Online betting exchanges are platforms that allow users to bet against each other rather than against a bookmaker. Participants can either back an outcome they believe will happen or lay an outcome they think will not happen. This peer-to-peer betting model often results in better odds for users compared to traditional betting methods. These exchanges operate by taking a small commission on winning bets, which helps maintain the platform. Popular examples of online betting exchanges include Betfair and Smarkets. Users can also trade bets in real-time, adjusting their positions as events unfold, adding a dynamic element to the betting experience.