How a Betting Exchange Works: From Offer to Settlement

A betting exchange connects two different customers: one backs a selection, while the other lays the same selection. A binding bet exists only when their opposing offers are matched. An unmatched order is still an offer, not a concluded bet.

For the specific matching, commission and settlement rules, we use one exchange, BETDAQ. The versions and relevant sections are listed in the sources at the end. Availability and rates depend on the customer's country and account category; the service is unavailable to US residents.

The example is hypothetical: no bets were placed. It uses a football 1X2 market and the selection “Team A to win in regular time.” Under the cited Exchange Rules, regular time includes stoppage time but excludes extra time unless otherwise stated. The example does not cover void bets or special settlement rules.

Who makes the bet, and when does it become binding?

The two customers enter a binding bet when their opposing offers are matched. The exchange acts as an intermediary, holding funds and settling the market.

Both customers in this example choose the same selection: “A to win.”

• The back customer places a back bet and wins if A wins.
• The lay customer places a lay bet and wins if A does not win: either a draw or a defeat for A in this 1X2 market.

Laying A to win is therefore not the same as backing A's opponent. A draw also wins the lay bet.

Under the selected exchange rules (§§20–22), the amount matched determines how much of an offer becomes binding:

• Unmatched order: no bet has been concluded.
• Partially matched order: only the matched amount is binding.
• Fully matched order: the entire offered amount is binding.

Matching is not settlement. Matching creates the bet; settlement determines each customer's result once the market outcome is known. It is also distinct from matched betting, a separate bonus-hedging strategy.

Original illustrative diagram, not the BETDAQ interface: a fully matched £10 back stake at 3.00 with £20 lay liability, alongside a separate order with £4 matched and £6 unmatched

Original illustrative diagram based on BETDAQ's rules, not a real BETDAQ interface. The fully matched bet and the separate partially matched order are shown independently.

How much does each customer risk at £10 and odds of 3.00?

The back customer risks £10, while the lay customer risks £20. The latter amount is the lay liability.

For the fully matched offer:

Lay liability = matched back stake × (decimal odds − 1)

£10 × (3.00 − 1) = £20

Here, £10 is the matched back stake—not the lay customer's amount at risk. The lay customer must cover £20 if A wins.

If A wins, the back customer's total return before commission is £30: the original £10 stake plus £20 profit. A £30 return is not £30 profit. The guide to how betting odds work explains this distinction in more detail.

What does each customer make or lose after commission?

At the applicable 2% commission rate, the winning customer's net profit is £19.60 if the back bet wins, or £9.80 if the lay bet wins. The losing customer loses £20 or £10 respectively.

The calculation assumes:

• Two different customers.
• One fully matched bet with a £10 back stake at decimal odds of 3.00.
• No other positions for either customer in this market.
• An ordinary UK consumer account for which the 2% rate applies.
• No void bets or special settlement conditions.

Under the selected rules, commission is charged on each customer's positive net market winnings at market settlement. The 2% rate used here is not universal: rates depend on region and account category.

Profit and loss for the fully matched £10 example

All result columns below show profit or loss, not a total return including the original stake.

If A wins, commission is £20 × 2% = £0.40. If A does not win, commission is £10 × 2% = £0.20. No commission is charged on the losing customer's negative market result in this model.

These calculations are manual. Every amount is exact to the penny, so no additional rounding is required.

The commission base is the customer's net result across the whole market, not necessarily the profit from one bet. Each customer has only one position here, so those amounts coincide. With several positions, net market winnings may differ from the profit on an individual matched bet. Those calculations and other commission schemes are outside this guide's scope.

What happens if only part of an offer is matched?

Only the matched amount becomes a binding bet. The unmatched remainder stays open as an offer.

Consider a separate hypothetical order, not the fully matched bet in the table:

• Offered back stake: £10 at 3.00.
• Matched back stake: £4.
• Unmatched remainder: £6.

Only £4 has been matched. The lay liability on that matched portion is:

£4 × (3.00 − 1) = £8

The remaining £6 may be matched later, cancelled or expire. Cancelling that remainder does not cancel the already matched £4.

Under the selected exchange rules (§23), a cancellation request is not confirmation that an offer has been removed. Check the order's final status: the remainder can still be matched before removal. Funds may also remain reserved for an unmatched order, so “no concluded bet on the £6” does not necessarily mean those funds are available.

Unless you have selected in-play carryover or the special XSP option, the unmatched remainder expires at the event’s actual start time under the selected rules. It can still be matched before then.

What should you check in the operator's interface?

Check the product, market, matched amount and applicable commission—not just the amount originally offered. The binding bet may be smaller than the order you submitted.

Use the available order details and account information to check:

• Product: the betting exchange, not the sportsbook.
• Market: the football 1X2 market.
• Selection and period: “A to win in regular time,” subject to that market's rules.
• Side and odds: back or lay; 3.00 in this example.
• Amounts: the amount offered and the amount actually matched.
• Lay liability: the lay customer's amount at risk, not the matched back stake.
• Remainder: the unmatched amount and its current status, including after a cancellation request.
• Commission: the rate applicable to the account and the basis on which it is charged.

Field names vary by interface. The illustrative diagram above does not reproduce actual controls.

Sources for the example's rules

• BETDAQ Terms and Conditions, Parts 1–2, version 30 July 2026, updated 4 August 2026: §§20–23 cover matching and unmatched offers; §21.1–4 covers the commission base and rates; §22.17.3 covers the charge at settlement; §26 covers XSP. The link opens the full official text as JSON.
• BETDAQ Exchange Rules, version 25 September 2026: §1.2.3 covers event periods generally, and §26.1.1 covers football. The link opens the full official text as JSON.