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The Punting Ace Arbitrage Calculator
Index
Arbitrage Betting Overview
The PA Arb
Calculator
Setting the
style of the arb calculation
Entering the
arb amount
Entering the odds of
the selections
Reviewing
the bets and the arb result
Knowing when not to bet
Arbitrage Betting Overview
Arbitrage betting (or "arbing")
is a process whereby you are able to bet on all possible
outcomes of an event and to return a profit regardless
of the outcome. Arbitrage betting is most readily understood
when
backing two teams in a head-to-head contest but is also
possible where many different outcomes are possible. In this
simple context, if you are able to get more than $2.00
on each of the two teams from different bookmakers then
you have an arbitrage situation, or "arb" for short.
Naturally, it is not possible
to "arb" all the time, as you must wait until
the odds make this style of betting possible. Depending
upon the
event this may not happen regularly. Arbitrage betting
is normally conducted by obtaining odds across two or more
bookmakers.
There are three main ways in
which to structure an arb. These are :-
- To return a set amount regardless of
who wins,
- To return a given profit regardless
of who wins, or
- To outlay a set amount regardless
of who wins.
The most common form of Arbing
is option 2 followed by option 3.
1. Returning a set amount
In this case, the bet is structured to ensure that no
matter who wins, the same amount of money is returned from
that winner. In the case of betting to return $100, then
regardless of who wins, the payout from the winner is $100.
The overall profit in this case will be $100 less what
it costs to bet on all the selections in the race. You
may have bet $80 on all the selections, so your profit
is $20 in this instance.
2. Profit a set amount
In this case, the bet is structured to
ensure that no matter who wins, the bet produces a profit
of $100. You may need to bet $500 across all your selections,
in which case you will collect $600 regardless of who wins
to ensure a profit of $100. Alternatively you may bet $220
across all your selections to return $320, again for a
profit of $100.
3. Outlay a set amount
In this case, the bet is structured to
ensure that you bet $100 across all your selections. The
bets are scaled according to the odds so that you will
collect
essentially
the same amount regardless of who wins, but the bets are
structured to ensure you only outlay this set amount. If
it happens that you collect $160 then your profit will
be $60.
Bias bets
Although the more traditional form of arbing
is to make the same profit regardless of which outcome
eventuates, if you have an opinion about the outcome then
it is possible to structure your bet to make the maximum
profit if this particular outcome is the winner. In these
cases, the bet is structured so that all other outcomes
return the bet amount, resulting in a break-even situation.
Biasing an arb essentially provides you with a "free bet"
to maximise the profit if your favored outcome is the winner.
Next:
The Punting Ace Arb Calculator
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