Exchange betting is person-to-person betting that allows punters to set odds for a bet rather than letting the bookmakers post them. In this betting, the punters either back or lay a bet. After that, another punter needs to accept the proposed bet. The parties mostly involved in the bet are the two punters. Therefore, the bookmaker doesn't play any major role in this bet. Apart from that, a betting exchange has the following features: Allows the bettors to place bets "in-play" on a live event. This allows them to calculate the value of the event as it progresses. It guarantees you a profit no matter what the event's outcome. For this, you must trade on the price movement and correctly judge the movements of the event's odds.