There is a lot of uninformed punters using the exchanges(particularly on sports) If you know what you are doing, you can gain a significant edge. As far as the financials go, unbelievably some guys are using their TV (teletext) to monitor the markets. Now that's just asking for a serious mugging!
I have used betting exchanges for ages, Started using these sites back in 2000. My heritage comes from a gambling background. There is plenty of money to be made and ways to make it on Betfair. I used to use Flutter before it was merged and then moved to Betfair.
It is a trap though for people not used to either the markets or used to probability theory. As you are placing % bets effectively you need to have your head screwed on. Betfair is much better value than IG binary bets.
"It has got to be gamblers, who would take anything less than even money. Besides 1.65 up as oppose to 1.65 down is crazy. Maybe you can enlighten me."
Aha you see there is a perfectly good rationale for taking anything down to 1.01!! I don't know which market you are talking about so difficult to guess where you are coming from.
One thing I have noticed is that Betfair is populated by chartists. The prices on the Betfair tend to be skewed in the current short term market trend. Which of course is a mistake!!
as far as i know they have certain market makers(individuals) who have to set the prices.Its the same with most of betfair,they allow so many people to do this. At the end of the day its just an api that works automatically and they just provide the liquidity. Cant believe that betfair haven't tried to expand this area. They may even tell you who it is if you ask them.