Introducing the concept of a betting exchange
In this article, we would like to introduce you to the concept of a betting exchange, which is the underlying betting system of BX.
You may have heard of a decentralized exchange, on which you can trade your crypto assets on a decentralized exchange application. But did you also hear about a decentralized betting exchange and its advantages?
BX is a betting exchange, which means that the players are betting peer-to-peer against each other. Similar to a stock exchange, users can offer (SELL) bets with certain odds and users can accept (BUY) them, or place their own buy orders with higher odds if they do not agree to the odds of the sellers. Therefore, every possible outcome effectively creates its own market, with buyers who want to bet on that outcome and sellers who want to bet against it.
This may sound complicated at first glance but think of betting in its traditional form. You place a bet at a traditional betting operator and the opposed side of your bet is taken over from the bookmaker. As the bookmakers are taking the risk of losing and paying out your winnings, they will always set the odds clearly in their favor to hedge their risk.
On BX the opposite side of a bet is not taken by a centralized bookmaker but from one or multiple users. It is peer-to-peer. The odds solely depend on the supply and demand of the users which will result in higher and fairer odds than any traditional betting operator can offer.
Buy and Sell orders
With the overall concept being explained now, we will take a closer look at what is meant by a buy and sell order:
The buy order
A buy order represents a bet that the respective outcome will happen.
There are two options to place a buy order: The buyer can either place a quick bet by accepting existing odds offered by sellers or alternatively set his own odds. With individual buy offers, it’s not always ensured that a valid betting constellation arises as there is the need for someone to sell the bet with the same odds. That’s what makes betting on BX.BET so exciting, the price for a bet truly reflects the supply and demand of the market without a middleman setting the odds.
The sell order
A sell order represents a bet that the respective outcome will not happen.
With the sell option, BX.BET offers every user the possibility to take over the role of the bookmaker and offer individual odds to buyers. As the player sells a bet to another one, he will win his stake if the particular outcome does not occur. On the other hand, the seller has to pay out the buyer if the outcome does occur.
So if your bet doesn’t work out as planned, you need to pay out as a traditional bookmaker would.
Because we believe that this concept is much easier to understand by trying it, we’ve implemented a sandbox, in which you can try the exchange functionality and see how it works. You will see how easy and accessible it is and that betting on BX is a truly exciting experience. Please take a look at www.bx.bet/exchange.
