What is Betfair Exchange?
Betfair Exchange is a betting platform where you bet against other people, not against a bookmaker. This peer-to-peer model often results in better odds and unique betting opportunities.
Back vs Lay Betting
Back Betting (Traditional)
Lay Betting (Unique to Exchanges)
How Lay Betting Works
When you lay a bet, you're accepting someone else's back bet.
Example: Laying Man United at 2.50
If someone backs Man United at 2.50 with $100:
Lay Liability = Stake × (Odds - 1)
$100 × (2.50 - 1) = $150
Why Use Betfair Exchange?
1. Better Odds
No bookmaker margin means odds closer to true probability.
Typical comparison:| Market | Bookmaker | Exchange ||--------|-----------|----------|| Team A Win | 2.10 | 2.20 || Draw | 3.40 | 3.60 || Team B Win | 3.20 | 3.40 |
2. Lay Betting
Can't do this anywhere else! Useful for:
3. In-Play Trading
Buy and sell positions during matches like stocks.
Understanding Liquidity
**Liquidity** = money available to be matched
High Liquidity Markets
Your bet gets matched instantly at displayed odds.
Low Liquidity Markets
Might need to accept worse odds or wait for a match.
Betfair Commission
Betfair charges commission on net winnings (typically 2-5%).
Example:
Trading on Betfair
Green Book (Lock in Profit)
1. Back Team A at 2.50 with $100
2. Team A scores, odds drop to 1.80
3. Lay Team A at 1.80 with $139
4. Guaranteed profit regardless of final result!
Red Book (Cut Losses)
Same principle but to minimize losses when a position goes against you.
Scorecast + Betfair
Scorecast tracks Betfair Exchange data including:
Use our Betfair Money Flow tool to see where sharp money is going!
Tips for Exchange Betting
1. **Start with back bets** - Learn the platform before laying
2. **Watch the liquidity** - Don't get stuck in illiquid markets
3. **Understand liability** - Know your maximum loss before laying
4. **Use the cash out** - Betfair's auto cash out is convenient
5. **Track your commission tier** - More volume = lower commission
Conclusion
Betfair Exchange offers serious bettors better odds and more flexibility. Combined with Scorecast's analytics, you can make more informed exchange betting decisions.