www.ehorseX.com

A betting exchange is a person to person website acting as a broker between parties for the placement of bets. The most typical application of this type of betting is found in horseracing, although more and more bettors are trading prices on other major sporting events. The concept is similar to that of a stock exchange, where in this case the commodity being traded is a bet or a price, rather than a stock.

There are four major benefits of betting exchanges that apply to horse players. First, the payoffs are 20% better than in a pari-mutuel system. Because tracks take a 20% cut before payouts are distributed, winners at the track are paid 20% less than exchange players. Second, betting exchanges offer fixed odds. 10 to 1 bet, pays 10 to 1, regardless of what the pari-mutuel pool does. No more price drops at post time. Third, horse bettors can shop prices. Odds available on a betting exchange can vary greatly because there are many people, of differing opinions and experience levels offering prices. Someone may see the favorite as a dog and offer a 2 to 1 favorite at 10 to 1…this happens all the time. Fourth, at ehorseX.com you can bet a horse to lose. There is a “for” and “against” column for each horse. So, if you don’t see a horse you like in the field, but you do see a horse you don’t like, bet against that horse and you will be paid if it does not win.

Exchanges make their money by charging a small commission which is calculated as a percentage of net winnings for each customer on each event…generally around 2 to 6%.

Exchanges also offer the opportunity to lay outcomes or bet a horse to lose. This is the position traditionally reserved for bookmakers, but through exchanges, is now available to all.

Every bet requires a backer and a layer, and the betting exchange is not a party to the bets transacted on it. Of course, the distinction is moot: A layer is always simply backing the opposite outcome. Laying the home team is the same as backing the visiting team to win or draw. Laying one horse in a race is just the same as backing all of the other horses to win.

The bottom line is, betting exchanges give the serious horse player unprecedented value and alternatives to tradition horse betting. Better prices, fixed odds and the ability to bet a horse to lose… good advantages to have in a challenging market.