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An exchange brings together customers who want to bet on something to happen and others who want to bet on something not happening.
The betting exchange brings together backers and layers and matches bets at a mutually agreeable price. Customers can play the role of the bookmaker by accepting bets.
The operator does not make money through the outcome of an event but by charging commission on transactions. Exchanges lend themselves to in-play betting and their growth led to a massive increase in live betting with traditional bookmakers.
Customers who place a back bet can then place a lay bet when the odds move in their favour to guarantee a profit regardless of the outcome.
Conversely bettors who placed a lay bet can then place a back bet if events and the related odds move in the way the bet projected.
The same process can be used to minimise losses if the odds move against the bettor. Betting exchanges are now an integral part of matched betting described below.
Exchange betting works on the principle of matched betting. It is also known as peer-to-peer betting as the operator does not get involved in the transaction.
The role of the exchange bookmaker is to provide the infrastructure that brings together backers and layers.
Bets can be fully matched, partially matched or not matched at all. Odds are determined by the balance between backers and layers and market forces determine the price on offer.
For any outcome the lay price is bigger than the back price. Betfair is actually an operator, which offers a betting exchange platform.
Bookmakers promote bonus offers, mainly for new customers. The UK betting industry is highly competitive and dominated by the traditional brands and new operators.
Every online bookmaker has a welcome offer which is generally a deposit matched bonus or some kind of sign up deal.
In most cases a customer must deposit funds to take advantage of a bonus code and bonus offer. Bookmakers do offer non-deposit bonuses and these are usually aimed at existing customers and a reward for loyalty.
The cost of a bonus for existing customers is less than for new customers as an affiliate is not required in the process.
The referral has already taken place and no welcome offer bonus codes are involved. Bookmakers enter partnerships with affiliates who promote their brands in return for commission based on net revenue or payment per new customer.
Bonus codes are used to identify the affiliate to be credited when a bookmaker acquires a customer who makes a deposit and places bets.
When opening an account new customers have the option of entering a bonus code which tracks the referrer and commission.
The offer codes are used to claim the deposit bonuses for each product. If you would like to know more about bonus codes, we can surely recommend to read more about the bet bonus code , that brings great advantages to new players.
Matched betting has come in hand in hand with deposit matched bonus offers. It is a process where bettors use the free bet to back one outcome of a sporting event and then place an opposite lay bet with a betting exchange.
The back bet is mostly free so this is a situation in which matched bettors win whatever the outcome of the sporting event. The activity has become more organised in recent years and there are now sites that have matched betting software, calculators, tutorials and forums.
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