Betting exchange odds explained
On a betting exchange you bet against other people, not a bookmaker, and pay commission on winnings. How that changes a price, with a real Betfair quote.
On this page
A betting exchange is a market where people bet against each other instead of against a bookmaker. You either back an outcome (it will happen) or lay it (it will not), and the exchange matches you with someone on the other side. The odds on screen are what other people are offering. The exchange earns by taking a commission from net winnings, so the real price you get is a little lower than the number you see.
Why exchange prices often look best
A bookmaker builds a margin into every price. On an exchange there is no built-in margin, only the gap between the best back and best lay offers, so the back price is often the highest available. That is why Betfair, an exchange, shows up as the best price on two of our Sunday cards:
| Fixture | Our side | Our chance | Best price seen | Edge on the card |
|---|---|---|---|---|
| Crystal Palace v Nottingham Forest | Crystal Palace | 36.9% | 2.90, Betfair | +2.4 pts |
| Seattle Seahawks v San Francisco 49ers | 49ers | 52.2% | 2.56, Betfair | +13.2 pts |
What commission does to that price
Betfair charges commission only on net winnings in a market, never on a losing bet. Its own example: with a 5% market base rate, a bet set to win £100 profit pays £95 plus your stake. The rate depends on where you live.
Take the Palace price. At 2.90, a winning £10 back makes £19 profit. Take 5% off and you keep £18.05, which is the same as backing at about 2.81. The implied chance rises from 34.5% to 35.7%, and against our 36.9% the gap shrinks from 2.4 points to about 1.2. The edge on our card is worked from the quoted 2.90; commission is yours to subtract. If you want the general version of this, read what the bookmaker's margin really costs you.
Laying, in one paragraph
Laying is betting against. If you lay Palace at 2.90 for £10, you win £10 (less commission) if Palace do not win, and you pay £19 if they do. Your risk is the backer's profit, which is why laying long prices gets expensive fast.
What this does not tell you
It does not tell you how much money is available at the quoted price: an exchange price can be good for £5 and gone at £50. It does not give your own commission rate, which depends on your country and account, and it is not advice to use any particular exchange.
18+. Bet only what you can afford to lose.
Common questions
What is a betting exchange?
A market where people bet against each other. One side backs an outcome to happen, the other lays it, and the exchange matches them and takes a commission.
How does commission change exchange odds?
Commission comes off your net winnings, so the price you really get is lower than the one on screen. At 5%, a 2.90 back pays like about 2.81.
What does laying a bet mean?
Betting that something will not happen. You take the other side of a backer's bet, so your risk is the backer's potential profit.