A betting exchange is a platform where individuals can bet against each other rather than against a bookmaker. This means that users can both place bets on outcomes and offer odds for others to bet against. For example, if someone believes a team will win a match, they can back that team, while another user can lay a bet against it, creating a marketplace for bets. One of the main advantages of a betting exchange is that it often offers better odds than traditional bookmakers, as it operates on a peer-to-peer basis. Additionally, users can trade their bets, allowing for more flexibility and the potential to profit from changing odds, similar to trading stocks in a stock market.