What is Betfair?
Betfair is a betting exchange, and it is the one most Australian matched bettors use. Instead of betting against a bookmaker, you bet against other Betfair customers, which means you can lay bets as well as back them.
How Betfair is used in matched betting
Every matched bet has two parts: a back bet at a bookmaker and a lay bet on an exchange. Betfair is where you place that lay bet. You lay the same outcome you backed, so whatever happens, the two bets cancel out and you keep the value from the bookmaker's offer.
Commission
Betfair charges a small commission on your net winnings in each market. The calculator accounts for this, so the profit figures you see already include it.
Is Betfair the same as a betting exchange?
Betfair is a betting exchange, the largest one. If you want the general idea first, read what is a betting exchange.
Next steps
Learn how to size your lay bet correctly with what is liability, or read the complete guide to matched betting.