If you’ve placed a bet at a sportsbook before, you know the deal: pick your team, accept the odds, and hope for the best 🤞. But what if you could bet against other sports fans instead of the house? That’s exactly what a betting exchange allows you to do.

Unlike traditional sportsbooks, a betting exchange lets users set their own odds and bet against each other, often leading to better profitability and more control. Unlike Betfair or Matchbook, US betting exchanges don’t offer lay betting, meaning you can’t bet against an outcome. Even so, they provide a peer-to-peer system where odds are determined by the market rather than a bookmaker.

Let’s dive into how betting exchanges work and why they’re a must-know option for sports betting in the US.

What is a Betting Exchange?

A betting exchange is a peer-to-peer betting platform where users bet against each other rather than against a sportsbook. Instead of odds being set by a bookmaker, they are determined by market demand.

A great example of a betting exchange that operates in the US is ProphetX. Unlike exchanges in Europe, ProphetX operates only with back bets. There is no option to lay bets (bet against an outcome). However, you can still benefit from better odds and lower commission rates than those found at traditional sportsbooks.

Key Benefits of a Betting Exchange:

• Better odds compared to traditional bookmakers.
• No bookmaker restrictions: winning bettors won’t get limited or banned.
• More control over bets, including setting your own odds.
• Essential for matched betting, allowing better profitability when placing opposing bets.

Betting Exchange Odds and Market Liquidity

Since betting exchanges work differently from sportsbooks, understanding how odds and liquidity function is essential.

How Odds Work on ProphetX

Unlike sportsbooks, where odds are fixed by the bookmaker, ProphetX odds come from other users.

• If many users are backing a team, the odds will shorten (drop).
• If fewer people back a team, the odds will lengthen (increase).
• Because there’s no bookmaker margin, exchange odds are often better than sportsbook odds.

Understanding Market Liquidity

Market liquidity refers to how much money is available for bets on a given outcome. The more money in a market, the easier it is to place bets at good odds.

• High liquidity = Easier to place larger bets without affecting the odds.
• Low liquidity = Harder to get your bet matched at the best price.

Why Liquidity Matters for Matched Betting

Liquidity is especially important for matched betting, as it determines how efficiently you can place bets. High liquidity means:

• Easier matching of bets, reducing risk.
• Better chances of finding close bookmaker-exchange odds.
• More opportunities for profitable betting strategies.

Tip: If you are new to the world of matched betting, make sure you place bets only on markets with higher liquidity than your intended bet. This way you avoid the risk of your bet ending up unmatched or partially matched. Running into such situations would require a bit more experience to determine the best solution, so it’s best for a newcomer to not go in that direction. Just use an odds matching tool and find another suitable event to bet on.

How a Betting Exchange Compares to a Sportsbook

A betting exchange operates differently from a traditional sportsbook, giving you more control over odds and pricing. Here’s a comparison:

Using a betting exchange for placing opposing odds in matched betting is a perfect choice as it offers better odds and a fairer playing field than traditional sportsbooks.

How a Betting Exchange Works for Matched Betting

Placing bets on ProphetX is a great way to maximize your matched betting profits. The strategy here is to use the exchange as an alternative to sportsbooks, taking advantage of its better odds and lower commission.

This means that you can:

• Use the exchange for back bets when odds are better than a sportsbook.
• Take advantage of market movements to maximize profits.
• Trade positions on live events to secure guaranteed returns.

Even though matched betting outside the US traditionally relies on lay betting, you can still make risk-free profits with a US betting exchange. Simply follow the back-back strategy (known as dutching), carefully compare odds and always consider the available liquidity.

Can You Do Matched Betting Without Lay Bets?

Since ProphetX doesn’t allow lay bets, you can’t directly bet against an outcome like you would on Betfair. This means that certain types of bets, such as player prop bets or exact score, can’t be opposed in the same way.

Example: Betting on a Player to Score a Goal

Let’s say you want to bet on Lionel Messi to score a goal.

On a traditional betting exchange like Betfair, you could also place a lay bet (betting against Messi to score). If he doesn’t score, you win the lay bet.

With ProphetX you cannot place an opposing bet in exactly the same way but there are some alternatives. 

How Can You Still Oppose a Prop Bet?

Instead of laying a bet, you need to look for markets that have a clear back bet opposite, such as:

• Over/Under 0.5 Goals for Messi: if you bet Over 0.5 goals (Messi to score), you can oppose it with an Under 0.5 goals bet (Messi not to score) at another sportsbook.
• Yes/No Markets: some sportsbooks have “Will Messi Score? Yes/No” markets. Instead of laying the “Yes” bet, you could back the “No” option if the odds work in your favor.

Remember that these markets are typically available for the most popular games only. If you cannot find one for the game you were planning to bet on, you will not be able to place an opposing bet on the prop market. 

Instead you can focus on matched betting with other bonuses and promotions that have just two possible outcomes available. 

Example: Match Winner (1X2)

• You back Team A to win on the exchange.
• You back Team B or Draw at a sportsbook, ensuring all results are covered.

The same strategy can be applied with Under/Over bets, Goal/No Goal and many others.

Dutching isn’t exactly the same as lay betting, but it can still help you find risk-free opportunities by spreading bets across different markets.

Why Use a Betting Exchange for Matched Betting?

Betting exchanges can be extremely useful for matched betting because they allow you to:

• Find better odds than sportsbooks, increasing profits.
• Avoid restrictions from bookmakers, since exchanges don’t limit winning players.
• Use lower commission rates, which means keeping more of your winnings.
• Take advantage of live trading opportunities to guarantee profit regardless of the outcome.

Even though lay betting isn’t available in the US, using a betting exchange for matched betting still offers plenty of benefits.

Are Betting Exchanges the Future of US Sports Betting?

Betting exchanges are a fresh alternative to traditional sportsbooks, offering better odds, peer-to-peer betting, and a fairer playing field. While the absence of lay betting changes the approach compared to European exchanges, you can still take advantage of improved odds and lower commissions. By understanding how odds, liquidity, and market movements work, you can maximize profits and take control of your betting strategy.

As betting exchanges continue to grow in the US, they could become the future of online sports betting, providing a better, fairer, and more profitable experience for all.

So are you ready to test the best betting exchange strategy and earn a great side income each month? Join us and discover the world of matched betting where up to $1,000/month awaits.