How a betting exchange works: back, lay, liquidity and commission
On a sportsbook, players bet against the bookmaker at prices the bookmaker sets. On a betting exchange, players bet against each other at prices they choose, and the exchange earns a commission. Here is how it works — and what it means if you want to offer one.
Published October 23, 2026 · 5 min read · Maatgaming
Back and lay
Backing means betting that an outcome will happen, exactly like a normal bet. Laying means betting that it will not happen — the player takes the role of the bookmaker.
Example: a player backs a team at 3.0 for €10. If the team wins, they collect €20 profit. The player who laid that bet accepted a liability of €20; if the team does not win, the layer keeps the backer's €10 stake.
The order book and matching
Every unmatched back and lay offer sits in an order book. Players see the best available prices and the money waiting at each price, just like a stock exchange.
A bet is matched when a back and a lay meet at the same price. Bets can be matched in part as money arrives; the rest stays open until it is matched, cancelled or the market closes. In play, markets suspend automatically at key moments such as goals.
Liquidity: the money that makes it work
An exchange is only as good as its liquidity — the amount of money available to bet against. Thin markets show wide gaps between back and lay prices and leave bets unmatched.
Liquidity comes from players, from automated market makers that keep prices tight, from professional liquidity providers connected by API, and from shared pools across several brands. A hybrid mode can also fill unmatched demand at sportsbook prices.
How the exchange earns
Instead of building a margin into its prices, an exchange charges commission on net winnings in each market. Rates are often tiered, so active players pay less as their volume grows.
Some exchanges add a premium charge for accounts that are consistently profitable, and offer rebates to market makers that provide liquidity.
What operators need
To run an exchange you need:
- Fast, reliable market data: every price, volume and status change in real time.
- A matching engine with partial matching, in-play suspension and cross-matching.
- A plan for liquidity from day one.
- Trader tools: price ladder, green-up and cash-out, P&L per selection.
- Back-office control of markets, settlement and commission.
Exchange at Maatgaming
Maatgaming offers the exchange two ways: as a real-time data feed with full back and lay depth, or as a complete white-label exchange under your own brand — trading interface, player accounts, wallet, payments and back office included. It shares the player account and wallet with our sportsbook and casino.