Tell me about an exchange please!

[prk]

I know VERY little about how a sports exchange works. Without too much thought, i believe that an exchange let's you play "bookie" and set your own lines for certain games, which you then limit the amount of action you'll take on that certain game.

Is this correct?

[ QUOTE ]
I know VERY little about how a sports exchange works. Without too much thought, i believe that an exchange let's you play "bookie" and set your own lines for certain games, which you then limit the amount of action you'll take on that certain game.

Is this correct?

[/ QUOTE ]

You make offers in the hopes another trader will take the opposite side (market-making), or accept another trader's currently existing offers (price-taking).