On betting exchanges, where bettors offer bets and other bettors accept them, there are some important factors to keep in mind, such as the betting exchange exposure. Understanding what exposure is, what exposure limits are and how to manage them, can help bettors protect themselves from losing money.
What is Betting Exchange Exposure?
Betting exchange exposure is the amount of money a bettor can lose on a bet. If their bet goes wrong, this is the money that will be taken from their account. So, exposure is in a way the bettor’s risk.
For example, a bettor wants to lay a football team not to win. They risk more money than they can win because of the liability in lay betting. If the team wins and the lay bet loses, the exchange will take money from the bettor’s account. That amount is the bettor’s exposure.
What Are Exposure Limits?
The exposure limit is the maximum amount of money the betting exchange allows bettors to risk. This is to protect bettors from losing too much money. The betting exchange checks the bettors’ balance before they place a bet. If they do not have enough money to cover the possible loss, they cannot place the bet.
For example, a betting exchange impose 1000€ exposure limit. A bettor tries to place an 1000€ lay bet on a football team to not win at odds of 2.5, but the liability in case the bet loses is 1500€. This exceeds the exposure limit set by the betting exchange, so the exchange will not allow the bettor to place that lay bet.
In betting exchange where registration goes through a betting broker, exposure limits can be changed on a bettor’s demand. If a bettor sees that they have reached their exposure limit and the platform blocks their bet, they can contact their broker and if agreed, they can make the exposure limit bigger.
Why Is Betting Exchange Exposure Important?
Betting exchange exposure is important because it keeps betting safe. If bettors do not watch for exposure, they could end up lose more money than they want. Many beginners only look at how much they can win but smart bettors also look at how much they could lose.
For example, a bettor wants to place a 10€ stake to lay a horse to not win at odds of 5.0. If the horse loses, the lay bet wins, and the bettor gets 10€. If the horse wins, the lay bet loses, and the bettor has to pay out the 40€ liability to the backer who won the bet.
That 40€ is the bettor’s exposure. If they had only 30€ in their account, the exchange would not allow the bettor to place their bet. So, it is important to always check the exposure and the overall exposure limit before betting.
How to Check and Control the Exposure
In order to manage their betting exchange exposure well, bettors need to always look at the exposure amount before they confirm the bet. The exchange will show it clearly when they place a lay bet. It is the liability amount.
It is very important to set a personal exposure limit. Even if the exchange or the broker lets bettors risk a lot of money, they can always choose to risk only 50€ per bet.
Many bettors use the “what if” question regarding their exposure. They think of what will happen if their bets win or lose. Tools and calculators help with trying out different outcomes to check the exposure before placing bets.
Many bettors spread the risk. They do not risk all their money on one bet. They make smaller bets and they keep their exposure low. They also watch the total exposure. If they have five lay bets open at the same time, their total exposure could be very high.
How to Stay Within the Exposure Limit
The account balance is very important. The exposure limit can be higher when a bettor has more money in their exchange account. The fact that the exposure limits expands as more money are in the account balance does not mean a bettor should risk more.
To stay within their limit, bettors need to place smaller bets, especially if they are new bettors. They need to spread the risk and not risk losing all the money on one bet. Only when they understand the exposure and liability meaning well, they should start placing lay bets.
When a bet seams too risky, bettors should close or cancel it. Sometimes it is not worth taking big risks because they might end up losing a lot of money. In case this happens, it is important to not chase losses by making bigger bets. Many people get into trouble when they try to win back lost money. It is dangerous and the exposure can go up very fast.
In Short
Betting exchange exposure is the money a bettor could lose on a bet. Managing it is not hard. Bettors just need to be careful and always check their possible loss before they place a bet. Keeping the exposure and the exposure limit low, helps bettors stay safe from risking too much.