Centenary Arbitrage still making profit in 2020
Old school arbitrage, as it has always been known, still help players make great profit in online betting. Arbitrage betting has a big impact since bettors are making bookmakers lose money.
Arbitrage Betting or also known as miracle bets
Arbitrage is something that has been around for centuries and it still works the same. To get an understanding of arbitrage betting, it can be a good idea to get the general idea of what arbitrage is.
Arbitrage is the process of buying something and later or almost simultaneously sell it for profit. Looking back a couple of centuries, a person using arbitrage would have been somebody buying commodities such as tea, furs, gold, or silver at one place and selling it in another place to get some profit. Prices on different commodities are determined by its supply and demand. You would buy something cheap where the supply is very high, as it happens with tea in India; then, sell it where supply is low and demand is high, such as the United Kingdom. One of the richest families that have ever existed, The Rothschilds, made a fortune in arbitrage using bonds.
How complex is it to learn arbitrage betting?
Arbitrage is still very common today in commodities, stock, and currency. These can be more complex such as triangular arbitrage.
An example of this can be a trade-in currency. In this case, the currency is converted to another currency at one bank (first bank); the resulting currency is converted for a second time to a different currency at a second bank, and finally, it is converted back to the original at a third and last bank.
For example, assume you start with $2 million. You see that at three different banks with the following currency exchange rates are immediately available:
Bank 1: EUR/USD = 0.894
Bank 2: EUR/GBP = 1.276
Bank 3: USD/GBP = 1.432
First, you would convert the $2 million to EUR at the 0.894 rate, giving you 1,788,000 EUR. Next, you would take the 1,788,000 EUR and convert them to GBP at the 1.276 rate, giving you 1,401,254 GBP. Finally, you would take the pounds and convert them back to USD at the 1.432 rate, giving you $2,006,596. Your total risk-free arbitrage profit would be $6,596.
By now, you probably already have a pretty good idea of how arbitrage betting works. Arbitrage betting is also sometimes called arbing, surebet, or miraclebet.
Is betting without loosing even possible?
The whole idea of arbitrage betting is that you will have a bet where you cannot lose. This happens because the different bookmakers issuing odds are competing against each other and often don’t agree on the odds. Arbing in itself actually has more in common with trading and math then it has with gambling. Many arbers don’t even have an interest in the sports that they are arbing at. Many football and horse-racing systems have some strategies with arbing within them.
What’s an “arb”?
An “arb” is the same as an arbitrage bet, that is when the back odds are higher at the bookmaker than the lay odds are on the exchange.
Arb betting is possible when there is a discrepancy between odds that allow a profit to be made by covering all outcomes. Usually, this is a binary bet – with just two outcomes. An example would be a tennis match, where only two results are possible.
When pricing a market, bookmakers will almost always factor in an edge, where the total odds of all outcomes are more than 100%.
Arbitrage systems rely on the combined odds from the different firms producing a negative margin – less than 100% – so that the edge is in the favor of the customer
An example of how arbitrage could be applied to a tennis match:
|Rafael Nadal||Nick Kyrgios||Market %|
|Bet365 – Odds||1.300||3.930||102.4%|
|William Hill – Odds||1.420||2.900||104.9%|
|Arbitrage, betting on Nadal with William Hill and Kyrgios with Bet365||1.420||3.930||95.9% (a 4.1% profit margin)|
In this example, if we bet £100 on Nadal at 1.42, it would return us £142 if he wins the match. By then placing £36.13 on Kyrgios at 3.93, we would match the expected return of our Nadal bet (or just shy at £141.99).
In total, we’d be staking £136.13 for a guaranteed return of £5.86 (141.99 minus our 136.13 stakes).
Lots of bookies claim to never restrict or limit players but this is usually untrue. Bookmakers are losing money on arbing and have automated systems as well as manual checks to limit players from arbing. If you try to do so, your account can get closed, restricted, or you just won’t be getting bonuses and other promotions or benefits. Most often, there is no communication explaining why this happens to your account and it’s usually referred to as gubbing.
Arbitrage betting software
Despite bookmakers’ desperate attempts to prevent arbing, players can still find many ways to do it. There is a huge selection of arbitrage betting software that allows players to discover betting opportunities in different markets without having to do it manually. On the arbitrage betting guide presented by bästabettingsidorna.se our Swedish readers will be able to get an easy guide about arbitrage betting
This arbitrage software is actually, an arb betting finder, and players can choose between free arbitrage software and paid “Arb Finder”. Depending on your goals and expertise you will find more suitable the free or paid version. Free arbitrage software is a great choice for all those newbies in arbitrage that want to get an idea of how it works. However, free finders have certain limitations that won’t let you go to the next level in the future.
More about arbitrage betting
On the other hand, those players who wish to increase their profit percentage can always change to paid arbitrage software. It is not that expensive, and you see the difference for sure. In general, paid finders will offer many benefits like the following:
- Fast and constantly refreshed bets and opportunities. Thanks to this feature players can place their bets quickly before the bet itself the bet changes and the great opportunity disappears.
- Players can take advantage of useful features like email alerts and arbing calculators.
- Players can enjoy the service both on desktop and on-the-go.
Players can learn a lot, improve their skills, and get a much better return on investment.
To conclude, bettors who enjoy arbing can make the most of their betting accounts with paid software.