The concept of a betting exchange for EZ Horse Betting recalls the early days of wagering on horse racing. These platforms essentially allow a bettor to become their own bookie. A player with a betting exchange account can book bets with other players at mutually agreed upon odds. This is how bets were once placed on horse racing in the United States and are still placed in other countries like Australia. Those who know how to use a betting exchange can reap substantial profits.
What is a Betting Exchange?
Betting exchanges like Betfair allow United States bettors in some jurisdictions and bettors overseas the ability to back or lay horses in races at various tracks. The betting exchanges serve as an intermediary between players and facilitates the making of a wager. These platforms are responsible for securing the money involved in the wager and making sure that the winning bettor is paid.
Looking for an Online Racebook? We highly recommend this one!
In traditional horse racing bets are made into a parimutual pool where the odds for each bettor are fixed. The concept of parimutual wagering revolves around backing a horse to win. With a betting exchange, a player can lay bets or play against a horse.
Here’s an example that will clarify how the two types of betting work. In parimutual betting you choose a horse that you think will win a race and make a bet. If that horse wins, you will collect the amount of money dictated by the horse’s odds. If the horse goes off at 3-1, you will receive $3 for every $1 you wagered.
Now, let’s assume that you wish to bet against the favorite in a race. The favorite is currently 1-1 on the tote board but you do not feel that the horse has a legitimate chance to win. On a betting exchange you can offer to lay bets on this horse at the odds you select. In other words, you can offer odds of 2-1 or more to entice bettors to bet on the horse. If the horse wins you will be required to pay the winning bettor out of your own account. If the horse loses, you collect the amount of money that was bet. The betting exchange takes out a small sum for facilitating the bet.
In the simplest terms, a betting exchange makes you a bookmaker. As such, the enterprise carries a certain amount of risk. This risk necessitates certain rules which must be followed in order to participate in exchange betting.
Betting Exchange Deposits
If you want to book bets from other players, you must have enough money in your account to cover those bets. This means that the deposit requirements for some betting exchanges can be higher than they are with other racebooks. Regular racebooks like those recommended by EZ Horse Betting often have a minimum $10 deposit. The minimum deposit for an exchange can often be 10 times as high.
You will only be allowed to book bets from other bettors that you can cover. In other words, if you have $100 in your account you cannot accept any wager that would require you to pay another bettor more money than you have.
The platforms are very good at preventing bettors from overextending themselves, but it is still very important that you maintain a healthy account balance if you want to succeed. More money will also allow you to book more bets and make a better profit.
Picking Losers on a Betting Exchange
One of the most challenging parts of betting horses is picking winners. You can’t simply bet the favorites in a race. They only win one out of every three times. Many bettors who use an exchange argue that it is much easier to pick losers than it is to pick winners. The reason for this is pretty simple.
The average field of horses in a race is about ten. You already know that only one horse can win the race. This means that there will be nine losers. Picking one horse out of ten to win is arguably more difficult than picking one horse out of ten to lose. Sometimes it is possible to eliminate four or five horses from contention with only basic handicapping skills.
The problem is that many people on a betting exchange will be smart enough to spot horses that have little or no chance to win. You can offer 50-1 odds on one of these horses and still not receive any wagers. Doing so is very risky because every once in a while lighting will strike and the longshot will come in, leaving you with a big bet to pay.
Your best strategy on an exchange for picking losers will be to target favorites that are vulnerable to defeat. Remember, only a third of favorites are legitimate contenders. The others have been overbet by the betting public and are vulnerable. When you are able to spot one of these false favorites you can make an offer of 3-1 or more that will be readily accepted by other bettors.
If you aren’t yet ready to make the leap to a betting exchange and offer your own bets, you can still sign up with one of the racebooks recommended by EZ Horse Betting. You’ll get a nice horse betting welcome bonus when you register and also receive free past performances to help you with your handicapping.