Classic sports betting is one of the most common methods of making a living with gambling, but it is far from being the only one. We also have arbitrage betting and sports trading, both very popular among certain gamblers. To use these techniques you’ll need to analyze the odds, market swings, and other variables, to ensure the best outcome.
Arbitrage Betting in a Nutshell
Arbitrage can be resumed as the practice of betting on opposite outcomes for an event at different odds. This is done in such a way that no matter what happens, you have at least a small profit at the end. As an example, let’s assume we are betting on a boxing match fighter A and fighter B.
Now let’s consider 2 bookies, Bookie 1 gives “to win” odds of 2.0 for Fighter A and 1.9 for Fighter B. Bookie 2 gives odds of 2.0 and 2.3 respectively. Using an arbitrage calculator is the best approach to get the figures you need. Assuming you have a total of 1000 Euros, the calculator suggests betting 525 euros on Player A to win on Bookie 1 and 475 euros on Player B to win on Bookie 2.
If Player A wins, you will earn 525 euros * 2.0 = 1050 euros on Bookie 1 and lose 475 euros on Bookie 2, meaning we have a profit of 50 euros. If Player Y wins, you will earn 475 euros * 2.3 = 1092 euros on Bookie 2 and lose €525 on Bookmaker 1, meaning we have a profit of 92 euros.
So, as you saw in the example, we make a small profit no matter who wins. This is the basis of arbitrage betting. Identifying and capitalizing on market differences to make a risk-free profit.
The Pros of Arbitrage Betting
- The key benefit of this technique is that it is risk-free. Because you are not speculating, but using verified odds from multiple sources.
- Furthermore, you can profit by identifying discrepancies in odds or mistakes made by the bookies.
The Cons of Arbitrage Betting
- The negative is that locating and implementing arbitrage opportunities requires a substantial amount of effort, time, and cash.
- You should also have several accounts and be prepared to gamble fast before the odds shift or the market closes.
- Not to mention that bookies are aware of this strategy and have the right to limit your accounts, cancel your wagers, or even ban you.
Bet Trading in a Nutshell
Trading in betting consists of buying and selling bets. This is done on an Exchange, and like with arbitrage the goal is making a profit regardless of the final result. This involves backing (betting in favor of a specific outcome) and laying (betting against the same outcome) at different values.
Traders can lock in profits or control losses before the event starts or ends. For example, if a trader stakes $100 on Team A to win at odds of 2.0, they will be paid $100 if Team A wins. If Team A gets a point, they lay on Team A to win at odds of 1.5 odds with $133.33, which gives us a $33.33 profit regardless of the outcome.
The Pros of trading
- You are not forced to predict the winner or score of the event, you just need to predict how the odds will change, following the flow of the game.
- Nowadays there are several tools available to help you analyze the odds, market movements, and risk variables.
- And you can limit your losses if you close your position before the game ends.
The Cons of trading
- Finding and capitalizing on trading opportunities necessitates a large investment of money, time, and research.
- You should also have accounts with multiple betting exchanges and the ability to place bets quickly before the odds shift or the market closes.
- Rivals with more experience or resources than you will be a tough competition.
Conclusion about arbitrage betting & trading
Making a career out of these tactics is entirely possible, but it requires a tremendous amount of time and commitment. However, with modern tools, performing arbitrage betting and trading has never been easier. Our final piece of advice is to be diligent and look for arbitrage-friendly software. Maintain your strategy, develop a budget, and stay away from chasing losses or being impulsive.
