Betting exchange is a facility that allows a match to bet, ie. Customers don't bet against each other against Betfair themselves. Bets can be bought and sold in a similar way as shares are bought and sold on the stock market.
This creates a lot of possibilities for the user who had not previously been possible when using a regular bookmaker. However, many users do not completely differentiate between Betfair and the bookmaker, or how they can take advantage of this unique method of making their way.
This series of short articles is designed to explain to beginners what Betfair is, the opportunities it offers them, and how to use it. I will also advise how new users can start quitting, using the Betfair free bet.
In part one, let's look at what betting exchanges really are and how it works.
How does Betfair work?
Imagine two friends in a pub who disagree with which team will play a football game and then decide to bet on results. An unbiased third party is asked to keep a record of the bet they have made and continue their money until the outcome of the game is known.
He will then pay the money to the victory after the game. This benefits both friends as it means that all bets are available in front of them, and payment to the win is guaranteed. The friends both agree that the one who wins the bet will pay their temporary third party a small fee.
The role of this party is met by betting exchanges, of which Betfair is the largest, to a much larger extent. Instead of betting just against friends, Betfair users could be betting against other users elsewhere in the world.
As a Betfair user, you won't know who you are betting on, and the other party doesn't know they're betting against you. All you will know is that someone out there has a different opinion, the odds and the parts are pre-approved and Betfair will pay the winner when the result is confirmed.
Benefits of Betfair
One of the main advantages of the user is that they have the freedom to succeed and make as much money as they want. Traditionally, a bookmaker will limit the stakes or, in extreme cases, close accounts of individuals who, in their opinion, work too much money. The bets do not matter how much you win, in fact winning is encouraged. This is because they are not the money you are working on – all money comes from other users. The switch makes its management work, so there will be no penalty for your success.
Get started with Betfair free bets
New Betfair users can also take advantage of the Betfair free bet. Under the terms of these promotions, Betfair will reimburse the losses that a new user can make on the first market they bet up to a certain value. In fact, this allows the user to test Betfair and learn how to use the exchange rate without financial risk. Of course, if the user works in the first market, they will keep their profits as usual.