Prophet Exchange: Betting Exchange & Terminology Explained, What You Need To Know
What You Need To Know About Exchange Betting
You may have heard of exchange betting from overseas, especially in the UK betting market, but chances are, you're not an expert on it .... yet. Don't worry, we've got all the basic information you need to learn more about what exchange betting is and how it can benefit your day-to-day wagering.
Before we get in to explaining the ins and outs of betting exchanges, you're going to want to sign up to the US' premier betting exchange. Prophet Exchange will be going live in New Jersey in the coming weeks and to tempt you in to signing up now, they're offering you a $200 deposit match that will be credited on launch day if you sign up now!
Here's how to sign up:
1. Click this LINK HERE or hit the button below to qualify for the $200 deposit match
2. Sign up for a Prophet Exchange account by completing the really simple registration process
3. As soon as the site goes live in the coming weeks, you'll get your first deposit matched up to $200!
What are you waiting for?
Exchange Betting: Terminology Explained
There's a lot to learn about betting exchanges, but this simple guide should break it down simply for you.
Back and Lay: These two terms are two of the more common things you'll hear in relation to betting on an exchange. To back, it means you're wagering on a particular event to happen, the same as betting on an event on a sportsbook. To lay is the alternative, you're wagering on the event not to happen.
As an example, if you're backing Tiger Woods to win the Masters, you need him to win the tournament, if you're laying him, you need him to lose and any other player to win. The lay bet means you have every other player in the field playing for you.
Matched bet: This is when you place a wager at the odds that you request and the bet is reciprocated in the market by either the opposite backer or layer. Your wager is on!
Trading: Most bettors that use an exchange for betting utilize it for trading. Trading essentially means you are backing and laying to achieve a profit on an event before it finishes.
Using golf as an example again, you may back Tiger Woods on the 14th hole, if he makes a birdie, his odds will shorten, then you can lay him at the shorter odds after the 14th hole when his chance of victory has increased and lock in a profit.
Liability: When placing a lay bet, your liability is the amount you could lose in total.
Green: You may have heard the expression 'going all green' or 'achieving a green book', this is essentially any exchange traders dream and end-goal on a market. This is the concept of creating a position on a market where every outcome guarantees a profit and can be achieved by trading on an event with back and lays.
Liquidity: Backing and laying on an event requires there to be liquidity in that betting market. It refers to the amount of money available in the pool on that market from both the backing and laying sides, the more liquidity, the more competitive value there is in the odds.
Drift: A drift is really simple, it means the odds on a particular selection are getting longer. This means that there are plenty of bettors looking to lay the selection. Perhaps due to rumors around injury, the odds being too short in the first place, or someone taking an extreme opinion.
Commission: You may be wondering at this stage, how the betting exchanges themselves make money, considering they're not backing or laying themselves. That's where commission comes in, the exchange will take a small percentage of profit from each successful wager.
Want to learn even more about exchange betting? Read our comprehensive guide here.
Stay tuned over the coming weeks to read more content around betting exchanges and why they're so popular with bettors. We'll break down exactly how to make it pay using an exchange next week.