The Betfair Exchange, in simple terms, the betting exchange offers betting without a booky where punters wager against each other at Betfair Exchange. A betting exchange simply provides the technology that pairs punters together in order to place wagers, for a small commission from the net winnings that result. Nothings quite for free. Betting exchanges opened up a huge range of wagering options for punters, simply because people are willing to back bets that risk weary bookmakers simply would not. The technology of betting exchanges allows punters to instantly find people and the odds they are looking for in order to place the bets they want. The major difference in using a betting exchange is the option of lay betting, or backing a selection to lose. If a betting exchange can find a punter willing to put a bet on the selection you wish to put a lay bet on, then your bet can take place.