There is a feeling amongst some punters that betting exchanges are risky and that you may never see your winnings. Betting exchanges are no different to any other betting option and as a punter, you get the same protection. In fact, you are often better off with a betting exchange since the betting odds can be appreciably longer.

How Betting Exchanges Work

A betting exchange is just that, an exchange. Rather than punters betting against a bookmaker, they are betting against each other. Take tonight’s game between Fulham and Portsmouth. Online bookmakers are offering odds of 4/5 for Fulham to win.  Portsmouth are at 4/1 with the draw at 7/2.

If you think Portsmouth and Fulham will draw in tonight’s game, you can elect to back the draw at 7/2 with a traditional bookmaker. The alternative is to visit a betting exchange and offer to back the draw at 4/1. If someone thinks your wrong, they will take you up on the bet.

How Can You Be Sure Of Payment

This is where betting exchanges come in. If I offer to back a draw at 4/1, I also have to nominate how much I am willing to bet. I can offer £10 to win £40 (plus my stake back of course). I have to lodge the £10 at the time I make the bet. The other party who accepts my bet must lodge the £40. Once the game is over, the betting exchange will then clear the funds through to the winner’s betting account.

This is all done anonymously so you don’t know the name of the other punter and they don’t know yours. There are many professionals who make a living from betting exchanges. I will go into more detail on how they achieve this in a later post so keep coming back for more useful betting tips.

For tonight’s game, Fulham to win 2-0 is our tip – anyone want to take us on? If so, head on over to one of the betting exchanges.