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What is sports
arbitrage betting?
In the world of finance the
expression arbitrage trading occurs when an arbitrageur buys a
currency or a stock in one market and immidiately sells it in
another for the purpose of taking advantage of price variations
between the markets. This is not a new phenomenon but have excisted
since the computer was introduced in the fincance market.
These situations arise in the odds
market because the different bookmakers offer different odds on the
same event. Instead of two different markets we have different
competitors on the same market that value their "product" different.
Here are some of the reasons:
1.The bookmaker's experts
disagree on the outcome of an event.
2.In other situations a bookmaker expect a lot of betting on a certain
outcome and will try to balance their book by attracting customers
to place their money on less likely outcomes with very attractive
odds.
If the price difference between the bookmakers is big enough there
will arise situations where you are guaranteed profit by
contstructing your bet in a certain way. This is called arbitrage
trading or a "sure bet" and is completely risk free.
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