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How Arbitrage Betting Works

How Arbitrage Betting Works

Arbitrage is a very sophisticated way of taking advantage of price variation between one or more markets, and it has been used for a very long time by smart professionals in all sorts of areas of business.

Someone who commonly works with arbitrage is called an arbitrageur, and what this means is that they will make a profit based on the imbalance between two profit margins.

In other words, it’s very much like buy low – sell high, where you would take in a large return by toying with certain legal loop holes. Arbitrage betting is extremely popular amongst professional sports investors, because it’s a perfectly good way for them to take the risk out of the equation and make profit 100% of the time, without relying upon sports systems or odd mathematical strategies.

The way that sports arbitrage works is simple. If you have two teams that will soon be competing in an event, normally you would make a wager for just one. You try your best to stabilize the odds and pick the best bet, but this is almost always a 50/50 shot. You will either win or you will lose and there is a lot of risk involved with this approach to sports investing.

With arbitrage betting it’s different. Instead, you actually place a bet on both teams. One loses and you lose the stake, one wins and you keep the balance on this team, but you also rake in the profit from the return on your investment from the winner.

You can win every time with this method and it’s perfectly legal, but the key is to find the events that have the best arbs with the best odds and the best percentage of profit potential, and ideally as quickly as possible.

The downfall is that doing so is difficult. Many sports investors rely upon arb calculators and do a lot of the math themselves, but with arbitrage betting things can move fast.

What you need to get is a software tool that does the tracking for you and allows you to place bets through the program with the bookmakers online. Such a tool should also handle the calculations for you and display the data so that it’s easy to scan through as well.

In more detail, what arbitrage betting really does is allow the sports investor to leverage the opinions of the bookmakers for a certain event. By placing a bet with all of the bookmakers you can greatly increase your odds of winning, by making a stake on each possible outcome.

The drawback online is that arbs have a lifespan of just 15 minutes, making it very hard to lock in a great opportunity. However, there is a program that was developed to alert you with an app so that you can place a bet over the phone or through the software.

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