Trading and Arbitrage Betting
Trading
Pros & Cons
Arbitrage Betting
Arbing (the common name for arbitrage betting (also known as sure bets) is a strategy that involves placing bets on all possible outcomes of an event to guarantee a profit no matter the result. This is possible because different bookmakers offer different odds on the same event, based on their predictions, errors, or market conditions. Arbitrage requires relatively large sums of money and fast execution, as the opportunities are often detected and corrected by the bookmakers quickly. It can be applied to any sport or event where there are at least two possible outcomes and different odds available for each outcome.
Arbing
Pros & Cons
Arbitrage betting is a low-risk way of making money from betting, as the bettor is guaranteed to win regardless of the outcome.
Finding opportunities can be difficult. They are often short-lived and require access to multiple platforms.
You can use our arbitrage calculator to find profitable opportunities in different markets. By entering the odds and stakes of different bets, the calculator can show the guaranteed profit.
Execute arbitrage bets may be costly. The bettor may need to pay fees, commissions, taxes, or currency conversions for each platform.
Arbitrage is a perfect way of exploiting market inefficiencies and taking advantage of price differences between different platforms.
Relying on these bets is risky. The bettor may face several issues: cancelled bets, changed odds, limited stakes, or account closures from the platforms.
Trading
Unlike traditional bookmakers, betting exchanges do not offer fixed odds, but rather allow users to set their odds and trade with other users. This creates a more dynamic and competitive market, where users can take advantage of price fluctuations. This is similar to the stock market, where you can buy low and sell high, or vice versa. However, in betting trading, you can lay low and back high. It means that you can sell a bet at a lower price and buy it back at a higher price later.
Trading
Pros & Cons
You can use various tools available on the market. Geekstoy, Bet Angel, or BetTrader are some of the most popular ones. This way, you can monitor the odds movements and execute your trades faster and more efficiently.
Trading exposes users to more legal and ethical issues, as it may not be regulated or authorized in some jurisdictions. This may also raise questions about the integrity and fairness of the events.
Trading allows users to profit from both winning and losing outcomes. Hedging or trading out of unfavourable positions at any time is the reason people trade.
Skill and knowledge are key to successful trading. You have to know how the market works, how to analyse the odds and trends, and how to manage risk and bankroll.
Since users do not have to pay commissions to bookmakers, trading provides better value. However, a small percentage of net winnings will go to the exchange.
This strategy involves more competition and volatility. Users have to deal with other traders who may have more experience, information, or resources.
It enables users to access a wider range of markets and events, as well as more liquidity and depth.
It entails more technical and operational challenges. Users have to rely on the performance and reliability of the exchange platform, which may suffer from glitches, delays, or outages.
Legal Aspect
Arbitrage and trading are not illegal. However, they can be seen as fraudulent by some bookmakers or authorities. The following are some examples of fraudulent behaviours. Avoid them when engaging in gambling activities.
Firstly, avoid using multiple accounts or identities to place bets on the same or related events, markets, or outcomes. This is usually associated with:
- attempts to circumvent the limits or restrictions imposed by bookmakers or exchanges
- attempts to manipulate the odds or prices in favor of the player
Next, we recommend against using bots, software, or other automated tools to place bets on behalf of the player without the consent or knowledge of the bookmaker or exchange. It puts other players at unfair disadvantage by exploiting the speed, accuracy, or frequency of the bets.
Colluding with other players or bookmakers to influence the outcome of an event is strictly forbidden. Doing this guarantees a profit for the player and/or their accomplices, regardless of the actual result.
Final Remarks on Trading and Arbitrage Betting
Our final recommendation is to use the best betting platforms. This is a convenient and easy way to find arbing opportunities since you will find offers from multiple bookies in a single account. Lastly, don’t forget: stick to your strategy, set a budget, and don’t chase losses or get greedy!
