Betting exchanges are dynamic, multi-faceted betting portals that enable the customer to both back and lay selections on a whole range of events. What is back and lay betting, what are the advantages and how can they be used in conjunction with one another?

Back betting is essentially placing a bet on a selection to win a contest, be it a race, match, election or TV program etc. It is the form of betting that most punters relate to and has been in existence for centuries. Until ten years ago when betting exchanges started their rise to prominence, back bets would generally be placed through high street and online bookmakers.

Placing a lay bet is the opposite of a back bet. It is betting on an outcome not to happen, i.e. a horse not to win, a tennis player not to win a tournament etc. A price and stake they are willing to bet on a market is offered by a layer, and accepted by the backer. If the selection is not successful, the party who has laid the bet, keeps the stake money. However, if victorious, the layer must provide the backer with a return which is his stake money multiplied by the odds that were agreed. Lay betting was not available to individuals prior to the development of betting exchanges, with the ability to bet on selections to lose solely confined to licenced bookmakers.

Backing and laying on the betting exchanges brings many benefits. From a backing perspective, the odds that are available to bettors are consistently better than those offered by traditional bookmakers. This is because exchanges facilitate peer to peer betting, with individuals not having overheads or required built in profit margins when deriving odds for a particular event. Therefore the returns obtained from backing on betting exchanges are better, as the odds on offer are bigger.

Lay betting has the advantage of allowing customers to place bets on selections they think cannot win. Previously, the only strategy to bet money on the back of a strong opinion against a selection would be to back all other selections in that event. This is an arduous and complicated task when trying to decipher the stakes required.

Back and lay bets can work in conjunction with one another in order to implement trading strategies. Trading refers to backing or laying a selection at certain odds, and then placing the opposite bet when the odds are in your favour, guaranteed a profit in the process.

For instance a bettor may back Andy Murray to win the Australian Open for £10 at 6.0 prior to the tournament commencing. By the quarter final stage, Murray is still in the competition and his odds have now reduced to 3.0. By laying Andy Murray for £20 at half the original odds (3.0), the individual can guarantee a £10 profit whether he wins the tournament or not.

To further clarify how this example works:

"Back" £10 @ 6.0 odds = £50 profit if Murray wins the tournament or lose £10 if he does not

"Lay" £20 @3.0 odds = £20 profit if Murray does not win the tournament or lose £40 if he does

If Murray wins the tournament = +£50 - £40 = +£10 profit

If Murray doesn’t win the tournament = +£20 - £10 = +£10 profit

WBX is a betting exchange that’s dynamic and technologically advanced, offering back and lay facilities. Furthermore, WBX offers live betting; the option to back, lay or trade during the course of an event. This is a big advantage over traditional bookmakers, as it allows customers to lock in profit if the odds go in their favour. It also enables individuals to wait until they can get a more accurate handle on the flow of a match, game or race to make a more informed decision on which selection to bet on, and whether they should back or lay. With low commissions rates and a wide range of markets, there are vast arrays of back and lay opportunities with WBX.