How To Eliminate Sports Gambling Risks With Arbitrage Betting
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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 trade. At a 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 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 miniscule 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. 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, sport 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 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.