How do bookmaker hedge their bets?

Question

How do bookmakers manage to hedge the risks they take on each bet? Is there a trading platform where large bookmakers exchange their positions?

Answer 1

When people bet on outcome 1 the odds drop and outcome 2 raises. This is how they manage to win always.

Answer 2

In the UK they hedge their bets on Betfair.com. Most on-course bookies are just agents for Betfair these days.

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http://www.OnlineBettingExposed.com

Answer 3

The odds are suppose to make betting even and change as bets get heavier to one side or the other. The loser pays a premium on their loss on illegal sports bets made in Texas. Small bookies always have a larger bookie and they another that they can lay off bets with if they get too much one sided.