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Arbitrage betting is essentially betting on situations where the probability that you are going to lose money is zero. So, you cannot lose money through an arbitrage bet.
Some might think that this is impossible. It takes a bit of thinking and effort, but it is not impossible, because the opportunities do present themselves.
This is what we are going to cover in this article, as well as how you can make the most out of arbitrage betting through betting exchanges, especially if you access them via the Brokerstorm betting broker.
How does arbitrage betting work?
When you go online on two different bookmaker websites, the odds of a particular event usually they vary slightly between different bookmakers depending on what the bookmaker thinks is going to happen. Arbitrage betting is using the difference in odds different betting sites to find the best possible deal for one event to happen and then finding the best possible deal for the opposite event to happen using that difference in odds across platforms. This way bets are wagered both ways on the same event, and, no matter what, there is a sure profit.
Let’s take an example of a tennis match. When you’re looking at online betting sites, you find the match Roger Federer vs Nick Kyrgios. On one site you’ve got Roger Federer to win at 1.30 EUROS and on the other site you’ve got Roger Federer to win at 1.42 EUROS. So there are differences. Then you look at the flipside; on one betting site you’ve got Kyrgios to win at 3.93 EUROS and on the other betting site you’ve got Kyrgios to win at 2.90 EUROS.
If you have a look at the sites individually, you’ve got site one – Roger Federer 1.30 / Kyrgios 3.93, which means that this bookie thinks that Roger Federer is going to easily beat Kyrgios whereas on betting site two they think it’s going to be a closer game; they’ve got Roger Federer at 1.42 and Nick Kyrgios at 2.90 EUROS.
Betting Odds Margin
What the betting odds margin actually deals with is that it looks at all the possible outcomes and the odds for each, and it works out in total for that event what profit margin is the bookmaker taking. This is the formula you use to work that out for an event with two possible outcomes.
Betting Odds Margin = [1/odds of outcome A + 1/odds of outcome B] x 100
So, what you basically do with this formula is take into account the odds of the first outcome happening and the odds of the second outcome happening and working out overall what sort of payday is the bookmaker giving themselves.
Bookmaker 1 = [1/1.30 = 1/3.93] x 100 = 102.37% [2.37% profit margin]
Bookmaker 2 = [1/1.42 = 1/2.90] x 100 = 104.91% [4.91% profit margin]
What we observe taking a look from both bookmakers individually is that the number we get out of the formula is always going to be over 100%, because this is how the bookmakers are making their money. In order to have an arbitrage opportunity, you need to find a total number of below 100.
So how does this happen?
Federer vs Kyrgios example
What we are going to do in order to have an arbitrage opportunity is take the best odds from both bookmakers. We are going to take Federer to win at 1.42 from the Bookmaker 2 and then we are going to take Kyrgios to win at 3.93 from bookmaker 1. If we enter those numbers into our formula, we get 95.87% profit margin. This 4.13% margin is going to us.
Arbitrage opportunity = [1/1.42 + 1/3.93] x 100 = 95.87% profit margin [4.13% profit margin for us]
If we place an unbiased arbitrage and we do not change our bet amount depending on who we think is going to win, we are going to make 4.13% profit. The next step when we find an arbitrage opportunity is to open up the arbitrage calculator to figure out how much we need to bet both ways so that we can make the same amount of money regardless of the outcome.
If we have 100 EUROS in total to bet, the arbitrage betting calculator has figured out that the way we should do it is that 73.46 EUROS for Federer to win at 1.42 on bookmaker 2 and then bet the other way; bet 26.54 EUROS on Kyrgios to win at 3.93 EUROS on bookmaker 1. This means that whoever wins, we are going to make 4.31 EUROS because it was an arbitrage opportunity. The betting odds margin told us that it was an arbitrage opportunity. Therefore, if we treat it as unbiased arbitrage we are destined to make money from placing these bets.
So this is basically arbitrage betting and how it works on any traditional bookmaker. Arbitrage opportunities, though, can be more easily found on betting exchanges, because the odds are better on betting exchanges and there is also the lay bet feature.
Arbitrage opportunities on Betting Exchanges
Betting Exchanges, such as Betfair which is the most popular online betting exchange worldwide, are platforms where users can bet against one another using both back and lay bets. Similar to traditional bookmakers they can back an outcome or they can lay bet against an outcome and act as a bookmaker. The odds on betting exchanges are not determined by the platform, but by the users themselves, depending on the supply and demand. As a result, arbitrage opportunities are often found because of these differences between the odds set by users who have varying opinions on the outcome of an event.
Bookmakers make their money by the percentage margin profit out of every event. Arbitrage betting taking advantage of margins below 100% basically threatens the profitability of the bookmakers and for this reason, arbers are often banned or limited by the traditional bookmakers. Betting exchanges, on the other hand, welcome arbitrage bettors, because they do not have a direct interest in the outcome of events. Their profit comes from the commission rate charged on every winning bet. As the odds are user-generated on betting exchanges, liquidity (the amount of money available for betting) can vary, which may impact the size of bets that a player can place.
Some may argue that arbitrage betting on betting exchanges is a complex deal, and it might be so, but nevertheless, on liquid betting exchanges it is worth a bit more effort, as the odds are way better and the opportunities greater.
How to arb on betting exchanges
Search for Arbitrage Opportunities
Select a specific event and start monitoring the odds. Look for differences where the back odds are significantly lower than the lay odds.
Calculate the amount of the Stake
Once the arbitrage opportunity is found, calculate the appropriate stake amount for each outcome in order to ensure the guaranteed margin profit. Use an arbitrage calculator, taking into account the odds and the potential profit.
Place Back Bets
First, place back bets on all possible outcomes of the event, using the favorable odds you have found and the respective amount of stake you have calculated.
Place Lay Bets
Now you need to cover your back bets by placing lay bets with other users of the betting exchange who offer competitive odds. Why do you need to that? Well, the lay bets will act as insurance, making sure you win regardless the outcome of the event. This way you can place unbiased arbitrage bets and always make money.
Confirm the bets and wait
On betting exchanges once the bets are placed they need to be confirmed by another player and form a bet match. Once the match is formed, then wait for the event to finish. In the end, you will see that no matter what, you will have secured a profit, because your back and lay bets will cancel each other out, with the margin percentage coming out of the difference between the odds being your profit.
Withdraw your winnings
Betting exchanges charge a commission rate on all winning bets, therefore you need to calculate this factor too in order to figure out your net profits. Even charged with a commission fee that reduces your overall profit, you will still find that it is lower than the margin built into bookmaker odds.
Betfair Exchange availability and limitations
Although Betfair is the world leader when it comes to betting exchanges, it is not accessible by everyone, because of strict international legislative reasons. To mitigate this geo-restrictive issue and help players from all around the globe have a taste of the Betfair experience, Betfair allowed the creation of white label platforms that will operate under the same basic principles as Betfair using the same software and sharing the same markets, odds, and liquidity.
The most popular Betfair alternative platforms are Orbit Exchange and Winfair24.
Arbing with Betfair alternatives
As we said, the Orbit Exchange and Winfair24 betting platforms were created as Betfair clones for players wishing to place bets on Betfair but cannot, because they reside in a country where Betfair does not operate.
Although closely affiliated with Betfair, they are both entirely separate entities.
They share the same markets, odds and liquidity with Betfair and they differ on the commission rate charged on winning bets and the interface.
On both platforms players can enjoy a wide array of sports and other events, from soccer, cricket and tennis to MMA, snooker and politics. They can also elevate their arbitrage experience through various features, such as in-play betting and cash out option.
Find Arbitrage opportunities on Orbit Exchange and Winfair24
If you want get started with arbing on Orbit Exchange and Winfair24 here’s what you need to do
Register and Verify
Create your accounts and complete all necessary steps of the verification process.
Deposit Funds
Put money into your accounts in order to be able to place your bets.
Keep up with the Odds
On betting exchanges the odds are changing rapidly, so you need to keep a close eye on the odds for the events and markets you are interested in. As soon as you track the differences in odds between backing and laying on the same event, you have your arbitrage opportunity and you need to be very quick in placing the bets and securing your profits.
Use Arbitrage Tools
A key to successful arbitrage is quickly tracking and taking advantage of the opportunities. Therefore the use of software tracking those opportunities scanning multiple platforms simultaneously can be very beneficial. Arbitrage calculators are also necessary in order to find out quickly the right amount of stake for your bets to lock your guaranteed profit.
Use the platforms to cancel out your bets
Use both platforms to place back bets on the one and lay bets on the other, making sure you follow the rules of each.
Monitor your Bets
Keep monitoring your bets until the event is finished. This way you follow up in case the odds are changed in a way that affects your arbitrage opportunity. Make wise use also of the cash out option.
Stay Discreet
Although betting exchanges do not easily limit or ban arbitrage bettors, it is always best to keep a low profile and not draw attention to your strategies.
Manage your Bankroll
Always be “sober” in your decision making and make sure you have sufficient bankroll to cover your bets and any potential losses.
Understand the Risks
Arbitrage betting can lead to long-term guaranteed profits, but what every bettor needs to understand is that it is not risk free. Always be prepared for potential losses due to unexpected events or changes in the odds.
Find a trustworthy broker
Direct access to both platforms is not possible and it can be done via a betting broker. Betting brokers are responsible for granting access to the betting exchanges, managing the players’ accounts; settle their funding and withdrawing requests and offering customer support service to address the players’ queries. Finding, thus, a reliable broker is of paramount importance.
Brokerstorm: Your trusted arbing ally
Brokerstorm is a broker that offers access to various betting exchanges and Asian bookies, including Orbit Exchange and Winfair24. With Brokerstorm the players can have access to as many platforms as they wish with a single account. This is extremely useful for arbitrage betting as it eliminates the drug of having to keep multiple accounts on different bookies.
Brokerstorm is one of the most dependable online betting brokers in the industry, because it goes beyond merely facilitation account setups and management. Brokerstorm is an ardent supporter of responsible betting both for recreational and professional purposes, and it strives to ensure a seamless betting experience. It is within its philosophy that no bet is too small or too big, and it welcomes all types of bettors, especially arbers. Registering with Brokerstorm players can have a steadfast ally always ensuring security and trust. They will always have a dedicated agent addressing to every issue or query might come up, with multiple contact channels, such as email, live chat, Skype, Messanger and Telegram. They can use flexible payment methods, from traditional bank transfers to instant anonymous and decentralized crypto transactions. They can rest assured their funds are protected at maximum and their honest winnings are always paid in full.
Brokerstorm is every player’s enduring partner, elevating their betting journey to the highest level by offering top notch betting platforms as well as access to high quality information and tools. Brokerstorm is partner with OddStorm where players can find all they need to know about sports events and markets, betting strategies, odds comparison as well as calculating and other necessary tools to apply their betting strategies. OddStorm offers Sure Bets as well as Live, Prematch and Asian Lines.
Check out more https://www.oddstorm.com/
Arbitrage players wishing to arb bets with Betfair they can benefit from multiple powered by Betfair betting exchanges Brokerstorm offers and use them to arb with Betfair. Since they have indirect access to Betfair odds they can always find great arbitrage opportunities with a single account.
Register with Brokerstorm Now https://brokerstorm.com/register
Combine top Betfair alternative exchanges with top Odds Comparison providers and top-quality brokerage services and get the ultimate advantage to turn your betting to a long term profitable investment.
Conclusion
Arbitrage betting is a betting strategy that involves identifying arbitrage opportunities and acting on them, and it can be very profitable on betting exchanges, such as Orbit Exchange and Winfair24. However, it takes planning, quick reflexes and a good grasp of the process. Brokerstorm can be a trusted ally to any arbitrage player as it promotes responsible, and secure betting, as well it offers access to multiple exchanges and asian bookies with only one account. It also offers access to OddStorm where players can compare odds between different bookmakers, and use tools that will help them make the most out of their strategy. Arbitrage betting although not risk free, with skill and discipline, while being backed by top-quality brokers such as Brokerstorm, it can surely be a valuable source of income and an exciting betting journey.
Some might think that this is impossible. It takes a bit of thinking and effort, but it is not impossible, because the opportunities do present themselves.
This is what we are going to cover in this article, as well as how you can make the most out of arbitrage betting through betting exchanges, especially if you access them via the Brokerstorm betting broker.
How does arbitrage betting work?
When you go online on two different bookmaker websites, the odds of a particular event usually they vary slightly between different bookmakers depending on what the bookmaker thinks is going to happen. Arbitrage betting is using the difference in odds different betting sites to find the best possible deal for one event to happen and then finding the best possible deal for the opposite event to happen using that difference in odds across platforms. This way bets are wagered both ways on the same event, and, no matter what, there is a sure profit.
Let’s take an example of a tennis match. When you’re looking at online betting sites, you find the match Roger Federer vs Nick Kyrgios. On one site you’ve got Roger Federer to win at 1.30 EUROS and on the other site you’ve got Roger Federer to win at 1.42 EUROS. So there are differences. Then you look at the flipside; on one betting site you’ve got Kyrgios to win at 3.93 EUROS and on the other betting site you’ve got Kyrgios to win at 2.90 EUROS.
If you have a look at the sites individually, you’ve got site one – Roger Federer 1.30 / Kyrgios 3.93, which means that this bookie thinks that Roger Federer is going to easily beat Kyrgios whereas on betting site two they think it’s going to be a closer game; they’ve got Roger Federer at 1.42 and Nick Kyrgios at 2.90 EUROS.
Betting Odds Margin
What the betting odds margin actually deals with is that it looks at all the possible outcomes and the odds for each, and it works out in total for that event what profit margin is the bookmaker taking. This is the formula you use to work that out for an event with two possible outcomes.
Betting Odds Margin = [1/odds of outcome A + 1/odds of outcome B] x 100
So, what you basically do with this formula is take into account the odds of the first outcome happening and the odds of the second outcome happening and working out overall what sort of payday is the bookmaker giving themselves.
Bookmaker 1 = [1/1.30 = 1/3.93] x 100 = 102.37% [2.37% profit margin]
Bookmaker 2 = [1/1.42 = 1/2.90] x 100 = 104.91% [4.91% profit margin]
What we observe taking a look from both bookmakers individually is that the number we get out of the formula is always going to be over 100%, because this is how the bookmakers are making their money. In order to have an arbitrage opportunity, you need to find a total number of below 100.
So how does this happen?
Federer vs Kyrgios example
What we are going to do in order to have an arbitrage opportunity is take the best odds from both bookmakers. We are going to take Federer to win at 1.42 from the Bookmaker 2 and then we are going to take Kyrgios to win at 3.93 from bookmaker 1. If we enter those numbers into our formula, we get 95.87% profit margin. This 4.13% margin is going to us.
Arbitrage opportunity = [1/1.42 + 1/3.93] x 100 = 95.87% profit margin [4.13% profit margin for us]
If we place an unbiased arbitrage and we do not change our bet amount depending on who we think is going to win, we are going to make 4.13% profit. The next step when we find an arbitrage opportunity is to open up the arbitrage calculator to figure out how much we need to bet both ways so that we can make the same amount of money regardless of the outcome.
Arbitrage Betting Possible Outcomes
Bet selection & Profit | Unbiased Arbitrage Strategy |
Wager 1 | 73.46 EUR |
Wager 2 | 26.54 EUR |
Profit if wager 1 wins | 4.31 EUR |
Profit is wager 2 wins | 4.30 EUR |
If we have 100 EUROS in total to bet, the arbitrage betting calculator has figured out that the way we should do it is that 73.46 EUROS for Federer to win at 1.42 on bookmaker 2 and then bet the other way; bet 26.54 EUROS on Kyrgios to win at 3.93 EUROS on bookmaker 1. This means that whoever wins, we are going to make 4.31 EUROS because it was an arbitrage opportunity. The betting odds margin told us that it was an arbitrage opportunity. Therefore, if we treat it as unbiased arbitrage we are destined to make money from placing these bets.
So this is basically arbitrage betting and how it works on any traditional bookmaker. Arbitrage opportunities, though, can be more easily found on betting exchanges, because the odds are better on betting exchanges and there is also the lay bet feature.
Arbitrage opportunities on Betting Exchanges
Betting Exchanges, such as Betfair which is the most popular online betting exchange worldwide, are platforms where users can bet against one another using both back and lay bets. Similar to traditional bookmakers they can back an outcome or they can lay bet against an outcome and act as a bookmaker. The odds on betting exchanges are not determined by the platform, but by the users themselves, depending on the supply and demand. As a result, arbitrage opportunities are often found because of these differences between the odds set by users who have varying opinions on the outcome of an event.
Bookmakers make their money by the percentage margin profit out of every event. Arbitrage betting taking advantage of margins below 100% basically threatens the profitability of the bookmakers and for this reason, arbers are often banned or limited by the traditional bookmakers. Betting exchanges, on the other hand, welcome arbitrage bettors, because they do not have a direct interest in the outcome of events. Their profit comes from the commission rate charged on every winning bet. As the odds are user-generated on betting exchanges, liquidity (the amount of money available for betting) can vary, which may impact the size of bets that a player can place.
Some may argue that arbitrage betting on betting exchanges is a complex deal, and it might be so, but nevertheless, on liquid betting exchanges it is worth a bit more effort, as the odds are way better and the opportunities greater.
How to arb on betting exchanges
Search for Arbitrage Opportunities
Select a specific event and start monitoring the odds. Look for differences where the back odds are significantly lower than the lay odds.
Calculate the amount of the Stake
Once the arbitrage opportunity is found, calculate the appropriate stake amount for each outcome in order to ensure the guaranteed margin profit. Use an arbitrage calculator, taking into account the odds and the potential profit.
Place Back Bets
First, place back bets on all possible outcomes of the event, using the favorable odds you have found and the respective amount of stake you have calculated.
Place Lay Bets
Now you need to cover your back bets by placing lay bets with other users of the betting exchange who offer competitive odds. Why do you need to that? Well, the lay bets will act as insurance, making sure you win regardless the outcome of the event. This way you can place unbiased arbitrage bets and always make money.
Confirm the bets and wait
On betting exchanges once the bets are placed they need to be confirmed by another player and form a bet match. Once the match is formed, then wait for the event to finish. In the end, you will see that no matter what, you will have secured a profit, because your back and lay bets will cancel each other out, with the margin percentage coming out of the difference between the odds being your profit.
Withdraw your winnings
Betting exchanges charge a commission rate on all winning bets, therefore you need to calculate this factor too in order to figure out your net profits. Even charged with a commission fee that reduces your overall profit, you will still find that it is lower than the margin built into bookmaker odds.
Betfair Exchange availability and limitations
Although Betfair is the world leader when it comes to betting exchanges, it is not accessible by everyone, because of strict international legislative reasons. To mitigate this geo-restrictive issue and help players from all around the globe have a taste of the Betfair experience, Betfair allowed the creation of white label platforms that will operate under the same basic principles as Betfair using the same software and sharing the same markets, odds, and liquidity.
The most popular Betfair alternative platforms are Orbit Exchange and Winfair24.
Arbing with Betfair alternatives
As we said, the Orbit Exchange and Winfair24 betting platforms were created as Betfair clones for players wishing to place bets on Betfair but cannot, because they reside in a country where Betfair does not operate.
Although closely affiliated with Betfair, they are both entirely separate entities.
They share the same markets, odds and liquidity with Betfair and they differ on the commission rate charged on winning bets and the interface.
On both platforms players can enjoy a wide array of sports and other events, from soccer, cricket and tennis to MMA, snooker and politics. They can also elevate their arbitrage experience through various features, such as in-play betting and cash out option.
Find Arbitrage opportunities on Orbit Exchange and Winfair24
If you want get started with arbing on Orbit Exchange and Winfair24 here’s what you need to do
Register and Verify
Create your accounts and complete all necessary steps of the verification process.
Deposit Funds
Put money into your accounts in order to be able to place your bets.
Keep up with the Odds
On betting exchanges the odds are changing rapidly, so you need to keep a close eye on the odds for the events and markets you are interested in. As soon as you track the differences in odds between backing and laying on the same event, you have your arbitrage opportunity and you need to be very quick in placing the bets and securing your profits.
Use Arbitrage Tools
A key to successful arbitrage is quickly tracking and taking advantage of the opportunities. Therefore the use of software tracking those opportunities scanning multiple platforms simultaneously can be very beneficial. Arbitrage calculators are also necessary in order to find out quickly the right amount of stake for your bets to lock your guaranteed profit.
Use the platforms to cancel out your bets
Use both platforms to place back bets on the one and lay bets on the other, making sure you follow the rules of each.
Monitor your Bets
Keep monitoring your bets until the event is finished. This way you follow up in case the odds are changed in a way that affects your arbitrage opportunity. Make wise use also of the cash out option.
Stay Discreet
Although betting exchanges do not easily limit or ban arbitrage bettors, it is always best to keep a low profile and not draw attention to your strategies.
Manage your Bankroll
Always be “sober” in your decision making and make sure you have sufficient bankroll to cover your bets and any potential losses.
Understand the Risks
Arbitrage betting can lead to long-term guaranteed profits, but what every bettor needs to understand is that it is not risk free. Always be prepared for potential losses due to unexpected events or changes in the odds.
Find a trustworthy broker
Direct access to both platforms is not possible and it can be done via a betting broker. Betting brokers are responsible for granting access to the betting exchanges, managing the players’ accounts; settle their funding and withdrawing requests and offering customer support service to address the players’ queries. Finding, thus, a reliable broker is of paramount importance.
Brokerstorm: Your trusted arbing ally
Brokerstorm is a broker that offers access to various betting exchanges and Asian bookies, including Orbit Exchange and Winfair24. With Brokerstorm the players can have access to as many platforms as they wish with a single account. This is extremely useful for arbitrage betting as it eliminates the drug of having to keep multiple accounts on different bookies.
Brokerstorm is one of the most dependable online betting brokers in the industry, because it goes beyond merely facilitation account setups and management. Brokerstorm is an ardent supporter of responsible betting both for recreational and professional purposes, and it strives to ensure a seamless betting experience. It is within its philosophy that no bet is too small or too big, and it welcomes all types of bettors, especially arbers. Registering with Brokerstorm players can have a steadfast ally always ensuring security and trust. They will always have a dedicated agent addressing to every issue or query might come up, with multiple contact channels, such as email, live chat, Skype, Messanger and Telegram. They can use flexible payment methods, from traditional bank transfers to instant anonymous and decentralized crypto transactions. They can rest assured their funds are protected at maximum and their honest winnings are always paid in full.
Brokerstorm is every player’s enduring partner, elevating their betting journey to the highest level by offering top notch betting platforms as well as access to high quality information and tools. Brokerstorm is partner with OddStorm where players can find all they need to know about sports events and markets, betting strategies, odds comparison as well as calculating and other necessary tools to apply their betting strategies. OddStorm offers Sure Bets as well as Live, Prematch and Asian Lines.
Check out more https://www.oddstorm.com/
Arbitrage players wishing to arb bets with Betfair they can benefit from multiple powered by Betfair betting exchanges Brokerstorm offers and use them to arb with Betfair. Since they have indirect access to Betfair odds they can always find great arbitrage opportunities with a single account.
Register with Brokerstorm Now https://brokerstorm.com/register
Combine top Betfair alternative exchanges with top Odds Comparison providers and top-quality brokerage services and get the ultimate advantage to turn your betting to a long term profitable investment.
Conclusion
Arbitrage betting is a betting strategy that involves identifying arbitrage opportunities and acting on them, and it can be very profitable on betting exchanges, such as Orbit Exchange and Winfair24. However, it takes planning, quick reflexes and a good grasp of the process. Brokerstorm can be a trusted ally to any arbitrage player as it promotes responsible, and secure betting, as well it offers access to multiple exchanges and asian bookies with only one account. It also offers access to OddStorm where players can compare odds between different bookmakers, and use tools that will help them make the most out of their strategy. Arbitrage betting although not risk free, with skill and discipline, while being backed by top-quality brokers such as Brokerstorm, it can surely be a valuable source of income and an exciting betting journey.
