Arbitrage betting explained – What is Arbing?

There is an equal possibility of winning or losing during any bet and a relatively lower probability of the match ending in a draw. But, let’s be honest, you don’t wish to lose. Plus, you did your research and placed that wager carefully, weighing all your possibilities. However, is it enough? Are you asking yourself, is there something more I can do to make my winning chances high? Well, if so, then you have landed on the right page. The answer is arbitrage betting. Don’t worry. We will cover what it means to its significance in the betting scene

What is Arbitrage Betting?

Arbitrage betting, also called “arbing,” in short, is a betting technique that guarantees profit by taking advantage of contrasting prices within and between markets. This trading method allows customers to make a generous profit regardless of the outcome. 

In this betting system, you get a chance to exploit the mathematical disparities in the odds by backing and laying the exact outcome of any given event. And the margin in between is known as “Arb.” Any punters who make use of this system are called “Arbers.” The term has been borrowed from the financial trading world. A common practice where the traders buy the stock at a specific price only to sell it at a higher rate than previous.

When placing this miracle bet always make sure the back has higher odds in contrast to the lay bet. It solely comes down to finding the right opportunities to be a successful Arber.

Back bet: Wager placed as in to back the outcome of that event; done through fixed-odds sportsbook.

Lay bet:  Wager placed, so that the outcome doesn’t happen; done by betting exchanges.

Furthermore, this seamless trading is excellent for the casual bettors who are looking to play safe. As, engaging in arbitrage betting prevents you from losing even if the profit margin is small.

How does Arb betting work?

Using arbitrage calculator is one of the many ways to calculate your stake. However, it is equally essential to understand how the betting works. Some examples are added in order to help illustrate the process.

Arb betting can be categorized in two types:

  1. Odds Arbitrage
  2. Bonus Arbitrage

Odds Arbitrage

In order to take benefit of the betting, you need to make sure the lay bet has lower odds than the Back bet.

In a hypothetical dart match between T. Bone and Rector. The bookmaker is providing you the following odds to back the players.

 T. BoneRectorMarket margin
Odds2.4 (41.67%)1.55 (64.52%)106%

In an exchange market, let’s suppose in Crickex betting exchange market you can lay the T Bone with odds, 2.1. And with the implied probability the combined market margin is 89.21%.

 T. Bone to win on bookmakerT bone not to win on Crickex bettingMarket margin
Odds2.4 (41.67%)2.1(47.62%)106%

Lay stake for the arbitrage betting.

If you bet £100 on T Bone to win with the bookmakers’ odd of 2.4. The lay stake in the Crickex betting exchange can be calculated as:

(Back price x Back stake) / (current lay odds – exchange commission)

In our case that will be
(2.4 x 100)/ (2.1 – 0.02) = £115.38

Now, £115.38 would be the lay bet you need to place on T. Bone not to win at the odds of 2.1 on the Crickex betting exchange.

At Bookmaker

If you win at bookmaker your profit is:

Profit = (back odds – 1) x back stake – (lay odds -1) x lay stake.

In our case,

(2.4 – 1) x 100 – (2.1 -1) x £115.38 = £13.08= Profit

At Exchange betting

If you win at bookmaker your profit is:

Profit = (lay stake x (1 – commission)) – bookmaker stake

In our case,

Profit = (£115.38 x (1-0.02)) -100 = £13.07= Profit.

Overall Profit by Arbitrage betting

As you can see regardless, T Bone wins or loses you make a total profit of £13.08 using both betting scene.

Bonus Arbitrage

This is also called matched betting, where you can utilize bonuses, free bets, and incentives provided by the bookmakers. The strategy is simple. All you have to do is place a bet with the bookmaker (offered incentive). After that, lay the same outcome on betting exchange.

Conclusion

Arbitrage betting or arbing offers you a win-win situation for bets you place. Until a bookmaker spots you. It is perfectly legal to apply this technique, though it can annoy bookmakers. 

Overall, the key to lucrative arbing is pinpointing the arb between the backing and laying a particular outcome in any marquee event. There is many software out there that can come in handy to help you with arb betting.

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