Risks of Sports Arbitrage Betting and their Solutions
Theoretically Sports Arbitrage Betting is 100% Risk Free, only when it is done properly. Problems can arise when the trader does not have enough experience/knowledge about the business. In this article we try to list all the risks of sports arbitrage betting and provide solutions to it.
Simply speaking, we will show you how Sports Arbitrage Betting can really give you 100% Risk Free Profits.
No matter what anybody says, no form of betting is entirely risk free. Although it is safe to say that arbitrage betting is the safest form (in terms of risking your capital) of betting available. Most of the risks involved are down to human error.
All the risks of Sports Arbitrage Betting are listed below:
- Placing the Wrong Bet / Dawdling
- Differing Bookmaker Rules
- Stake Restrictions
- Odds Changing / Expiring
The vast majority of the risks associated with arbitrage betting can be eliminated through proper planning and preparation. However we will show you the exact solution to these problems.
Placing the Wrong Bet / Dawdling
Small accidents can cost a lot of money. Whenever you are in a rush when placing bets, you are at a risk of making a stupid mistake. For example, if you are betting on an over/under and at one bookmaker both over and under have the same odds. It is not uncommon to accidentally back the wrong option and end up with two bets on the same outcome! Rushing and making mistakes is a potential risk.
Also if you place one bet and then take too long to place the second bet, you may be too late to get the correct odds, or you might miss the second bet completely. Missing the second bet leaves you open to potentially losing that bet, but of course, it also leaves you open to potentially winning. Gambling is not the objective of sports arbitrage betting though, so this is a risk.
The simple solution to this problem is Paper Trading.
Please read full details about Paper Trading at our Sports Arbitrage Betting - Starter Guide.
Differing Bookmaker Rules
Different bookmakers have different rules for how to handle the outcome in the case of a draw, in the case of a pitcher changing before a baseball game, in the case of extra time in hockey, in the case of an incomplete game of tennis etc. There is a risk one bookmaker will return your money, and the other will act on the bet completely (paying you your winnings, or keeping your money if that bet lost). If there is a difference in rules and one bookmaker acts on the bet while the other simply returns your bet, then you have a 50-50 chance of winning and losing, so it isn’t all bad. But it is a risk nonetheless.
Bet Like with Like. Learn what rules each bookmaker uses with any sport you are going to bet on. When you have an arb between two bookmakers, make sure both bookmakers use the same rules and there will be no potential loss.
Some bookmakers might put a limit on how much you can stake on your bets. This is not exactly a risk associated with arbitrage betting, but will act as a bottleneck to your entire betting capabilities. You will not able to make good profits due to this restriction.
Using a Betting Exchange solves this problem.
The most popular and well-used betting exchanges are Betfair and BETDAQ. A betting exchange will place no restriction on successful punters. Therefore by placing half your bets with an exchange, you are reducing your potential exposure to bookmakers that may limit or restrict your account.
You can get complete details on Using a Betting Exchange at our Sports Arbitrage Betting - Starter Guide.
Odds Changing / Expiring
This is the most common problem faced in sports arbitrage betting, and everyone wants a solution for it.
Generally speaking, the longer you take to place the bet the more chance the odds will change or even expire. Ideally you need to be placing your bet as soon as you receive your sports arbitrage alert. Large amounts of money being placed very quickly on a particular event will shorten the odds so it is important to act as quickly as you can.
This problem can be avoided by placing the bets quickly, but there is no definite way to know when an odd is going to change or expire. Even the professional sports arbitrage traders face this problem sometimes.
Many traders use different methods to this resole this issue, but none of them can be considered safe and risk free. Only Arbets.com has the best solution which can rescue you from both changing and expiring odds.
The solution really lies in the selection of arbs which you wish to trade. To guard yourself from this problem, you have to chose multi-bookmaker arbs and place your stake as we suggest.
Multi-bookmaker arbs are those arbs which has arbitrage opportunity for the same match/event over several different bookmakers.
Example of one multi-bookmaker arb can be seen below:
|Tennis||Ana Ivanovic vs Daniela Hantuchova||The Greek (2.000) | William Hill (3.750)||30.43%||23-Jan-08 3:12 pm||89 mins|
|Tennis||Ana Ivanovic vs Daniela Hantuchova||The Greek (2.000) | Victor Chandler (3.750)||30.43%||23-Jan-08 3:12 pm||90 mins|
|Tennis||Ana Ivanovic vs Daniela Hantuchova||The Greek (2.000) | Paddy Power (3.750)||30.43%||23-Jan-08 3:12 pm||90 mins|
NOTE: This is a real example of an arb we found out on January 23, 2008. This arb alert was sent out to all our members.
This is a multi-bookmaker arb as the Tennis Match between Ana Ivanovic and Daniela Hantuchova provides three independent arbitrage opportunities. All the arbs originated at the same time and yields the same profit of 30.43%. The first arb lasted for 89 mins, while the other two lasted for 90 mins each.
The strategy here is to stake the volatile bet first and if it successfully done, you have to proceed placing the other bet.
In this example, the bet for Ana Ivanovic at The Greek (2.000) is the volatile bet. In all the three arbs, bet for Ana Ivanovic is only available at one particular bookmaker - The Greek. Risk of odds changing or expiring mainly occur in this arb, when the trader fails to bet for Ana Ivanovic, while the other bet is already placed.
To avoid this situation, you have to always place the volatile bet first. When this is confirmed, you have to proceed immediately to place the other bet.
In the example, Daniela Hantuchova should be the second bet. As this bet is available in three independent bookmakers, there is no risk of odds changing or expiring. If odd at any one bookmaker do get changed, you always have the other bookmakers where you can complete your bet.
This is the most efficient method to combat this problem.
Please see our past results at http://www.arbets.com/past_results/
The majority of arbs we find are multi-bookmaker arbs. Almost each arb have arbitrage opportunity for the same match/event over several different bookmakers. So you can expect to tackle the problem easily when you receive sports arbitrage betting alerts from us.
Inexperience in sports arbitrage trading is the major factor for existence of potential risks in this business. A majority of problems are faced only because of inexperience and lack of knowledge on the topic.
In order to move fast, you have to take it slow in the beginning and learn how to do it properly. You have to accept that there is a learning period.
In the beginning, you need to start ‘trading’ without actually betting real money. Find the arbs, go through the motions, pretend you are doing it but don’t actually bet anything. This is called ‘Paper trading’. This allows you to learn how the bookmakers work without risking your money, it builds experience. As you gain some experience you will navigate to the correct destination faster and place the correct bet more reliably.
With the basics under control you will need to progress past paper trading to real money in order to understand how the bet confirmation process takes place, and so trading with very small amounts is a necessary second step.
Further down you have to learn this like Triple Check Method and Managing Your Bankroll in order to establish yourself.
For this entire process, we have compiled our Sports Arbitrage Betting - Starter Guide, which will help you at all stages in gaining all the experience required. This article will explain how you can become a successful sports arbitrage trader and make those risk-free profits you always wished to, using your resources and our sports arbitrage betting alerts. So please go through this article completely, it will help you a lot.
The article can be reached at http://www.arbets.com/guide/sports-arbitrage-betting-starter-guide/
Sports Arbitrage Betting may seem difficult in the beginning, and the truth is it has a steep learning curve. But any legitimate opportunity to work at home and make a good profit at the same will always involve real work. Once you master the few basic principles and get some experience, you will very quickly improve.
The total learning process should take minimum 3 months, after which there will be no stopping to your risk free profits. But in the beginning, you have to take it slow!
The 5 Risks of Sports Arbitrage Betting kindly provided by SportsArbitrageGuide.com