In simple words, arbitrage means a system in sports betting that will make money no matter the outcome of the event you are betting on. This will be done by using different bookmaker’s different opinions on which bets will be the most profitable.
Sports arbitrage are done to make a profit regardless of the outcome of the event. By placing bets on all possible outcomes with different bookmakers, the bettor can make a profit.
Certainly, in the short term, betting on all possible outcomes may sometimes be a quick cash cow. However, there are no guarantees that you can be guaranteed a win. This is the reason why the long term is much more important in this type of activity.
TheFactors You Need To Consider In Arbitrage Betting
There are several factors that you need to take into account when performing arbitrage betting. Given below are a few of the important ones:
It is essential to learn how to manage your money and prevent yourself from betting more than you can afford. In sports betting, this is more applicable in cases when you are placing multiple bets.
Certain types of arbitrage require you to hedge your bets. This will prevent you from profiting from a winning bet, if the odds on a particular bet are improved with a bookmaker. Although you are advised to rarely use this, it is still a necessary security measure to take.
The markets in sports betting are very complex. Bookmakers often disagree with each other’s odds, and this can lead to frequent losses. It is best to place your bets on those bookmakers that offer a wider market.
Risk Capital and Bankroll
Many inexperienced bettors often make the mistake of betting with an amount they can ill afford. As a rule of thumb, you should never bet more than 2% of your total bankroll on any bet. As much as possible, never bet more than 5% of your bankroll on any bet.
The simplest way to describe this concept is to say that 5% is the upper limit on what you are willing to bet in terms of risk capital. When you are capped, you should never bet more than 5% of your bankroll on any event.
This is a very important concept, because if you consistently lose with a given amount of risk capital, then you have a dangerous addiction and it should be treated as such.
Your bankroll is the amount of money you have to bet with, and nothing else. Usually, it is the amount of money you have to pay the rent or mortgage payment. It should be an amount you are willing to lose, because it is the money you will always need before you can think about earning again.
It is important to always have at least 20 buy-ins, in case something goes wrong. 20 buy-ins makes it easier to recover from a bad beat.
When your bankroll grows to more than 20 buy-ins, you need to make some goals. You should either wait for the game to reach your bankroll, or you should move up a level.
For example, your bankroll reaches $150. This is a nice figure, but wouldn’t you feel better if you were constantly climbing up to $200 or $300? This emotional mistake is what causes many bettors to fail. As their bankroll gets bigger, chances increase that they will lose it all to a bad beat.
Your bankroll grows to $300. Almost a year later, you bust out due to a bad beat. You decide to move down a level to $200. The next time you lose, you have to move down once again. This time, you lose $200. You move back up because you decide it’s not worth it anymore.
Your bankroll grows to $600. You bust out once again. You decide to move back up to $100 because you are skeptical that you will lose again. Once again, you lose. You move down a level again.
Your bankroll grows to $1000. One more bad beat and you bust out. You spend a few days of trying to fix the bad beat. After several more bad beats, you decide that it’s not worth it anymore and you move down a level.
Your bankroll grows to $2000.One bad beat and you bust out. You move back up because you think it’s about time you quit gambling for good.
Your bankroll grows to $500.Another bad beat and you move down a level. You win a hand and you move up a level. You win a hand and you move down a level. You win a hand and you move up a level.