A betting exchange places one gambler directly against another, eliminating the bookmaker and the mark-ups they place bet after bet. Remove the other overheads of traditional offline outlets as well (staff costs/maintenance), and you often end up with prices of up to 20% lower than at the bookmaker. This benefit alone makes signing up with an exchange a no-brainer.It doesn't matter how many big wins you have at a betting exchange you'll never find your stakes limited or, worse, your account shut down. You're betting against other gamblers, so the exchange has no vested interest in either your wins or your losses.

The ability to "trade" is one of the most attractive characteristics of a betting exchange. In the right circumstances "backing" a selection as well as "laying" one can result in a position where you profit whatever the outcome. This is not a simple art to perfect, however, and the best approach for anyone new to trading is to play out some situations out on paper first, before pulling out your credit card.