loss for PaddyPower. I note there have been no early declarations this season with bookmakers only paying when a result was certain.

Betting exchanges are great places when you are looking to play the ‘bookie’. They also serve another purpose. Many people took the very short odds on Chelsea – as short as 3/10 at one stage to take the title. Now that United are making a surge, that 3/10 looks to be an expensive risk. This is where betting exchanges can help out.

On a betting exchange you can lay any suspect bets.  You achieve this by betting the opposite of your current bet. If you have placed, for example, 100 units on Chelsea to win at 3/10, you are looking at a return of 130 units (30 units profit – note I refer to units since these days people bet in Pounds, Euros and even Aussie dollars; that’s how broad internet betting is). If Chelsea lose, you are looking at a loss of 100 units.

When you lay a bet, you are looking to back the opponent at the best odds possible to cover a loss on your main bet. There are still punters on the betting exchanges that are offering 5/2 or longer, I noticed one at 3/1, for Manchester United to win the season’s title. At 3/1, you can bet 33 units for a total return of 132 units – these bets effectively canceling each other out. No matter who wins, you only lose a unit or two. Of course, if you still think that Chelsea can win the title then perhaps you’re the one on the exchange offering 3/1 for United?

Sometimes, when backing a ’sure thing’, that ’sure thing’ goes sour. By using a betting exchange you can often ‘lay’ your bet to minimize losses. You may not profit, but then no profit is still better than a big loss.