What is a horse racing exchange?
Horse racing exchange platforms such as Betnfair are platforms where players can place bets on horse races and compete against other players. The odds are not set by a bookmaker but by the players using the platform. On a horse racing exchange, there is a list of upcoming races and the names of the horses competing in each race. The odds are next to the name of each horse and they can be in decimal or fractional format.
Understanding the odds format
In decimal format, the odds are the amount the players can take in return for every unit of currency they stake. A player wagering $1 on a horse with odds of 3.00 will get $3 in return.
In fractional format, the odds are the profit the players will make on top of their stake. A player wagering $1 on a horse with odds of 2/1 will win $2 and will get their original stake back.
How to Interpret Odds on Horse Racing Exchange Platforms
The odds on horse racing exchange platforms are set by the players who are placing the bets.
Low odds next to a horse name mean that the players believe that this horse has good chances of winning the race. Because the horse is more likely to win, the potential winnings are also low. Low odds mean safer bets with less money won.
High odds mean that many bettors in the platform believe that this horse does not have good chances of winning the race. Because the horse is less likely to win, the potential winnings are higher. High odds mean riskier bets with more money won.
Understanding the odds can help bettors make better decisions because it shows them the probabilities of winning and the amount of money they can risk.
Backing and Laying on a Horse Racing Exchange
The bets are two types, back and lay. For every back bet, there needs to be another player in the platform willing to lay it and together to form a matched bet. If many people back a horse, the odds will be low, because there is more money being wagered on it. If few people back a horse, the odds will be high. The odds of back and lay bets reflect the balance of bets between backers and layers.
How to Back a Horse on a Horse Racing Exchange
On a horse racing exchange like Betnfair the back odds are represented in blue boxes.
In a horse race with eight horses a player decides to place a back bet on horse B with odds of 3.0. This means that the player is betting on horse B to win. The stake is $10. If horse B wins the race, the player will get in return $40. The net profit is $30 and the original stake is $10. If horse B does not win the race, the back bet loses.
In order to place a back bet, the players need to:
- Decide the race and horse they want to bet on.
- Click on the odds in the blue box next to the name of the horse.
- Accept the odds in the betslip or offer their own and place their stake.
- Submit their bet and wait for it to be matched by another player willing to lay the back bet.
How to Lay a Horse on a Horse Racing Exchange
On Betnfair exchange the lay odds are represented in yellow boxes.
In a horse race with eight horses a player decides to place a lay bet on horse C with odds of 5.0. This means that the player is betting on horse C to lose. The stake is $10. Lay bets show the amount a player is willing to risk in order to win their stake. In this example, the player is risking $50 in order to win $10. If horse C loses the race, the player will get in return $20. The net profit is $10 and the original stake is $10. If horse C wins the race, the player loses $50.
In order to place a lay bet, the players need to:
- Decide the race and horse they want to bet on.
- Click on the odds in the yellow or red box next to the name of the horse.
- Accept the odds in the betslip or offer their own and place their stake.
- Submit their bet and wait for it to be matched by another player willing to back the lay bet.
In a Nutshell
Players betting on horse racing exchange platforms compete against other players offering odds and forming matched back and lay bets. Understanding the role of odds is very important when placing bets, because it indicates the probability of winning and the potential returns. Odds are not the only factor to consider when placing bets. It is important to take into account other factors as well, such as form, track conditions, jockey performance. Understanding how to interpret odds and doing research on horse races helps for making informed decisions and leads to safe profits.
If you are ready to explore horse races, play with the odds, watch races, wager live and use other features on Betnfair horse racing exchange, get your account now!