What is a betting exchange and how do they work?

When we think about traditional Sports Betting, we think about a wager between a professional bookmaker and a sports bettor. This means that when a bet is won, the bettor receives money from the bookmaker, and when a bet is lost, the bettor loses the money to the bookmaker.

There are, however, alternatives to the traditional betting-system, one of them being to go through a Betting Exchange. This gives the bettor the option to function as a bookmaker, and instead of choosing the team you think will win, you can choose the team (or draw) you think will not win. This is what we refer to as backing and laying bets.

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