Betting exchanges are a pretty recent addition to the world of online gambling. They have been around for not much more than 10 years.
In that time they have grown massively and now in certain sports they dominate online betting.
Although for most people they are still a bit of a mystery and your average online gambler just does not understand them.
So what is a betting exchange and what does it do? A betting exchange is simply a place where people meet online to exchange bets.
There are two basic ways you can bet on the exchanges. The first is you can 'back' a selection. This is much the same as you would do with a traditional online bookmaker. In that if you placed a bet at 10/1 you would win ten times your stake if your selection wins.
The other popular bet on the betting exchange is to 'lay' a selection. This is the exact opposite of the first bet I mentioned.
In that it is you that is offering odds to people who want to 'back' the selection. When you 'lay' a bet you usually have a better chance of winning. Not always, but a lot of the time.
That is the basic ways to bet on the betting exchanges. There are other methods that are bit more complex but once you master the basics I have outlined in this article you will understand them.
If you are interested in online gambling you should check out the exchanges as it can prove very profitable.