Arbitrage Betting Strategy: How Does It Work – Explained

What does arbitrage betting mean?

The term arbitrage means making a transaction of both buying and selling. The sole motive is to assure a profit. This is used when there is a variation in price for the same product. The buyer buys the product at varied prices and sells accordingly.

Arbitrage in Betting

In arbitrage betting, separate bets are made on the most expected results. And all bets are made simultaneously. It requires research work to figure out the most possible outcomes. It assures you the profit. However, the winning percentage will be small. It involves placing bets on all the results. It doesn’t matter who wins. The strategy will get you the profit.

Working of Arbitrage Betting

As I have explained above, arbitrage betting requires extra caution and research work. Let’s make it clear with an example. There is a cricket match between two teams called A and B. Now, both teams are equally strong. A bookmaker is paying 1.5:1 for winning either of the team. Now, let us assume placing bets on both teams with the same amount. If any of the teams wins, the bettor suffers the loss.

Here comes the role of Arbitrage betting. Now, the gambler needs to look for bookmakers who offer higher odds for team A. And, find another who provides higher for other teams, i.e B. This strategy will provide the winning, any of the team wins.

Where to use Arbitrage Betting strategy

Arbitrage betting is a profit-making strategy. So, you might be wondering why everyone is not using it. The answer is straight. This technique needs extensive research and knowledge of the betting product. The pro bettors go through reliable information about the betting. They go to extreme lengths to collect the information. Sports bettors prefer arbitrage betting the most. And, do not forget that it is a time-consuming process.

Possibility of Arbitrage Betting

As it sounds, that arbitrage betting guarantees 100% winning the bets. But, still, it does not apply everywhere. Gamblers need to look for certain factors. The very first and main factor is to keep a check that whether the margin between both the bookmakers is varied enough.

For instance, if the difference in odds is similar in both. It will get you only the loss.

There are times at which the bookmakers set the odds. At the initial stage, the bookmakers fix the odds as per their own calculation. However, as the game continues, the odds are set again by the bookmakers. This time, those are set as per the current condition and expected results of the game. Now the gamblers have to figure out the arbitrage betting strategy. Calculate the difference between the odds set. Hence, use those for making a profit.

Benefits

We are discussing a lot about this strategy. The major benefit is the confirmed winning. The result of the game you bet on does not matter here. If you have figured out this technique. The odds of betting will favor you.

The other most basic advantage is the simplicity of its implementation. One needs to go through the technique from the base. If you understand it, the rest of the part is quite easy.

Limitations

Everything has both pros and cons. Of course, this is not any different. It is true that once you figure it out, the profit is assured. But, the thing is the task of arbitrage is not as easy as it seems so.

Another limitation is the amount to be invested. Therefore, the betting amount needs to be double general bets. Still, the margin will be the difference between both. Which are quite less. Let’s say if we bet fifty thousand each, still the margin will be 10% max.

To conclude

All in all, arbitrage betting is an extremely useful strategy. This makes the betting logical. By inducing the calculative factors. Still, it needs a precise understanding of the bookmakers. Also, what are the odds? And, what amount to invest. Without the proper knowledge, it will bring nothing but loss. Also, keep a check over, which games this technique could be applied appropriately.

Hope this article will be of utmost use to the readers. Good Luck!!

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