subject: What is Arbitrage and How can we profit from it? [print this page] What is Arbitrage and How can we profit from it?
From Wikipedia: Betting arbitrage, miraclebets, surebets, sports arbitraging is a particular case of arbitrage arising on betting markets due to either bookmakers' different opinions on event outcomes or plain errors. By placing one bet per each outcome with different betting companies, the bettor can make a profit. As long as different Bookmakers are used for arbitrage betting the Bookmakers do not have a problem with this. Each Bookmaker will still make profit due to their calculations.
It's almost impossible to find that kind of situation manually, but with the help of some kind of computer calculation, it's doable now.
Some people do it casually, in their spare time in order to make some extra money. Other people invest a lot of money and trade as a full time job so that they can work from home. Sports Betting Arbitrage is not an underground secret society activity, it is well known, well practiced and very public.
Since arbs represent guaranteed profits, you are not really gambling at all... and that's why it is called Sports investing.
How is it possible to achieve 100% Risk Free Profits?
Using a technique commonly known as "arbing" or "surebetting", it is possible to use the differences in odds provided by various bookmakers on selected events to make yourself a guaranteed Risk Free Profit.
Types of Arbs
1 - 2: This is the simplest and most common type of arbitrage. In 1 - 2, you will need to place a bet with your first Bookmaker1 in favor of the victory of Team1 while placing the opposite bet with Bookmaker2, i.e., for the victory of Team 2
1 - X2: Bookmaker1 -> Victory of Team1 vs. Bookmaker2 -> Draw Or Victory of Team 2
1X - 2: Bookmaker1 -> Victory of Team1 OR DRAW vs. Bookmaker2 -> Victory of Team 2
Total: Total amount of goals in the Game. Example: Bookmaker1 -> Goals Over 2.5 vs. Bookmaker2 -> Goals Under 2.5 etc...
1-X-2 is a three way arbitrage with outcomes of victory of Team1 OR a Draw OR victory of Team2
F0-X-2 is a three way arbitrage with Team1 handicapped vs. a Draw OR victory for Team2. You can read about Handicap definition here: http://en.wikipedia.org/wiki/Asian_handicap
1-X-F0 is a three way arb involving victory of Team1 OR a Draw vs. victory of Team2 handicapped
