Sports Arbitrage: Is It Really ?Risk-Free?? - Kids Nike Free Run 2

by Lucy Mr lucys

Although the term, arbitrage, is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives and currencies, it can also be used in the world of sports betting Nike Kukini Free. Today, there are many internet bookmakers who offer odds on the outcome of the same event.

Each bookmaker weighs their odds so that no one customer can cover all outcomes at a profit against their books Air Free Run+ Couple Mens. However, in order to remain competitive their margins are usually fairly low.

Different bookmakers may offer different odds on the same outcome of a given event; by taking the best odds offered by each bookmaker, a customer can under some circumstances cover all possible outcomes of the event and assure that they receive a small risk-free profit Kids Nike Free Run 2. This profit would typically be between 1% and 5% but can be much higher.

It seems too good to be true, right Well, no form of gambling is entirely risk-free Air Presto+ 4 Womens. Despite the fact that it is often advertised as risk-free profit, there are a lot problems associated with arbitrage betting.

The majority of arbitrage opportunities are limited to only a few per cent at best which wouldn't be a problem if the customer were allowed to bet as much as he wants, but bookmakers often limit maximum bets. Another problem is that there are often deposit and withdrawal costs which have the potential to negate any profit that may have been made. Postponed sporting events can also cause problems because some bookmakers will cancel the bet, thus the customer may end up only having money on one side of the bet.The constantly changing prices that can occur probably cause the biggest problems, especially for beginnings. An 'arb' usually last for less than an hour and typically only a few minutes.

Sponsor Ads

• Ad Space Available - Rent it Now!

Created on Dec 31st 1969 18:00. Viewed 0 times.

Comments