Betting exchange

A betting exchange (Betting Exchange ) is a prediction market. The first time this concept has been implemented in the English website Flutter.com from the year 2000. It enabled the person - to-person Bet form for the first time.

In theory a betting exchange like a sports bet between two football fans who argue about the result of an upcoming football game. Would the two bet on their respective Tips, takes on a betting exchange the function of the trustee. For his service rendered to the betting exchanges provider usually takes proportionately small before deductions on profits made. Underdog weather just lose their bets.

In contrast to the classical bookmakers offer odds - tap betting exchanges individuals against each other and give yourself the odds on for which they are willing to accept a bet. It is bet for both the occurrence of a specific event ( = back bet ) and contrast ( = lay bet ).

On those betting exchanges, where there is a lot of running, there is a wide range of betting offer of the meetings of the German football leagues on regional social and political betting to the development of the Dow Jones. Not infrequently higher odds than bookmakers offered, since the latter einrechnen a certain profit margin in the rates offered by them.

The main advantage of the betting exchange is that the odds are much more interesting than the bookmaker, as the share to be retained by the betting exchange about 5% in addition to 10% for the bookies. The disadvantage is that one is dependent on the betting offerings of other weather or incur on their willingness to bet.

The most well-known betting exchange is Betfair (offered by The Sporting Exchange Ltd.. , London), respond to regularly several times more transactions in relation to the London Stock Exchange. How eBay in the competition of Internet Auction Companies owns Betfair betting exchanges among a clear edge in business transactions with customers over competitors.

Betting exchanges can also be used for forecasting purposes. For example, for the outcome of political elections. See article prediction market.