The gambling industry has evolved so much that you can earn real money without placing a single bet. You can do this by trading sports odds on various betting exchanges. It is quite different from the conventional betting concept that you already know. 

We also recognize that few people are familiar with earning money on betting exchanges without technical gambling. That is why a site like TheTrader was set up. You can find out more about TheTrader.bet. 

Meanwhile, this article is curated to give you insight into the concept of a betting exchange and how to earn from it.

Basic Concept of Betting Exchanges

To earn from the betting exchange, it is only natural that you know how the concept works. A betting exchange is a platform that allows you to carry out sports trading. Some of the popular betting exchange platforms include:

• Betfair
• Smarkets
• Matchbook
• BetDAQ, etc 

There are two ways to trade on a sports exchange platform. You either back or lay an outcome in a sporting event and then sell your position when the price moves.

To back a bet means that you are supporting an event to come to pass. (For instance, to back Arsenal to win the Premier League). On the other hand, to lay a bet means betting against an event happening.  

However, the goal of backing or laying a bet on betting exchange platforms is not to see the event go in your favor. Instead, you trade with the hope of the odds that your backed or layed drifts in your favor. It can be likened to trading stocks.

Background History of Betting Exchanges 

The first betting exchange was Betfair, officially launched in 2000. The launch kick-started a revolution that changed the landscape of the betting industry.

There was the introduction of matched betting, where gamblers have significant control over how to set their odds. However, it wasn’t until years after the launch of Betfair that the sports trading niche started taking its roots in the industry and making impressions on players.

With the inroads in which sports trading was created, people started developing strategies to increase their chances of winning.

Differences Between a Sports Exchange and a Bookmarker 

Since a betting exchange shares some similarities with a bookmarker, distinguishing features set both apart. Some of the differences include the following:

Odds 

A bookmarker has already fixed odds for every available event on the play. However, the players can determine odds on betting exchanges, and as such, they are more competitive than the ones available in bookmarkers. 

The supply and demand of those odds largely drive the odds on betting exchanges.

Commission

This is a fee that is payable by players who back or lay bets on a betting exchange. Some betting exchanges have a fixed commission charge, while others are dependent on the amount of winning you get. It is important to note that betting exchanges only charge you a commission when you win.

On the other hand, bookmarkers have a way of ensuring they make a profit regardless of the outcome of the bets you place.

Trading

Essentially, you cannot trade on a bookmarker site. The only feature that is similar to trading on a bookmarker site is the cashout option, which even in itself doesn’t constitute trading.

In contrast, a large point of a betting exchange is to trade. Here, players can back or lay bets and then sell for a profit when the odds drift in their favor. Also, players have more control over their fortune with trading because it involves critical analysis and implementation of strategies.

How to Earn on Sports Trading

There are a number of ways through which players can turn in profit while on betting exchange platforms. As a beginner, it is important to always be able to liken sports trading to financial trading like stocks, shares, and more. Some of the ways to earn through sports trading include:

Study Strategies

It is always pertinent to get familiar with as many trading strategies as you can. Sites like Thetrader can help you with detailed strategies for bet trading. Nonetheless, below are a few strategies you can try out.

Hedging

This has to do with placing bets on all possible outcomes of the same bet (laying and backing). You do this to hedge or limit your losses. For instance, a punter figures that a particular outcome will occur in a sporting event. 

However, to limit their loss, the punter places another bet that opposes his initial bet. This ensures that the punter narrows out potential losses while locking profit.

Arbitrage

This involves capitalizing on the disparity in odds from different betting exchanges. To do this, you have to identify the slight difference in odds and bet on them to give you an edge.

Conclusion

It is important to note that effort is needed to earn from betting exchanges. As such, you have to do your due diligence to learn and master the art before you can earn.