Whether you are an experienced player or a newbie to betting exchange sites, it doesn’t matter. In this review, you will find everything you need to know to better face a back or lay bet . Yeah, but what do these terms mean? We will find out together in the next paragraphs: we will start from the basics, and then deepen aspects related to the variables of the game.
We will find out about liquidity, available markets, commissions and finally we will also take a look at the odds. We will then reveal all the bonuses dedicated to players who love Punta & Banca . Finally, we will dedicate a lot of space to the best strategies to use to win. Let’s get to know the two best betting exchange sites right away.
What is trading betting exchange?
The trading betting exchange is a betting method that differs from traditional bets for one fundamental characteristic. Bettors can buy (“bet”, in English “back”) or sell (“bancare”, in English “lay”) the odds , trading while an event is in progress, to ensure how much they are collecting or reduce any losses. .
All this began in 2000, when Andrè Black, software developer and gambler, and Edward Wray, trader of JP Morgan, founded Betfair. The aim was to remove the bets from the arbitrariness of traditional bookmakers , letting the natural dynamics of the market set the odds of the matches. Supply and demand would have come together to establish a fair share.
The idea was to give the same players the opportunity to make the odds and take on the role of bookmaker . Other players, if they had found the offer attractive, would have bought the odds and matched the bet based on the liquidity of the player acting as the bank.
The revolutionary idea of the two was to structure the bets as if they were a traditional financial exchange.
Guide to betting exchange: the key concepts
We have broadly explained how the game works and we hope to have been able to clear up your betting exchange ideas a bit. But the time has come to go into details. To do this, we first thought of explaining some key concepts of the game better .
These are terms that we have already mentioned and will often recur in the course of the betting exchange review and it is therefore good to clarify them. As for the betting terminology in general, we refer you to the glossary present in another area of the site.
What does back mean?
It was Betfair who first coined the term betting exchange, by which the game is known all over the world today. However, this way of betting is also called among players with the name of back & lay , translated into Italian with Punta & Banca, that is the words that appear on the main buttons of the game.
Back corresponds to what in Italy we know as Punta . This is the column of odds always marked in blue. We are talking here to all intents and purposes of a simple sports bet: for example, by betting € 10 on an odd in the back column, it is possible to win the stake multiplied by the odds marked in blue.
The difference with traditional betting lies in the fact that you are betting against another player instead of against the bookmaker and that there is a limit beyond which it is not possible to bet.
Place a bet on Betfair or other sites
The “counterpart”, in a betting exchange, is the bettor who banks the bet. Here the player assumes the role of the bookmaker: by offering a quote on a result, he bets against the occurrence of that result , which will be bet on by another bettor who has accepted the proposed odds.
The column of the Bank shares is marked in pink. If the bettor who bets is not satisfied with the odds accepted by the bettor, he can offer the bet to another user, deciding again the odds and limit of the bet. Placing a bet on Betfair means placing a double chance bet : betting against the victory of a team, you win if the final result is a draw or a loss.
Believe us, it’s all a lot easier to do than to say. An example will make it much clearer: by laying down € 10 with odds of 1.50 for a Juventus victory, those who play in Bank mode will be able to win € 10 in the event of a tie or defeat of the Old Lady, while in the event of a victory they will lose € 15 ( 10 € x 1.50).
What does liquidity mean?
If you have read it carefully, you may have already guessed what we mean when it comes to liquidity in the betting exchange. This is the sum of matched bets and money waiting to be matched . It constitutes the availability of money on a Punta & Banca market.
Liquidity is a very important factor in betting exchanges, because only on the basis of available liquidity it is possible to match bets on a specific event.
Where is the indication of available liquidity? Under each odd, both back and lay, the amount of money that can be wagered is shown.
Liquidity was much discussed when the exchange market was regulated in Italy in 2013 and Betfair launched its platform, limiting the inflow of money within Italian borders. A less liquid market generates fewer price fluctuations : it is therefore less convenient for users to speculate.
The variables of the betting exchange
Now that we have clarified the key concepts and understood how the betting exchange works in its main fundamentals, we can move on to analyze the main operators of the Italian market.
Betfair firmly occupies the first place in our ranking, thanks to the many years of experience accumulated and the name it has made in all this time among Punta & Banca enthusiasts.
Even after the creation of a .it platform, the liquidity of the English bookmaker has settled at an excellent level .
After regulating their respective internal markets, the Italian (ADM), Spanish (DGOJ) and French (ARJEL) authorities are trying to reach an agreement to have liquidity shared at European level also with Germany, Austria and the United Kingdom.
The road presents some obstacles of a technical and bureaucratic nature.
The second place in the ranking is occupied by an Italian bookmaker with great ambitions.
BetFlag launched its Punta & Banca platform in a market that was not believed to have room. After correcting some settings, Italy’s first betting exchange has experienced a rapid rise and liquidity has nothing to envy to that of Betfair , also thanks to the introduction of market makers who guaranteed large cash injections.
Again with the aim of increasing liquidity, the BetFlag exchange is re-proposed, in a sort of cooperative, by other smaller Italian operators.
Even with the Lucanian bookmaker it is possible to bet from a mobile phone witch Betfair Mobile.
There are also numerous free live streaming events available .
The comparative analysis of the odds
When it comes to odds and payouts in relation to betting exchanges, it is good to clarify. In fact, there are substantial differences compared to the odds of traditional bets we are used to. In Punta & Banca the role of bookmakers is played by other bettors and the percentages vary as if they were shares on the stock market .
In the table that we report in this paragraph we can find the percentages relating to the main sports offered by the two exchanges operating in Italy. The data relate to the “mature” shares (we will see in the next paragraph what this adjective means), measured on the average of the events proposed and already net of the percentage that the operator retains as a commission.
The average odds offered by Betfair are slightly lower than those on the BetFlag exchange. This figure is offset by the greater liquidity that can be found in the platform of the English operator.
Unlike the payouts of traditional bets, the percentages between the various sports are very close , precisely because they are not decided by professional quotes, but are the result of market dynamics.
As far as Betfair is concerned, we found the greatest deviation for those who prefer basketball betting sites , whose average share is slightly lower than that of football and tennis. In the case of BetFlag, the highest payout is for football , while on tennis and basketball the differences are decidedly minimal.
How to interpret the dimensions and graphs
Those who open a betting exchange site for the first time may find themselves displaced by the proposed odds. We took as an example those of a match between Fiorentina-Juventus less than 24 hours before the event.
The odds marked in blue are those of the bettor, while those in pink refer to the banker. The odds are already mature: as you can see, the difference between who bets and who banks is minimal .
On Juventus the odds are perfectly aligned and scale by one decimal to each square, going from 1.89 to 1.90 to 1.91 to 1.92 to 1.93 to 1.94.
At this point, we have two options: we can accept the available odds (for example the one at 1.91) and bet € 10. By clicking on the blue button we will see the liquidity corresponding to that button drop from € 649 to € 639.
That money is there because someone has decided to make a bet opposite to ours , or to lay that result, not believing that Juventus can win (and therefore betting on a 1X). If Juventus were to win, we would earn € 19.10 (10 × 1.91), if they were to lose or draw we would lose 10.
However, it is possible to choose a second way, that is to bet our € 10 on a higher share, the one marked for example by the pink color at 1.92. In this case we would see the corresponding liquidity increase from € 47 to € 57, waiting for someone to match ours by playing Juventus at that share.
Let’s now change the case: we see a screen of odds on a match always taken from the betting exchange, but which looks completely different. It is a Serie C match between Prato and Pisa, which is still a few days away. The odds appear odd to us if we are used to traditional bets . The breakeven is pointed at 1.01 and bankable at 690.
Anyone who has some experience with the exchange knows that such odds are perfectly normal on non-first-tier matches and still far from being played. The actual negotiations have not yet begun and the odds that are present are the work of some shrewd marpione who is setting a trap and trusts in the ingenuity of a beginner.
The gap between Punta and Banca will gradually reduce as we get closer to the event and interest in that game will increase, allowing the dynamics of the market to “adjust” the odds. In fact, we remind you that if no one matches one of our bets before the market closes, it will not be considered valid.
The best bonuses for the betting exchange
When we talk about betting exchange bonuses we have to make some distinctions. The operators that offer the possibility to play at Punta & Banca generally also have a traditional sports betting section, as well as online casinos.
So it may happen that the bonus that is proposed for the sportsbook cannot be spent in the exchange section , which may in fact have bonuses explicitly dedicated to it. This is also the case for the Italian market.
Betfair offers a great welcome bonus , but not usable for sports trading. However, there is a promotional system for your betting exchange similar to a loyalty program. By accumulating points it is possible to increase the discount rate on the commissions paid to the operator.
The more you play, the more the rate increases. For every 10 cents of commission spent, you receive a point and from a thousand points you receive deductions, up to a maximum of 150,000 points (60% discount).
As far as BetFlag is concerned, the speech is very similar. The Italian operator also offers an interesting welcome bonus , which can only be spent on traditional bets.
For users who love Punta & Banca, the Lucanian bookmaker has two interesting surprises. Let’s talk about the Vip System Exchange, which allows players to get discounts on commissions . Every euro of commissions paid guarantees 30 flags.
From 500 flags accumulated, commissions begin to decline. When you reach 150,000 flags, you get 95% discount on the amount to be paid to the bookmaker. But it doesn’t stop there. BetFlag also offers a welcome bonus exchange, equal to a 60% discount on commissions .
Thanks to these two very interesting promotions we have decided to indicate the bonus offer on the BetFlag exchange as the best.
We have already been able to observe in the summary table the markets available on the main sport exchanges of the trading betting exchanges active in Italy. Compared to traditional bets, the Punta & Banca markets are fewer in number .
On major football matches Betfair offers around 30 markets, while rival BetFlag offers around 20.
The Lucanian bookmaker, which has distinguished itself since its inception for a very ambitious proposal, had started its adventure in the betting exchange by offering a very wide spectrum of markets, even on minor events.
Over time he corrected his proposal, thus solving a youth defect and thus guaranteeing greater liquidity, albeit on a smaller number of markets .
The commissions of the operators
Why do the best betting exchange sites keep commission on Punta & Banca bets? This is a pledge for the intermediary role they play, since, as we have explained, the role of the banker is carried out directly by the users.
The ADM regulation (formerly AAMS) of 2013 provides that operators can apply a maximum percentage of 10%, but no one in Italy goes that far. Indeed, it must be emphasized that the commissions are very low .
The Belpaese enjoys conditions on the exchange that are among the best in the world . Betfair, for example, applies a basic percentage equal to 5% for all markets, from which we then start to scale the discounts of the loyalty program that we analyzed in the previous paragraph.
Also as regards BetFlag the commission starts from 5 basis points, but, if the conditions of the welcome bonus are respected, it is possible to keep it at 2% and start climbing the discount rate of the VIP program.
The differences compared to matched betting
Matched betting is a strategy applied to traditional betting based on mathematical techniques. It requires the opening of an account with two or more operators and requires the exploitation of the relative welcome offers. The welcome bonus is used to bet on one result, and then cover the bet by placing the other two on the betting exchange . The result is a guaranteed victory, but with lower profit margins.
This system is based on the welcome bonuses of various operators, which however are limited . Once you have finished the possibilities available, the game ends, because the revenues from periodic promotions are much lower. For this reason we prefer to dabble in the betting exchange. The opportunities it offers are endless and, by acquiring the necessary experience, even the profit margins become much more interesting.
The differences with financial exchanges
Punta & Banca is a mechanism similar to traditional financial exchanges, but with a fundamental difference. Back & Lay is a betting exchange between users with a gaming account at a bookmaker . Financial exchanges, on the other hand, work on the stock exchange, and exchange shares, government bonds or derivatives between clients of different agencies.
Financial exchanges essentially offer themselves as intermediaries to combine the sale, increasing the liquidity present on the platform. It can be imagined that in the future the bookmakers offering trading betting exchanges will have a shared platform that will collect bets from different operators , thus creating a convergence.
Punta & Banca follows the same rules as the financial exchange. What changes is the object of trading: in one case the bets, in the other the financial stocks. Just like with brokers, however, the liquidity available for transactions is what distinguishes a tier one from a lower trader .
Betting exchange strategies
When we talk about betting exchange strategies we must keep in mind that these may more closely resemble stock exchange trading methods, rather than the traditional bets we are used to.
There are numerous strategies that can be applied to Punta & Banca, but it is not possible to choose an absolute best one, with which to guarantee constant winnings. In fact , you must always adapt a method to your style of play and your budget .
It is also essential to always observe the statistics of the teams you intend to play on. To be able to achieve all this it is obviously necessary to accumulate a certain experience. Also keep in mind that the betting exchange is a type of bet in which you play against other users: the psychological aspect, as in poker, is fundamental .
You must always be ready to seize the moment, but also know when it is time to use caution and cover the bets.
Some useful tools for the betting exchange
In this betting exchange guide, a part concerning the useful tools to help the player to maximize profits could not be missing. On the internet you can easily find excel tables, the same ones used by stock exchange traders for their operations, thanks to which to accurately calculate the suitable stakes for each share to obtain profit margin.
For those who want an even more professional approach, there are software entirely dedicated to the management of sports trading . It can be of great help to carefully study the graphs of the Punta & Banca odds trend, to understand more about the mass psychology of the players and find out the exact moments in which to bet and lay.
The pros and cons of sports trading
After going into the details and having studied many particular aspects of Punta & Banca, a question arises spontaneously: why should we choose to play with the betting exchange? Many enthusiasts assure us that once you’ve tried it, there’s no turning back .
In fact, even if at first glance it seems much more complex than the bets we are used to, the exchange can give us very special thrills, the same ones experienced by traders on the stock exchange.
By applying the techniques and strategies that we have seen in the previous paragraphs, it is in fact possible to be able to obtain constant profits over time and to calculate and limit losses, monitoring everything better than in traditional bets.
Thanks to the fact that you bet not against a bookmaker, but against other players, it is also possible to win by exploiting the mistakes of others, just like in a card game , taking advantage of statistical data that go beyond sports and also affect the trend of quotas.
However, there are also some less favorable sides of the betting exchange. An obvious limit is represented by liquidity , in the absence of which, on certain events or markets, it is impossible to obtain large margins, especially for those who work with scalping techniques. It can also happen that certain plays are not matched by other players – a frustrating eventuality.
Compared to traditional games, it is not possible to play multiples and use the large welcome bonus of bets. Finally, there are purists who turn their noses a little on certain dynamics of the betting exchange such as dutching: the poetry and charm of traditional bets, they argue, is partly lost.
The history of Punta & Banca in Italy
Even if the history of the betting exchange in Italy is relatively recent, at least at the regulatory level, in reality sports trading has its roots already at the beginning of the new millennium . It was recently the year 2000 when, in the United Kingdom, the first two sites dedicated to the betting exchange flutter.com and Betfair came to light almost simultaneously.
The latter was born from the intuition of Edward Wray and Andrew Black, two friends who worked in two completely different fields, finance and sports betting. Putting their skills together, they created what is now one of the most popular games in the world. The following year the two operators merged under the Betfair banner to develop the project jointly.
In the following years, sports trading was increasingly successful in the United Kingdom and other platforms dedicated to it were born, such as Smarkets. We are approaching the present. Enthusiasts are also growing in the rest of the world and so also Italy, like other European countries, develops legislation that governs the exchange , thanks to the law decree n.47 of 18 March 2013.
Betfair can thus launch its Punta & Banca entirely dedicated to the Italian market, one of the markets on which the British operator focuses the most. Not long ago, we are in 2014, and Betfair finds its first challenger in the Peninsula : the ambitious Lucanian bookmaker BetFlag goes online with an all-Italian betting exchange.
The best betting exchange site in Italy
We have come to the end of this detailed guide to trading betting exchange. We have tried to provide you with all the useful information to be able to bring you closer to this very interesting way of betting. We have clarified the technical terms of Punta & Banca and described various strategies that can be used in this area.
We then moved on to an in-depth examination of the best betting exchange sites . From the analysis of the exchange offer of the two main operators, we were able to reveal who offers the best odds, bonuses and liquidity.
Together with the analysis of the markets and the schedule, we have obtained an overall picture that has seen Betfair prevail over BetFlag , also thanks to the greater experience in the sector and the partnership with entities committed to protecting users from compulsive gambling phenomena such as Gambling Therapy .
The Betpoint proposal has yet to be perfected, while the Lucanian bookmaker already offers a highly competitive product. With the increase of enthusiasts and perhaps a common liquidity with other countries, other competitors will also appear in the local market.