What is Arbitrage Betting? Understanding with Types and Tips

Arbitrage betting, also known as sure betting, is a betting strategy that makes full use of discrepancies in odds set by different bookmakers for the same event. By placing bets on all possible outcomes of a sporting event across different sportsbooks, the bettor can secure the profit irrespective of the final result.

While the concept seems straightforward, arbitrage betting requires thorough research and quick decision-making.

Basics of Arbitrage Betting Explained

To know what is arbitrage betting, you must first understand the basics of it. Arbitrage betting depends on one fundamental principle: finding the difference between odds by bookmakers. Bookmakers set the odds depending on their assessment of the likelihood of an outcome. The odds are subjective, leaving room for discrepancies and creating arbitrage opportunities.

How Arbitrage Betting Works?

To understand the arbitrage betting better, let us consider the following example:

Imagine there is a tennis match between Player A and Player B. Consider that one bookmaker (ABC) offers the following odds:

• Player A to win: 2.10
• Player B to win: 1.90

Meanwhile, another bookmaker (XYZ) offers slightly different odds for the same match:

• Player A to win: 1.95
• Player B to win: 2.05

In this case, it is possible to make a profit by betting on Player A at the bookmaker ABC and Player B at the bookmaker XYZ, irrespective of the match outcome. Here is how:

• You bet Rs. 100 on Player A to win at the odds of 2.10 with ABC.
• You bet Rs. 100 on Player B to win at odds of 2.05 with XYZ.

Now, let us examine the outcomes:

• If player A wins, you will get Rs. 100 x 2.10 = Rs. 210. Since your total betting amount was Rs. 200, your net profit is Rs. 10.
• If player B wins, your return will be Rs. 100 x 2.05 = Rs. 205. After subtracting your total stake of Rs. 200, your net profit would be Rs. 5.

In either case, you are guaranteed to win. Now that you know what is arbitrage betting, go for it on a trusted online sports betting platform.

Types of Arbitrage Betting

The following are the main types of arbitrage betting:

1. Back/Back Arbitrage

In this arbitrage type, you place bets on all possible outcomes of an event using different bookmakers. Ensure that the odds differ between the bookmakers enough that the profit is guaranteed on your total bet amount. For example, betting on a tennis match where one bookmaker has favored player A, while the other bookmaker has offered higher odds on player B. 

2. Back/Lay Arbitrage

You place a bet on one outcome at a traditional bookmaker and place a lay bet against the same outcome at a betting exchange. For example, back team A to win with the bookmaker and lay the same team on a betting exchange.

3. Two-Way Arbitrage

If an event has only two outcomes, you can bet on both outcomes using different bookmakers. For example, betting on one player to win with one bookmaker and the opponent with a different bookmaker will earn you profits due to differences in odds.

4. Three-Way Arbitrage

For events with three possible outcomes, you place bets on all three outcomes with different bookmakers that offer favorable odds. For example, you bet on team A to win, team B to win, and the match ends in a draw with different bookmakers.

5. Dutching

In arbitrage betting, you place multiple bets on different outcomes while proportionally distributing your stakes. Due to this, you make profits irrespective of the outcome. For example, in horse racing, you can back several horses to win in the same race by using the odds and distributing stakes accordingly.

6. Middling

This is used in spread betting, where you bet on the spread at one bookmaker and then bet the opposite side of the spread at a different bookmaker. If the result lands in between both the bets, you win both bets.

Arbitrage Betting Strategy and Tips

The following are different arbitrage betting tips that you should keep in mind before going for arbitrage betting:

• Use multiple bookmaker accounts.
• Use odd comparison tools.
• Target markets with low volatility.
• Stick to high-liquidity events.
• Watch out for betting limits.
• Place bets quickly.
• Keep track of exchange rates.
• Diversify your bet types.
• Be patient.

Now that you know what is arbitrage betting and have handy tips, you can try betting on a trusted online sports betting platform.

Advantages of Arbitrage Betting

The following are some of the advantages of arbitrage betting:

1. Guaranteed Profit

Arbitrage betting, if done correctly, will lead only to profits, irrespective of the results. Although this betting type requires thorough research of the odds offered by different bookmakers.

2. Diverse Opportunities

Arbitrage betting is not limited to only one sport. As the odds discrepancies can arise in any sporting market, bettors can diversify their bets across multiple sports and events.

3. No Need of Detailed Knowledge of the Sport

In arbitrage betting, unlike traditional betting, there is no need for in-depth knowledge of a sport. You need to understand and exploit the difference between the odds provided by various bookmakers.

Final Thoughts

With a proper understanding of what is arbitrage betting, you can book profits consistently. If you study the odds across different bookmakers, you will understand that the odds vary for the same event. You can take advantage of the difference and place multiple bets for the same event.

Get to know what is arbitrage betting and go for arbitrage betting on a trusted online sports betting platform, Yolo247.

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