A betting exchange is a facility that allows peer to peer betting, i.e. customers bet against each other not against Betfair themselves. Bets can be bought and sold in much the same way as shares are bought and sold on the stock market. This opens up a wealth of possibilities for the user which had previously not been possible when using a standard bookmaker. However, many users do not fully realise the difference between Betfair and a bookmaker, or how they can take advantage of this unique method of wagering.