A betting exchange site allows person to person gambling, i.e. clients bet against each other not against Betfair themselves. Wagers can be traded in in much the same way as stocks are traded in on the currency markets.
This shows up a mass of opportunities for the individual which had formerly not been possible when using a conventional bookie. However, many clients do not completely realize the change between Betfair and a bookie, or how they can take benefits of this exclusive technique of betting.

This article briefly describes to newbies what Betfair is, the possibilities that it provides them, and how to actually use it. I will also recommend how new customers can get began with no risk, using the Betfair no cost bet.
Let's look at what a gambling exchange actually is, and how it performs.
How does Betfair work?
Imagine two buddies in a pub who don't agree on which team will win a baseball game and so they choose to have a bet on the outcome. A neutral third party is requested to keep a history of the bet they have created and hold onto the money from the wagers until the result of the match is known.
He will then pay the cash to the victorious one after the game has finished. This advantages both people as all cash is provided up front in advance and thus the pay out to the victorious one is assured. The buddies both acknowledge that whoever wins the bet will pay the neutral third party a little commission payment for this.
The part of this money holding is made by betting exchanges, of which Betfair is the biggest, on a much bigger scale. Instead of gambling just against buddies, Betfair customers could be gambling against any other individual anywhere else on the globe.

As a Betfair individual you won't know who you are gambling against, and the other individual won't know they are gambling against you. All you will both know is that someone out there has a different viewpoint, the possibilities and levels are decided in advance, and Betfair will pay the victorious one once the outcome is verified.
Benefits of Betfair
One of the significant benefits to the individual is that they have the independence to be successful and create as much cash as they like. Typically, bookies will restrict wagers of people who are, in their viewpoint are successful and win too much cash. The gambling exchanges don't care how much you win, actually successful is rewarded. This is because it is not their cash you are winning - all cash comes from other customers. The betting exchange creates its commission payment whoever wins, so there will be no penalty for your achievements.