BetChoice.org.uk

There are a number of people who are still puzzled by the difference between a traditional bookmaker and a betting exchange.

Well the best way to explain it is as follows:

When you “back” a selection (be it an individual, a team, horse, dog or other), you are betting that it will win. This is just like betting with a conventional bookmaker.

When you “lay” it, you are betting against it winning. For example, if you’re betting in a market on which team is going to win the Premiership and you lay Man Utd, then if they win you pay out. This is what bookmakers traditionally do.

If you are betting through an exchange, it effectively means that your bets are being matched by other exchange customers. In general, as a customer of a betting exchange you will not know who is on the other  side of your  matched bet and it  may be a number of people matching your one bet.

Another theoretical advantage is that you can choose your odds

If you want better odds than are currently available, you can place an order for a better price, but bear in mind that if your price is unrealistic your bet is unlikely to be accepted. Note that the odds available often improve nearer to the ‘off’ (or when the event starts) as interest and betting activity in the markets increases.

The most foremost of betting exchanges is Betfair, they are currently offering aFree £10 bet.