Exchanges
What's an Exchange?
What's an Exchange?
A betting exchange is an online marketplace where people bet against each other, not against a bookmaker.
Instead of a bookmaker setting the odds and taking all bets, the exchange simply matches customers who want opposite outcomes — one person backing (for) an event, and another laying (against) it.
Examples of popular exchanges include Smarkets, betfair and Matchbook.
The exchange makes money by charging a small commission (often 2–5%) on any winnings from a bet, rather than building profit into the odds like traditional bookies do.
We use Smarkets which has a industry leading commission rate of 2%. We will show you how Smarkets works and the layout of the website.
The 2 types of Bets:
Back Bet (same as with a bookmaker)
You are betting for something to happen.
Example: Backing Liverpool to win a match.
If they win, you win. If they lose or draw, you lose.
Lay Bet (unique to exchanges)
You are betting against something happening.
Example: Laying Liverpool to win means you win if they lose or draw, but you lose if they win.
When you place a lay bet, you effectively become the bookmaker.
Below is a snapshot of Smarkets and all its components
This example we will be taking the football match between Liverpool and Bournemouth
Match & Event Header (Top Section)
Teams/Competitors: At the top, the match is clearly titled — in this case, Liverpool vs Bournemouth.
Date & Time: The kickoff time is shown (“Friday 20:00 BST”).
Market Count: The total number of betting markets available is listed (195 Markets Available).
Navigation Tabs (Below the Header)
These tabs allow you to switch between different betting markets for the event:
All — Shows every market available.
Popular — Displays the most bet-on markets (usually “Full-time result”, “Both teams to score”, etc.).
Bet Builder — Custom bet combinations.
Winner, Teams, Totals, Players, Goals, Handicap, Half, Corners, Cards, Other — These are filters for specific market types.
Main Market Display (Full-time Result)
Market Title: “Full-time result” is the active market being viewed.
Traded Amount: Shows total matched volume (£55,611 in this case) — how much money has been matched on this market between backers and layers.
Price Graph
Displays price movement over time for each selection (Liverpool, Draw, Bournemouth).
Y-axis (left): Shows the amount of money traded at a given time.
Y-axis (right): Shows implied probability (%) for the odds.
Coloured Lines: Each represents a team (red = Liverpool, blue = Draw, green = Bournemouth).
Bars: Represent transaction volumes.
Contract / Selection List
Under “CONTRACT” you see the three possible match outcomes:
Liverpool
Draw
Bournemouth
For each:
Percentage — The implied probability based on the current odds (e.g., Liverpool 75.76%).
Odds Ladder — Multiple price points in green (back odds) and blue (lay odds).
Green Boxes = Back odds (for the outcome to happen).
Blue Boxes = Lay odds (against the outcome happening).
£ Value Below Odds — The amount of money currently available to be matched at that price.
Other Markets Preview
Below the main market you can see other available markets with the amount traded so far:
Correct Score (£4,001 traded)
Both Teams to Score (£376 traded)
These expand when clicked to show back and lay odds in the same format.
Chart Toggle Buttons (Bottom Right)
You can switch between:
Price Graph View
Volume View
These let you see the market visually or just in table form.
Join Smarkets Here
Bet Example (£1)
In the above snapshot of Smarkets we have placed a £1 back bet on Liverpool to win this is your conventional bet. A red dot on the graph describing where in time the bet was placed and on what selection. There is a trade out feature if you plan to take profit in-play or early and sometimes if the bet was an error!
-£1 is stamped underneath Draw and Bournemouth selections outlining a loss if either of these two come through however if Liverpool wins the +£0.31 stamped underneath Liverpool will win and returned to your balance along with the £1 which was the original stake.
The £0.31 was won from the lay side, a bettor who took the opposite side of the bet you placed earlier.
