What Is the Difference Between Fixed Odds and P2P Exchanges for Sports?

Almost every Gambler will tell you that they have scouted for a betting site at one point in their gambling journey. If you are one of these gamers, we believe that you have come across the idea of betting exchanges.

Currently, Betfair is the world’s most popular betting exchange, and it attracts players from around the world. Nevertheless, you might have also come across betting exchanges such as s-market or Ladbrokes.

Yes. You can stake real-money bets on conventional bookmakers and betting exchanges. So, what is the main difference between bookmakers such as bet 365 and betting exchanges such as Mountbet.com?

Simply put, traditional bookmakers create an edge to guarantee profitability. Therefore, the odds they offer players do not reflect on the real value of the bet. On the other hand, betting exchanges allow players to take on the role of a bookmaker. As a result, you can set your odds-on different betting markets and other players will decide whether to take them or not. Continue Reading to explore the differences between fixed odds Sports betting on traditional gambling operators and sports betting on betting exchanges.

Traditional Fixed Odds Bookmakers: How Do They Work?

Experienced players who regularly frequent platforms such as paddy Power Bet 365 or even Betfair are well-versed with how online bookmakers’ work. But this is not the case with first-time gamers and amateur players.

For this reason, the latter group of players should remember that conventional online bookmakers offer fixed odds-on various betting events and players can compare the odds across different platforms to find out which sites have the best offers.

Yes. Betting operators offer different betting prices for various betting events. You can therefore shop around for the platform that has the best odds on a particular betting market.

For instance, if you want to bet on a home win during an El Classico match in which Barcelona is the away team, it will be best to find the platform that offers lucrative odds on a Real Madrid win. If the home team wins the game, the bookmaker will credit your account with the winnings from your bed.

In contrast, the bookmaker will hold your stake if you lose your bet.  Consequently, it is always you against the bookmaker well you are betting on your favorite Sports Betting markets on traditional online casinos.

The top bookmakers have an idea of all the betting markets that players are interested in staking in. These platforms, therefore, have a comprehensive betting market.

You should note that odds on the betting markets never reflect the real value of the page because the bookmakers usually build something known as a vigorous or profit margin to guarantee that the profits from your best whether you win or lose. Back again to the El Clasico example, if the real value of Real Madrid winning at home is 2.0 online bookmakers will price the event at 1.8.

You are right if you are guessing that betting on betting exchanges does not bring about a “you vs bookmaker” scenario. The reason for this is betting exchanges work slightly differently. Believe it or not, a betting exchange gives you the ability to become or take up the role of a bookmaker. You can, therefore, set the prices of various betting events and other players can accept or reject your prices.  Also, remember that other players can become bookies too. As a result, you can accept or reject the prices they have set on various sporting events.

Betting Exchanges: An Overview of How They Work

So, what are the types of bets that players place on betting exchanges? There is the conventional back bet, and there is the lay bet. We say the back bet is conventional because the bet allows you to wager on the outcome you think will win. On the other hand, a lay bet allows players to wager that they think it will not happen.

So, what does it mean? Let’s switch to the NBA for example. Let’s say, the Golden State Warriors is playing the Brooklyn Nets with the latter being away. Players who opt for the lay bet can wager on the team they think will not win the match. Laying Brooklyn Nets will therefore mean that you are expecting any other outcome to happen except for a Brooklyn Nets win.

Here’s a summary of how betting exchanges work. Backing a bet on a betting exchange is betting on the team you think will win. For this reason, you will receive real money rewards if the team you back wins.

In contrast, laying a bet on a betting exchange is wagering on the team you think will lose. Therefore, if the team you lay wins you lose your bet. As earlier highlighted, you can only win a lay bet if the outcome that you lay does not take place.

Mind-boggling, isn’t it? Anyway, you will get used to this after placing a few bets on your preferred betting exchange.

There are two main differences between conventional online casinos and betting exchanges.  Fast betting exchanges allow players to assume the role of a bookmaker. Therefore, the player can set the prices or odds-on various betting markets.

Similarly, the betting exchange also allows players to let other gamers on the betting exchange assume the role of a bookmaker. When this happens, you will accept or reject the odds offered by other players on the exchange.

Second, betting exchanges do not build a profit margin into their odds.  Of course, these platforms still profit by charging a commission on winning bets.

Friendly betting exchanges have commissions as low as 1%. Don’t expect that all exchanges will follow suit. Each betting exchange is at Liberty to set the commission as high as they want.

Don’t expect to come across an exchange that has a commission that exceeds 5% because such a platform will be unattractive to players. As a result, the highest commission you will pay on a betting exchange is 5%.

Fixed Odds Sports Betting vs Exchange Sports Betting: Which Is Better?

Any Gambler who is thinking about playing on a betting exchange or an online casino might be wondering which of the two offers the best gambling experience. The honest answer to this question will depend on what you want. If you’re interested in maximizing your profits you will find betting exchanges better because their odds do not have profit margins built into them.

Another reason most players believe betting exchanges are better than traditional betting sites is the platform’s peer-to-peer nature. Since betting exchanges allow players to take up the role of a bookmaker, different players will offer different prices, and these prices are driven by the fundamental rules of demand and supply. As a result, you are more likely to get lucrative odds-on betting exchanges and the best part is you will be paying commissions on your winning bets only.

We also must understand how conventional online casinos and betting exchange’s view Sports betting if we want to discover which of the two platforms is better. For starters, traditional online casinos’ main objective is profiting from Sports betting. As a result, the platforms build profit margins into the odds of the betting markets they offer.

On the other hand, betting exchanges are more interested in facilitating peer-to-peer betting that is governed by the rules of demand and supply. Therefore, it is important to note that exchanges provide a fair picture of the probability of a game’s outcome.

As you can see, there are various parks to play on betting exchanges. But this does not mean that these platforms have certain risks. You might not know this but taking the role of a bookmaker can result in you losing more than your stake. You might lay a bet with $50 and end up losing $150 if you lose a lay bet that has an odd of 4.0.

Besides the one major downside above, betting exchanges have various benefits such as winning players enjoying peace of mind that their accounts will not be closed or restricted. Yes. Different online platforms limit the accounts of winning players to protect their bottom line. On the other hand, players who are doing well don’t have to worry about their accounts being limited on betting exchanges.

It is best to get acquainted with how betting exchanges work before you start placing real money bets on the platforms. A lot of newbies lose money on these sites because they do not know what they are doing and how the platforms work. Consequently, visit the FAQ page on your profile betting exchange to find out how they work and how to get started with placing real-money bets on the exchange.

Understanding Market Liquidity in Betting Exchanges.

No market liquidity. No betting exchanges. The market liquidity on betting exchanges indicates the amount of money that you can stake on a particular betting market on the exchange.

Therefore, if the market liquidity on a particular betting market is zero then players cannot place bets on the said betting market. Yes, liquidity in betting exchanges is when talking about back or lay bets.

Think of market liquidity as the amount of cash that is waiting to be matched in a particular betting market. If the home win, away win, or draw betting market on a football match is $1 million, you should interpret the market liquidity to mean that players cannot wager with more than 1 million dollars since any amount over 1 million can’t be matched.

Betting exchanges are driven by the rules of demand and supply. As a result, the market liquidity on these platforms is ever-changing. The most popular market gets the most popular attention from players; this explains why these markets experience the most market liquidity fluctuations. So don’t be surprised to realize that the market liquidity fluctuation on an English Premier League match is higher than on an English Football League Championship match.

Yes, of course. You don’t have to worry about market liquidity when you are playing on top i-gaming platforms such as bet365 for Paddy Power. You can place a bet with $1 million on a particular sports event without worrying about market liquidity.


While betting exchanges might appear complex, these platforms are easy to use once you get the hang of how they work. The most important thing to do when betting on exchanges is to confirm the size of the market as this will determine the size of your bets.

You will also be pleased to learn that leading exchanges such as Mountbet.com have customer-friendly and intuitive platforms that make getting started with exchange betting a walk in the park. Register on the platform today to start placing back and lay bets on your favorite sports events.