Betting exchange
A betting exchange is a market where bettors back and lay outcomes against each other. It takes a commission on net winnings instead of building in a margin.
Example
Back a draw at 3.40 with 10 on an exchange. It wins 24 profit, and at 2% commission you keep 23.52.
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Related terms
Lay betA lay bet is a bet that an outcome will not happen, made at a betting exchange. You take the other side of a back bet and pay out at the odds if it happens.Bookmaker margin (overround)A bookmaker’s margin, or overround, is how far a market’s implied probabilities add up past 100%. It is the built-in edge the bookmaker holds over the bettor.