Arbitrage Betting Guide Page 3
Dangers And Pitfalls Of Arbitrage Betting
Of course there are going to be a few points to watch out for when arbing, especially as it involves using a lot of money so you must be extra careful and follow all of the advice given throughout this article. Arbing can be perfectly safe and can be a guaranteed way to get a good return on your money, so don't be put off by the possible pitfalls - just make sure you are aware of them.
Liability
Obviously when going after arbs one of the main drawbacks is the liability. You will need a lot of spare money incase you win at the bookies, and have to pay out at the Exchange. Because of the way Exchanges works, they won't allow you to lay an event until you have the money ready in the account (the full amount which you may have to pay out). This is because it prevents people trying to not pay up and cheat the system. When going about arbing, you tend to pile in with a lot of money at the bookies and you then have to lay an even larger amount at the Exchange to equal this. It may be hard for some people to go straight into the world of arbing unless they have a fair amount of money behind them, that they are able and willing to put in an Exchange.
The Market
An arb is formed from a difference of opinion in the market, and it can be quite a rare occurance. Usually when one does occur, bundles of people pile in with their money, and the arb soon disappears. This can be extremely dangerous, considering some people tend to back an event at the Bookmakers before laying the event at the Exchange. If you saw an arb and placed a £300 bet at the bookies only to find that all of the available money at the Exchange had been taken, you'll be stuck. You might have to settle for a lower price at the Exchange, and make a loss on the bet. You could try and cancel the bet at the Bookmaker, but this is very unlikely to happen.
The best way to avoid this sort of scenario is to be quick when spotting an arb, but make sure you are confident with what you are doing. You don't have the time to make any mistakes, or you'll lose your money. Probably the best way around losing out on a good price at the Exchange is to take the price you need as soon as you notice the arb. Then you can go to the bookies, and place the bet safe in knowing that the lay has already been made.
Please Note: Though there are a few dangers involved with arbitrage betting, these are all easily noticed and avoided, and it is well worth performing arbitrage betting if you know exactly what you are doing. By pointing out the dangers on this page, hopefully you will understand arbitrage betting better, and will know what to watch out for when you are doing your own arbitrage bets. The advantages of arbing highly outweigh the disadvantages, and so it is well worth having a go when you know how it all works.
Bookmaker Limitations
Bookmakers limitations can be a very annoying problem, and all arbers will probably meet this problem one day in their arbing career. As previously mentioned, if someone becomes too 'successful' at the bookies and has been winning large amounts after placing large bets for their arbs, it is highly likely they will be limited to the amount they can place on any one bet. This could mean that the amazing arb you notice at one particular bookies is beyond your reach - they wouldn't take your money for the bet. You must be aware of any limiations set upon you by the bookies if, when matching/laying a bet, you lay at the Exchange first. It would be a disaster if you were to lay a large amount at the bookies before being refused to make the equal bet at the bookies. Of course the way around this could be to make the bet at the Bookmaker first before laying at the Exchange, but this means that the lay price you wanted has been taken up already.
Usually the limitations opposed will depend on the bookmaker that you are using. Some will not mind the fact that you are winning three or four thousand pounds in bets, and will continue to allow you to place high money bets. Some bookmakers on the other hand will get annoyed when you win a three or four hundred pounds bet, and will limit you to placing £5 or £10 bets. Though this is incredibly annoying, it is just something you will have to put up with as their is not much you can do about it. Try and find arbs which involve betting on an event which wont happen, but this is still hard to do.
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