Betting Exchange

A betting exchange is a platform where players bet against each other rather than against a bookmaker. One user backs a selection, another lays it — accepting that bet — and the exchange matches the two sides and holds the stakes. The operator builds no margin into the price; it charges commission on net winnings instead. Because prices come from supply and demand rather than from an odds compiler, exchange markets often show tighter effective margins than fixed-odds books, and liquidity decides how much can actually be matched. A bet only stands once matched; any unmatched portion is returned. Worked example: you want €50 on a team at 3.00. If only €30 is available at that price, €30 is matched and €20 stays unmatched until someone lays it or you cancel. Risks are real: laying creates a liability larger than your stake, and thin markets can move sharply. Also called peer-to-peer betting.