Betting Exchanges Commission: Useful Tips for You to Know

It is not a secret that the main task of all the bookmakers and betting exchanges is to earn money. If they fail, new techniques or phenomena appear in the betting industry. Thus, a commission is one of those phenomena that result in the guaranteed benefits for the oddsmakers. In a nutshell, every gambler pays a commission to a betting exchange in order to make the office accept a wager. Thus, the given article is going to describe the most interesting and important things concerning a betting commission.

To begin, the most significant thing concerning the given phenomenon is that a commission is inserted into odds and consequently changes them a bit. That is why it is reasonable to understand this influence in order not to be deceived. The fact here is that the odds that seem to be rather attractive at first sight can appear to be not so beneficial if you remove a commission from them. So, it is necessary here to know the concept of a betting commission.

Betting Commission Calculation Explained

In order to better understand the general principles of the phenomenon under consideration, let us consider a specific example. Let us imagine that there is a football match between Sevilla and Barcelona and the majority of bookmakers evaluate the chances of Barcelona to win as 1.52. At the same time, you discover that a betting exchange has fixed the odds of 1.55 on the same result. If we stake $100 on the outcome, the betting exchange will generate $4 more in comparison with an ordinary bookmaker. So, it seems rather profitable to bet on this market with the betting exchange. However, it is high-time to consider the commission.

Usually, betting exchanges fix the commission rate at 8%. Now, we can calculate how much will be removed with this commission. For this, it is necessary to apply the following formula:

(Profits – Stake) * Commission

So, if we insert the figures from the example above into the given formula, we can calculate our real profits with the deduction of the commission. In this case, it will be as follows:

($155 – $100) * 5% = $55 * 8% = $4.4

So, if we subtract the commission calculated from the benefits, we will see that your genuine profits will be $50.60 instead of expected $55.

Once we have coped with all the necessary calculations, it is possible to define whether gambling with the betting exchange has happened to be more profitable than that with an ordinary bookmaker. For this, we are to calculate true odds paying attention to the commission identified. So, we should use the following formula:

(Profits – Commission) / Stake

For our example, the formula will be as follows:

($155 – $4.4) / $100 = 1.506

So, the answer means that the true odds concerning the given market with the betting exchange is 1.506. If we compare the result with the odds offered by bookmakers, we will see that those of the bookmakers are more profitable. To prove it, we can just compare the benefits of $50.60 made on the exchange with $52 earned with a bookmaker. Yes, some can doubt that the difference is extremely small and it is not reasonable to complicate the betting with the commission calculation. However, all the professional punters will say that even a single dollar is important if you consider betting as a way to earn long-term benefits.

Commission Calculators

Those gamblers who are not in good relationships with mathematics should not panic, because many online bookmakers have developed their own calculators to easily find a commission. To produce the result, the software product requires stake amount, odds, and commission. Once inserted, the given data are quickly produced, and the result is generated. So, it is possible to state that these calculators are not convenient only; they also save a lot of time.

Summary

According to everything stated above, one can conclude that calculating betting commission is significant if we consider long-term betting benefits. If you want to become a professional and successful punter, the given article is extremely beneficial for you.