The beginners guide to Arbitrage Betting
posted on 16-11-2017 by Gurusoccer
Arbitrage betting explained in simple terms. See how it works with an easy example. Potential pitfalls of arbitrage betting.
Τhe definition of Arbitrage betting:
What is Arbitrage betting;
Example of an arbitrage bet
|Arbitrage (P1/BB & P2/BA)||1.42||3.93||95.9%||100|
The margin is indicated for each bookmaker i.e. the edge in their favour. By cross-matching the odds from Player 2 at Bookmaker A (3.930) with those for Player 1 at Bookmaker B, (1.420) the margin is in the bettor's favour, providing a guaranteed return of 4.1% (100 - 95.9 = 4.1). Importantly, your stake needs to be in proportion to the odds as illustrated, which gives a guaranteed return of €4.30 whether Player 1 or Player 2 wins.
This principle can apply to any betting market, beyond just two selections, including spread betting, while it also has wide application in live betting where arbitrage opportunities are constantly available by Backing and Laying in a constantly shifting market. You can also use free bonuses in an arbitrage bet to lock in a guaranteed profit, but the conditions that apply are restrictive.
Why do arbitrage opportunities occur?
Though you may be simply interested in profiting from arbitrage, it is important for context to understand why arbitrage opportunities occur. These are the main reasons::
• Bookmakers differing in opinion
• Bookmakers taking a specific position or running a promotion
• Bookmakers slow to move their odds or simply making a mistake
The first of these is the most common, and is particularly relevant in relation to Pinnacle as their risk-management is regarded as among the best online. As a result, our odds feature more than any bookmaker in arbitrage opportunities, even more so because we don't offer betting promotions.
Potential pitfalls of arbitrage betting
Stake limitation & account closure
Some bookmakers dislike arbitrage players as they don't fit their desired player profile. As Pinnacle has a unique business model based on volume, they don't care what the betting intent is - they are arbitrage friendly.
Fleeting Arb Opportunities
Arbitrage Betting - Getting Started
Original source: www.pinnacle.com