Arbitrage Betting Guide Page 1
Definition Of Arbitrage Betting
In betting terms, arbitrage involves covering all possible outcomes of a specific event to earn a profit, no matter the outcome. An arbitrage betting opportunity comes about when the odds to back an event are higher than the odds to lay that same event, thus enabling a profit to be gained from the event.
Using Arbitrage Betting Methods
As mentioned previously, an Arb is formed when the odds to lay a bet are lower than the odds to back a bet (after taking any percentages of commissions into account).*
This means that you can back an event to happen at the Bookmakers, and by entering the correct Lay stake at the Exchange, then no matter what happens you will have made a profit. If the event wins at the Bookmakers, you will have won (Bookmaker will have higher odds than the Exchange in the arb) so you will have won the largest amount. You would also have to pay out at the Exchange, because of the Lay which you made (you made a bet that the above event wouldn't happen) but due to the difference in odds, you will pay out a smaller amount at the Exchange compared to what was won at the Bookmakers.
*There are other ways to form an arb, without using an Exchange to lay a bet. This involves backing an outcome at one Bookmaker, and backing the other outcome at another, and is a lot more complicated then using an Exchange to lay, as there are more outcomes to cover (the draw is normally another possibility).
Though arbing does involve moving large amounts of money into the Exchange to cover the liability, it will not be gaining any interest here so you must be actively arbing or using the liabilty to match-bets to gain the Bookmakers bonuses (as mentioned on the previous page). There will be no point in transferring large amounts of cash from your perfectly good bank account with its %5 interest rate, unless you are actively going after arbs. In which case you will be able to beat any kind of interest rates set by the banks, depending on the amount of time you spend arbing with your funds. Arbing can be an excellent way to multiply your money, but ultimatetely the amount you earn depends on the amount of time you are willing to spend searching for and performing arbs.
Please note: Arbitrage betting will involve placing bets with large amounts of money - easily a few hundred pounds each time, so you will obviously need a fair amount of money to start arbitrage betting. Obviously if you are placing large money bets, mistakes can happen - and at this level they are very costly. Be careful that you fully understand what you are doing before you start placing big money bets on any arbs that you find.
Overview Of The Arbitrage Betting Process
Arbitrage betting can be a quite hard subject to get your head around, especially if you haven't read the past section about matched betting, so I would highly recommend that you read these pages several times or even print these pages off. Arbitrage betting will involve placing large money bets, and so it is important that you fully understand what it is that you are doing. If you would like to print off the pages that describe the process of arbtrage betting, click the printer icon below to load up a printer-friendly version of the arbitrage betting section of the site.
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