As we already mentioned, betting exchanges allow players to bet against other players. The first one of the two players who want to place a bet is backing the bet. Simply put, that player is trying to guess an outcome of a specific match and placed a bet on it. The other player now performs an action called laying a bet. In other words, that player is placing money against the outcome in question. For a bet to be considered valid, they both have to agree on the odds and stakes on their own terms. Therefore, an online betting exchange site is only there to connect these two players and enable these two players to put their words into action.

This is a characteristic of betting exchanges only and it can’t be done with traditional bookmakers. Standard online sportsbooks are the ones that dictate the odds to which players have to agree in order to take part in sports betting. Therefore, if you want to choose your own sports betting odds, you should skip all the standard bookmakers and go right to a betting exchange. The next paragraph is about to give a real-time example of the way betting exchanges work. Stay tuned!