Betfair Exchange Explained

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Betfair Exchange Explained

A typical, simple free bet offer for new customers from Betfair would be a free £20 bet on the Betfair Exchange. The new customer signs up, places a bet on any. Betfair Exchange is a betting exchange, like a market place where people trade bets with each other. ODDS GUIDE:Betting odds explained – How do odds work​. Betfair. Ben Gunn. Sporting Integrity Expert. Mike O'Kane. Ladbrokes betting operators and SGBs continuing to exchange information in real time as part of The need to educate some Sports Governing Bodies to explain why the issue of.

If you want to find a complete history of your Betfair Points, click on 'Betfair Points Statement' in the 'My Account' section of the site.

You can prevent this by taking a "Betfair holiday" which freezes your points for one week. All new customers automatically receive one Betfair holiday when they join, then an extra week is added each three months up to a maximum of four weeks worth.

It's worth noting that if you trade during a Betfair holiday, you will not see any points added to your account either - your points are frozen.

You may be aware of an additional Betfair tax on winnings known as "Premium Charge". According to Betfair, only around 0. You will be considered as a potential payer of the Betfair Premium Charge if your account matches the following conditions.

If your account meets the above three conditions, there is a chance you will be deemed eligible to pay the Premium Charge and you will be informed by Betfair.

No charges will be taken out of your account before you have been told of the change to your account status.

You're only going to pay Premium Charge if you're winning on Betfair and it's considered by many to be an achievement.

Some users have complained that the Betfair Premium Charge is too complicated to understand and it does seem to be a bit of a minefield that the average trader may struggle to get their heads around, which is partly why its introduction was met with such a negative reaction.

Betfair Premium Charge avoidance is a controversial subject. For some traders, Premium Charge is a sign of greed for a company that is virtually certain to make profits due to its status as the leading betting exchange in the UK.

However, others believe that it deters market makers from using automated bots to siphon profits and that it is only fair for those with extremely profitable accounts to pay more.

You can always close your Betfair account if you object that strongly! The one way that I recommend to avoid paying Premium Charge - or at least to reduce the amount payable - is to use different exchanges whenever you can.

Because of liquidity issues it would be difficult to trade a correct score market in French Ligue 2 at one of the other exchanges, but Match Odds in the Premier League would have no such problem.

Bear in mind that your favourite trading software may not work on other exchanges, so you will need to trade manually.

Some will suggest finding arbs in order to reduce profits at Betfair, but this takes a lot of time and you will soon find that your bookie accounts are closed or gubbed.

It's only a temporary solution and not worth the effort; you're much better off spending the time on your football trading. It has also been suggested that you could use multiple Betfair accounts, however this is strictly against Betfair's terms and conditions.

They have a dedicated team who investigate and suspend suspicious accounts, so you would have to go to great lengths in order to evade detection.

It's not worth the risk, so don't be tempted to try this. Open accounts at other exchanges, use them when you can and pay as little Premium Charge as you have to.

The ability to back and lay bets is a key difference between traditional bookmakers and betting exchanges.

In the simplest terms:. For example, if you think that Manchester United are going to win their next home match you could place a back bet on the home win.

But if you think they are not going to win, you could lay the home win. In that instance, your bet would win as long as Manchester United do not win, ie if the match ends in a draw or an away win.

By placing a lay bet, you are effectively taking on the role of the bookmaker by offering odds that can then be taken by another user.

So if you lay Manchester United, Betfair will find another trader who wishes to back Manchester United at the price you're offering and match the two sides - back and lay.

Let's look take a look at an example of how to lay on Betfair. Here is the Betfair Match Odds market for England's international friendly match against the Netherlands :.

As you can see by the odds offered on Betfair, England are the favourites to win this match. In case you don't know already, the back odds on Betfair are listed in blue, while the lay odds are coloured in a rather fetching shade of pink.

With back odds of 1. However, when you are laying a bet you are betting against that outcome. The lay odds in pink for England against Netherlands in this match are currently set at 1.

You can back and lay at the prices shown in the market, or you can set your own odds. If you decide that 1.

You would not get matched right away as other users would be happily backing at the higher price of 1. The figure shown below the odds is how much money there is in the market at this time.

Football matches between the most popular teams typically have a lot of money in the Match Odds market, especially as kick off time approaches.

Backing and laying for profit is how football traders make their money, so make sure you fully understand what you are doing before you start placing your bets on Betfair.

Getting it the wrong way round can be an expensive mistake! Liquidity is the amount of money available in a betting exchange market and it varies greatly from match to match.

When you want to trade out, you need to have someone else offering the price you need on Betfair otherwise you're stuck.

Match Odds markets tend to have the best liquidity and in bigger leagues, such as the English Premier League, liquidity is never a problem.

In smaller leagues, perhaps English League One, liquidity will never be as good. It may be enough to trade on a Tuesday evening when there are not a huge number of fixtures, but at 3pm on a Saturday there will be lots of bigger leagues sucking up the available money.

You may well be able to get in and out of trades with smaller stakes, but you might need to wait a few minutes to be matched.

There will be times when a goal will go against you while you wait, so bear that additional risk in mind. Smaller markets in smaller leagues are even more troublesome.

If in doubt, stay out. If you're new to exchange trading, it may seem quite daunting at first. However, if you take the time to learn then it is perfectly possible to make consistent, long-term profits and even a full-time living from Betfair.

Punters used to focus on how to make money betting on football, but in recent years there has been a definite switch to football trading. This has provided liquidity to the markets and opened up far more opportunities for ordinary people to find success the that was once out of reach.

Betting with traditional bookmakers has become increasingly difficult. Not only do they attempt to inflate their profit margins overrounds but they are shutting down profitable punters more aggressively than ever.

If you're serious about making money from betting, then betting exchanges really are your only viable option. Of course, you're going to need a portfolio of profitable trading strategies, but your mindset is also going to play a huge role in your success.

You will need to be patient enough to wait for the right opportunities, disciplined enough to stay out of weak trades and level-headed enough to avoid chasing losses.

It takes time and practice to learn how to trade football, but the rewards are well worth the effort. Here is a very simple betting exchange strategy which you can start using today.

It works at any exchange, though Betfair is definitely the best option as it has the most liquidity across the biggest number of markets.

Simply enter your details below and we'll send you the strategy right away for FREE. There are four main UK betting exchanges to open accounts with before starting out on your trading journey.

The new customer bonus offers will come in handy, plus alternatives to Betfair will reduce your exposure to Premium Charge once you become a very profitable trader.

Make sure you are comfortable with how each exchange works before placing bets or opening trades. Here is the full list of betting exchanges :.

Betfair is the biggest and best betting exchange in the world so, therefore, it is hugely popular among sports traders. In early , Betfair - which employed more than a thousand people - underwent a merger with the traditional bookmaker Paddy Power to form a new company named Paddy Power Betfair.

Betfair also offers a sportsbook as well as a sports exchange, so it is easier than ever before to check out the different odds that are on offer from both a bookmaker and from other traders.

Matchbook aims to offer traders using the sports exchange " the ultimate online gaming experience ".

As well as being a top sports exchange, Smarkets also offers back and lay bets on current affairs, politics and popular culture.

Irish businessman Dermot Desmond founded the company, which was sold to Ladbrokes in By matching customers, rather than taking the risk itself, the Exchange provides the option to 'lay' - betting on something not to happen.

The Betfair Exchange is the world's largest sports betting exchange. It follows the model of a stock exchange, but replacing share trading with betting odds on events in the world of sport, politics and entertainment.

On any betting market, there are two sides of the bet. On one side, there are those who think an event will happen backers and on the other, those who think it won't happen the layers.

Backers and layers get bets 'matched' as long as they agree on a price the odds that an event will or won't happen. Betting against other customers removes the need for the margin that fixed-odds bookmakers incorporate into their prices and provides the opportunity for a more efficient marketplace, which is why you can often get better odds on the Betfair Exchange.

For any queries relating to Betting. Betfair, e-mail Copy betfair. For any other Betfair-related queries, contact the helpdesk. OK, I get it.

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According to Betfair, only around 0. You will be considered as a potential payer of the Betfair Premium Charge if your account matches the following conditions.

If your account meets the above three conditions, there is a chance you will be deemed eligible to pay the Premium Charge and you will be informed by Betfair.

No charges will be taken out of your account before you have been told of the change to your account status. You're only going to pay Premium Charge if you're winning on Betfair and it's considered by many to be an achievement.

Some users have complained that the Betfair Premium Charge is too complicated to understand and it does seem to be a bit of a minefield that the average trader may struggle to get their heads around, which is partly why its introduction was met with such a negative reaction.

Betfair Premium Charge avoidance is a controversial subject. For some traders, Premium Charge is a sign of greed for a company that is virtually certain to make profits due to its status as the leading betting exchange in the UK.

However, others believe that it deters market makers from using automated bots to siphon profits and that it is only fair for those with extremely profitable accounts to pay more.

You can always close your Betfair account if you object that strongly! The one way that I recommend to avoid paying Premium Charge - or at least to reduce the amount payable - is to use different exchanges whenever you can.

Because of liquidity issues it would be difficult to trade a correct score market in French Ligue 2 at one of the other exchanges, but Match Odds in the Premier League would have no such problem.

Bear in mind that your favourite trading software may not work on other exchanges, so you will need to trade manually.

Some will suggest finding arbs in order to reduce profits at Betfair, but this takes a lot of time and you will soon find that your bookie accounts are closed or gubbed.

It's only a temporary solution and not worth the effort; you're much better off spending the time on your football trading. It has also been suggested that you could use multiple Betfair accounts, however this is strictly against Betfair's terms and conditions.

They have a dedicated team who investigate and suspend suspicious accounts, so you would have to go to great lengths in order to evade detection.

It's not worth the risk, so don't be tempted to try this. Open accounts at other exchanges, use them when you can and pay as little Premium Charge as you have to.

The ability to back and lay bets is a key difference between traditional bookmakers and betting exchanges. In the simplest terms:. For example, if you think that Manchester United are going to win their next home match you could place a back bet on the home win.

But if you think they are not going to win, you could lay the home win. In that instance, your bet would win as long as Manchester United do not win, ie if the match ends in a draw or an away win.

By placing a lay bet, you are effectively taking on the role of the bookmaker by offering odds that can then be taken by another user.

So if you lay Manchester United, Betfair will find another trader who wishes to back Manchester United at the price you're offering and match the two sides - back and lay.

Let's look take a look at an example of how to lay on Betfair. Here is the Betfair Match Odds market for England's international friendly match against the Netherlands :.

As you can see by the odds offered on Betfair, England are the favourites to win this match. In case you don't know already, the back odds on Betfair are listed in blue, while the lay odds are coloured in a rather fetching shade of pink.

With back odds of 1. However, when you are laying a bet you are betting against that outcome. The lay odds in pink for England against Netherlands in this match are currently set at 1.

You can back and lay at the prices shown in the market, or you can set your own odds. If you decide that 1.

You would not get matched right away as other users would be happily backing at the higher price of 1. The figure shown below the odds is how much money there is in the market at this time.

Football matches between the most popular teams typically have a lot of money in the Match Odds market, especially as kick off time approaches.

Backing and laying for profit is how football traders make their money, so make sure you fully understand what you are doing before you start placing your bets on Betfair.

Getting it the wrong way round can be an expensive mistake! Liquidity is the amount of money available in a betting exchange market and it varies greatly from match to match.

When you want to trade out, you need to have someone else offering the price you need on Betfair otherwise you're stuck. Match Odds markets tend to have the best liquidity and in bigger leagues, such as the English Premier League, liquidity is never a problem.

In smaller leagues, perhaps English League One, liquidity will never be as good. It may be enough to trade on a Tuesday evening when there are not a huge number of fixtures, but at 3pm on a Saturday there will be lots of bigger leagues sucking up the available money.

You may well be able to get in and out of trades with smaller stakes, but you might need to wait a few minutes to be matched.

There will be times when a goal will go against you while you wait, so bear that additional risk in mind. Smaller markets in smaller leagues are even more troublesome.

If in doubt, stay out. If you're new to exchange trading, it may seem quite daunting at first. However, if you take the time to learn then it is perfectly possible to make consistent, long-term profits and even a full-time living from Betfair.

OK, I get it. How does it work? Instead, customers pay a small commission, but on winnings only. Join today Log in. More Betfair Player UK. More Podcasts UK.

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Betfair Exchange Explained

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