The Betting Exchanges – A Recession Proof Market
The banking crisis, which started with the whole sub-prime fiasco, sent the global economy hurtling towards recession. Billions of pounds were wiped off the value of shares as panic selling followed. Because of the lack of confidence among banks and financial institutions during a recession, trading any of the markets is not really an option unless you are well placed to adopt a long term position. Short term trading opportunities can be hard to find.
This is in complete contrast to the betting exchanges which are considered the closest thing to a recession proof market. The bet exchanges are the sport betting version of the stock market. These websites allow people to trade on the fluctuating betting odds of certain teams, players or results. Many traders have a background in the spread betting or financial trading industry. Some have switched their attentions to the bet exchange. This is because they find it an enjoyable way to earn a lucrative income and far less stressful than trading the traditional markets.
The betting exchanges offer person to person betting. This is where users take on the role of the bookmaker themselves and the exchange makes its money by taking a small commission. The beauty of these online betting sites is that there is never any shortage of users or liquidity. Growth is set to continue as more people become aware of this alternative to the traditional bookmaker. There is a multitude of markets available to bet or trade on including all the popular sports both in the United Kingdom and abroad. You can also bet on other markets outside of sport such as financial markets and politics.
The biggest exchange is Betfair who first pioneered this online betting phenomenon and its closest competitor is Betdaq. These two sites have the vast majority of the market and the most liquidity. However, there are a number of smaller up and coming betting exchanges and more are likely to emerge in the years ahead. If you are looking for a financial market to exploit in a downturn, try the betting exchanges. You can discover why they are known as a recession proof market.