Sports Betting Articles > What Is Arbitrage Betting?
What Is Arbitrage Betting?
by Pinnacle Sports
Arbitrage betting is a system for exploiting differentials in odds for a specific market at two or more bookmakers. It guarantees the bettor a profit, as the combined odds produce a negative margin – a margin in the bettor's favour.
This can occur when bookmakers make mistakes, but generally results from differences in opinion or variations in margins that produce a wide spectrum of odds.
A Pinnacle Sports account is essential for any would-be Arber due to its reputation for providing the best odds with low margins and high betting limits. Sign up now if you are serious about Arbitrage betting.
Why Every Arber Needs a Pinnacle Sports Account
Arb situations commonly occur because bookmakers differ in opinion on a particular market. This increasingly happens with more obscure events, where the variation in margins offered across a range of bookmakers is greater.
Pinnacle Sports is widely regarded as offering the best odds online; for example, we offer markets of 101.5% for soccer betting and baseball betting, and apply a low margin policy to all markets posted.
Any serious Arber will tell you that a Pinnacle Sports account is essential, and any of the widely available arb software/engines will often show you Pinnacle Sports on one side of an arb.
Arbitrage Betting - An Example Arb
The best way to illustrate Arbitrage betting is through a simple example. Take the odds on a tennis match between Player A and Player B offered by two hypothetical bookmakers as illustrated in the table below.
The market percentage is indicated for each bookmaker i.e. the edge in their favour. By cross-matching the odds from Outcome 1 at Bookmaker A with Outcome 2 at Bookmaker B, the market percentage turns in the bettors' favour providing a guaranteed return of 4.1% (100-95.9=4.1).
This principal can apply to any betting market, beyond just two selections, including spread betting, while it has wide application in live betting where Arbitrage opportunities are constantly available by Backing and Laying in a constantly shifting market. You can also arb free bonuses to lock in a guaranteed profit, but the conditions that apply are restrictive.
Arbitrage Betting - The Potential Pitfalls
As with any scheme that promises great riches for no risk, there is some small print:
STAKE LIMITATION & ACCOUNT CLOSURE
Limits vary at different bookmakers, which may hinder your ability to properly exploit an arb, so it is important to know that Pinnacle Sports offer the highest limits online. Some bookmakers also close accounts of consistently winning players. This does not happen at Pinnacle Sports; we welcome winners as they help us tighten our odds.
Where a mistake has been made, bookmakers are at liberty to retrospectively cancel a bet, leaving you fully exposed on the other side(s). This can easily wipe out all of your small profits accrued over a long period.
To fully exploit arbs, you must have a huge number of funded bookmaker accounts, as well as the time to take full advantage. This involves significant organisation and effort. Many practice arbing for a living (aping financial arbitrage) in which time invested must also be measured as a cost.
Bookmakers are constantly changing their odds and assessing risk, so the average life-span of an arb can be as little as 15 minutes. This makes time of the essence, and when humans are time-pressured errors inevitably occur. Arb software systems can help in this regard, but their cost will eat into your profit margin. Make sure you have plenty of payment options, including e-wallets which often offer the fastest deposit methods.
Arbitrage Betting - What To Do Now?
When you have read this article, and researched elsewhere, you are ready to start arbitrage betting, so open a Pinnacle Sports account today.
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