Arbitrage betting is a practice that involves placing of bets on all sides in a single event. The wagers are made with the perfect combination of stakes and odds that will result in a profit regardless of the event’s outcome. It is commonly referred to as ‘sure betting’. The principle behind it is having minimum risks and guaranteed profits in the long run. Despite its apparent rewards, the number of arbitrageurs across the world is very low. Automated arbitrage service providers have very few subscribers. Why are only a small number of customers taking advantage of these ‘guaranteed profits’?
Is Arbitrage Legal?
Arbitrage betting is completely legal. An ‘arber’ simply exploits the existing price differences in the market. He effectively buys and sells (surebets) just like any other trader. However, bookmakers aren’t fond of arbers. A company has the prerogative to decide who it wishes to have as customers. Bookmakers usually prohibit arbers from booking. Whenever suspicion arises, they limit or close bookmaker accounts.
High Capital Requirements
Successful arbitrage betting requires sacrificing large funds in order to ultimately achieve small guaranteed returns. Pursuing average profit levels of 2.5%-7.5% per betting round may target a return of between 15% and 25% of the total monthly capital. Therefore, an arber will need a minimum starting bank of $5,000 to make a monthly profit of $1,000-$2500. From this, it is evident that a huge sum of money is necessary to make the venture worthwhile.
In addition to huge funds, arbitrage betting requires great experience and strong personal characteristics. This is because an arber has to perform many time-consuming calculations. He also needs to keep clear records of every transaction. The practice involves a high level of discipline and consistency. Due to this, arbers end up leading unsocial lives. Lastly, a fast, stable and reliable internet connection is absolutely essential for success to be achieved.
Cost and Effectiveness
As much as arbitrage betting is described as being risk free, it is not completely free of risk. In case one betting round goes wrong, it can cost profits of about 20 successful ‘arbs’. For this reason, a maximum of 5% of the capital should be used in a single arb. Therefore, with our previous working capital of $25,000, approximately $1,000 should be employed per arb. This in turn will earn $20-$35 each time.
To achieve a monthly target profit level of $5,000, approximately 250 successful trades are needed. Assuming each month has 20 working days, 12 trades will be required to be done in a single day, including monitoring, accounting and recording. Professional arbitraging is therefore a full-time occupation. Attaining significant arbitrage profits takes several years of gaining knowledge and experience.
Arbitrage transactions have a comparatively small market place. Majority of bookies do not want individuals engaging in this type of betting as customers. Arbitrage can be described as the act of pursuing a legal occupation but being permanently treated like an unwanted customer. The potential income is also limited due to betting bank size, bookmaker stake limits, time constrictions and personal capacity among others. With arbitrage betting explained above, you can now decide whether it is the best use of your time and talents. If you decide to make money while sitting at home then it will be a “surebet“.
There is also a new way to use Arbitrage betting, visit “www.brainkomst.se/skattefri-inkomst” to find out how to use it.