New customers only. Place a £10 bet on any Sportsbook market, at odds of at least 1.5 (1/2) — and we’ll give you £10 in free bets. Free bets will be awarded upon bet placement. Only deposits made via cards or Apple Pay are eligible. T&Cs apply. Paddy's Rewards Club: Get a £10 free bet when you place 5x bets of £10+. T&Cs apply.
New customer offer. Place 5 x £10 or more bets to receive £20 in free bets. Repeat up to 5 times to receive maximum £100 bonus. Min odds 1/2 (1.5). Exchange bets excluded. Payment restrictions apply. T&Cs apply.
*New members. £10 min deposit & bet on sportsbook, placed & settled at 1.5 min odds within 14 days of sign-up. Win part of E/W bets. 3 non-withdrawable £10 Free Bet Tokens: accept in 7 days, valid for 7 days from acceptance (ex. E/Ws & Multiples), stakes not returned. Click here for Rules & Exclusions. Bet Responsibly. BeGambleAware.org
*18+. New UK customers only. Min bet £10 to receive £10 Free Bet (settled 35 days from registration). Min odds of 3/5. Free Bet credited at qualifying bet settled within 35 days. Please gamble responsibly, www.begambleaware.org • T&Cs apply
New customers only • Min deposit £10 • A qualifying bet is a ‘real money’ stake of at least £10 • Min odds 1/2 (1.5) • Free Bets credited upon qualifying bet settlement and expires after 7 days • Free Bet stakes not included in returns • Deposit balance is available for withdrawal at any time • Withdrawal restrictions & full T&Cs apply
The Betfair exchange made its debut in June 2000 and when it did, it was revolutionary. But what is the Betfair Exchange, how does it differ from the Smarkets Exchange and its own sportsbook?
Betfair did not add a sportsbook to its armoury until 2012, in fact it had an online casino beforehand (introduced in 2008) but both are very different to the Betfair sports betting exchange and it is best you cast aside all knowledge of those two instruments when trying to understand how betting exchanges work.
New customers only, bet up to £20 on the Exchange and if your first bet loses, we’ll refund you £20 in Cash. Bet must be placed in first 7 days of account opening. T&Cs apply.
Think Old Meets New
In fact, when trying to understand the workings of a betting exchange it is probably best to think along the lines of an old-fashioned on-course bookmaker. That’s quite apt as Betfair exchange horse racing was the only option available to people back in the year 2000.
It is also ironic as, like the London Stock Exchange which went from open-outcry to electronic screen-based trading in October 1986, on-course bookmakers were quickly forced to ‘go electric’ when Betfair formed as, like stock market traders of yesteryear, their entire business was turned upside down.
The Betfair betting exchange simply works like a stock market where stock can be bought and sold. Unlike a conventional stock exchange, the commodity is odds about an outcome of an event (and not commodities such as precious metals and currencies).
Back or Lay
Betting exchanges allow you to play the role of bookmaker. You can log-in and ‘lay’ bets on anything you wish to oppose (not to win). Chelsea against Liverpool in a Betfair exchange football market for example, or Trap 6 in the 4.27pm greyhound race at Monmore Green.
You can do this by clicking on tab alongside your selection in the pink ‘lay’ column. It is very simple and in the example below you can ‘lay’ up to £11 on the favourite (Young American) at odds of 3.60 which is around 5/2. Alternatively, you could back it to win at 3.55 by clicking it in the blue or ‘back’ column.
Betting on an exchange really is that simple but mastering exchange betting is something of an art form.
Arbitrage and Trading
The beauty of Betfair exchange betting is the ability to make money regardless of the outcome of the race or game which you trading. To explain… the best exchange players do not bet (either backing or opposing) a selection to win money. They speculate on market moves and make their money on correctly identifying which way the market will move.
A £/€100 ‘trade’ placed on a horse at odds of 2.50 (6/4) would yield a £/€150 profit if it wins. But there is a total loss if it loses. But a shrewd exchange player will manage to both back and lay this favourite meaning either its victory or defeat will still result in a profit.
His modus operandi would be to back the selection at a pre-contest trading high of 2.64 (yielding a potential £/€164 profit) and also lay the same selection at 2.10 (a possible trading price low) for £/€130 meaning a £/€143 loss.
Here’s how that will work out at settlement time:
Selection wins: Profit on win bet: £/€164 profit Losses on lay bet: £/€143 loss Clear profit: £/€21
Selection loses: Losses on win bet: £/€100 loss Profits on lay bet: £/€130 win Clear profit: £/€30
Betfair Exchange Tips
We believe this trading is the best way to use Betfair exchange albeit from a betting only viewpoint it must be pointed out the exchange does offer the best odds about most sports and selections much of the time.
But opportunities arise the remainder of the time and that is another money maker called ‘arbitrage’ whereby you can back something at a fixed price elsewhere, say 4/1 at Ladbrokes or William Hill, but lay it to lose at 7/2 on the Betfair Exchange. Once again this is a money-making proposition.
Many opportunities often arise but never forget this is a volatile betting platform and with prices moving constantly, particularly ‘in play’ during a horse race, you need to show plenty of discipline and restraint plus have a clear-cut game plan before trying your hand at exchange trading.