How do I provide liquidity?

Betting Exchange users can 'be the bookie'

With a Betting Exchange, not only can users place bets by matching against existing liquidity, but users can also be liquidity providers by placing limit orders on a given market.

Providing liquidity on the back

Here is what the market price and liquidity look like for the Chiefs v Eagles

Lets say a user thinks the Chiefs are going to win vs the Eagles. The current price to back the Chiefs to win is 1.67, i.e. you can bet $10 to win $6.7. The user thinks that the price is too low, and is only willing to accept a bet at a price of 1.7 or higher. That user can express that view by place a limit order to that effect as shown below.

The order book should shift to show that $10 of stake as unmatched liquidity at 1.7.

That order will now remain as an unmatched order on the orderbook at a price of 1.7 till another user comes in and places a bet at a price of 1.7 or lower for the Chiefs to win.

Providing liquidity on the lay

The opposite to the above is also true where users can provide liquidity to the other side of the orderbook.

Here is what the orderbook now currently looks like.

On the Chiefs market, the price for the Chiefs NOT to win is 1.77. Lets assume that the user thinks that price is too high, and is willing to take a price up to 1.75 that the Chiefs will not win. That user can express that view by place a limit order to that effect as shown below.

The order book should shift to show that $10 of stake as unmatched liquidity at 1.75.

That order will now remain as an unmatched order on the orderbook at a price of 1.75 till another user comes in and places a bet at a price of 1.75 or greater for the Chiefs to not win.

If you have any further questions on how to provide liquidity on BetDEX, please feel free visit us in our Discord or contact us at [e-mail]