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What Is Sports Arbitrage

It started in England (now part of UK) and then it spread over to the colonies and stayed back as the freedom was won for the United States. Since then, betting has become more than just a leisure ti...

It started in England (now part of UK) and then it spread over to the colonies and stayed back as the freedom was won for the United States. Since then, betting has become more than just a leisure time activity. It has become a passion and addictions for many and some take it as a profession almost.

For the serious bettor, there are several factors constantly playing at each game and that makes it difficult to begin as a bettor whenever you want to. There are a lot of things your need to learn first. But once you are in full knowledge of what makes a bet a bet and all the different odds and how they are expressed and estimated, you are well on your way to becoming a pro.

One thing professionals always do is keeping a look out for new ways to make money. One of those ways is through sports arbitrage. This practice has been around since the first bookies started bookmaking. It has a fairly simple core concept and it is meant to make the betting situation absolutely safe for the bettor. It involves betting at multiple bettors with such widely varying odds in such a calculated manner that no matter what the outcome is, you stand to make a nice profit.

This is really a perfect situation for bettors where there is zero risk and guaranteed profit. The only short falls are the lower profit and the higher sum of money that is needed to make a decent enough profit. However, it has been a popular method of placing safe bets or sure bets since a long time back.

Here's a simple example from just a few years back. When Bush and Gore were competing, each had odds of about 6/4. So by betting $1000 on each one, you could rest assure of a 25% return on the bets no matter who won. So when Bush won, you would've gotten $2500 and that would've given you a nice $500 profit. So you have to invest higher but you will get an assured profit on it. This is a no-risk betting scenario and hence everybody wins.

However, you need to understand the odds for each outcome before you can decide to trade arbitrage, because not all situations are fit for it. You have to be on the look out for them and luckily many such opportunities arise each month in various places; especially in the financial market. So you have to keep a sharp eye out and do your calculations quickly to spot a possible arbitrage situation.

So even though a lot money can be made and is made from arbitrage trades every monthFree Web Content, you have to be very careful about the bets you place. You have to know exactly how much to stake and have to sure that an arbitrage trade is favorable.

Article Tags: Sports Arbitrage

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