Sports Arbitrage Betting Best Practices That Reveal the Real Risks
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Due to the economic crisis from the COVID-19 Pandemic, many people have lost their jobs. Therefore more and more people take part in sports betting in order to solve financial problems. At the same time, many so-called “zero-risk online arbitrage systems” and “A sports betting system for winning 100% of your bets” flood the entire internet.
Sports Arbitrage Betting Best Practices
I do not want to comment more on these types of systems, just hope you can read my understanding of the risks involved before you use them.
As common sense, all the profits are based on the different odds from different makers. All the above systems tend to guide you on how to operate betting in the known rules of the odds. But do you really read these rules before yours betting? In fact, all the oddsmakers have been added to their advantage in terms of the invisible place. Do you read that?
Here are unexpected variables that can ruin of the betting even the best plans:
- Differing bookmaker Terms and Rules
Different bookmakers have different rules about how to manage the unexpected events, such as play games’ delay, sport event canceled and so on. Then some makers will return your money and some will act on the bet completely. If like that, it is not arbitrage and results in 50 percentage chance you win or lose.
- Placing the Wrong Bet / Dawdling
Small accidents may be expensive. If you are in trouble when placing wager, the risk of making mistakes can happen. For example, if you are placing on an over/under and at one odds maker both over and under have the same odds. It is not uncommon to accidentally back the wrong option and end up with two bets on the same outcome! Rushing and making mistakes is a potential risk.
Also if you place one bet and then take too long to place the second one, the odds may have changed enough to render the odds out of your plan. You might miss the second bet completely.
- Odds Changing/Expiring
Generally speaking, this is the most common problem faced in sports arbitrage betting. The longer time you stay in betting the more chance that the odds will change or even expire.
If one of the odds we have used in the betting arbitrage was in fact a mistake and bookmaker decide to change or expire, we are obviously missing the second bet. This is also a potential risk like number 2.
Lack of experience in Sports Betting Arbitrage is the most important risk of all. Not make sense of odds, not understanding how to work, Missing the second bet, all the problem you will create and even not be able to respond in time when the mistakes occur. So inexperience is indeed a risk factor.
- Stake Restrictions
Some bookmakers might put a limit on how much you can stake on your bets. This is not only a risk associated with arbitrage betting but will act as a bottleneck to your entire betting process. You will not able to make good profits due to this restriction.
How To Eliminate Sports Gambling Risks With Arbitrage Betting
Betting or gambling has been such a favorite pastime of many people. Since ancient times people have been casting lots or setting their bets in various events especially in sports. From the gladiator duels in ancient Rome to the bullfights in Spain, people love the thrill of betting.
The problem is, betting is teeming with risks. People waste large sums of money when they lose while betting, some even ruin their lives because of mismanaged gambling. People however love winning and would exert all efforts to profit from their bets. Luckily, clever people discovered a solution to earn from betting without facing the dreaded risks. This solution comes in the form of arbitrage betting, which is now popularly being used in sports gambling.
What is Arbitrage all about?
The term arbitrage refers to the method of trading that ensures profits while eliminating risks. Though arbitrage has been used by people since time immemorial, it has lately become quite popular with the stock market. Arbitrage entails using certain small opportunities to profit during a trade.
At first glance, the transactions being used seem to provide very insignificant profits, but when done on a larger scale, the profit becomes quite substantial and even lucrative. In the world of finance, arbitrage is done by purchasing stocks on one particular market and immediately selling what is purchased to another market that provides an opportunity for a profit of whatever size.
For example, shares of a certain company are being sold for $9.00 in the New York Stock exchange. Meanwhile in the London Stock exchange it is being sold for only $8.50.
This is an arbitrage opportunity or an arb. A trader, who practices arbitrage, or an arbitrageur, would purchase the London Stock Exchange shares and then sell the same amount on the New York Stock exchange. This would entail a 50-cent profit for every share. While this seems to be a minuscule amount, it can translate into a huge sum when shares are traded in large quantities.
How can Arbitrage be Applied to Sports Betting?
In the sports betting world, arbitrage can be employed by taking into consideration the differences present in bookmakers’ odds. Profit is made certain by making bets on each option in the sports event that would entail profits for the arbitrageur whoever would win.
An arbitrageur would comb through the different odds presented by bookmakers on each participant of the sports event, and bet on each one. Whatever is the result of the event, a profit is guaranteed. Just like with its finance counterpart, sports arbitrage is done is large volumes to provide substantial profits, taking full advantage of the arbs, also known as overbrokes, underrounds, and surebets.
For example, on a certain football match, Team A has odds of 11/8 with Bookmaker A. Meanwhile Team B has odds of 4/5 with Bookmaker B. Taking the difference between the two bookmakers translates into a profit of around 2.4%. An arbitrageur would place bets in proportion with the odds. For example, $1000 would be invested in this arb.
The amount would be divided according to the proportion of the odds so that around $431 would be placed on Team A, and then around $569 would be placed on Team B. If Team A wins, the arbitrageur would get around $1023.63, and if Team A wins, the arbitrageur would get $1024.20. This means that the particular arb would entail a profit of around $23 to $24 if an investment of $1000 is made.
Such scenarios are what many investors have been trying out today, yielding favorable results. With sports arbitrage betting, profits are ensured without risks of losing.
To learn more about sports arbitrage betting, there are several websites devoted to this betting technique. A simple search on sports arbitrage betting on a leading search engine would lead one to a vast sea of information about the betting process.