Arbitrage is the technique of trading that guarantees a profit without taking any risk. In finance theory, an arbitrage is a "free lunch" - a transaction that makes a profit without a risk. More formally, a transaction is said to be an arbitrage if it costs nothing to implement, has a positive probability of a positive payoff, and a zero probability of a negative payoff.
Arbitrage trading is a technique used by professionals in financial markets whereby exactly offsetting positions are taken in a market simultaneously but at different prices. The difference in price represents an immediate risk-free profit that is independent of the subsequent movement in price of the instruments traded.

An example of this would be if IBM is traded on the London Stock Exchange for $10.00 and on the New York Stock Exchange for $9.50. An investor known as an arbitrageur could guarantee a profit by buying shares on the New York Stock Exchange for $9.50 and simultaneously selling the same amount of shares on the London Stock Exchange for $10.

The challenges with arbitrage trading are the tedious and time consuming tasks of searching for the arbs and then calculating the profits.

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What is Sports Arbitrage?

Sports Arbitrage trading is not to be confused with gambling. Whereas gambling involves a risk, sports arbitrage trading is using the market in such a way that a risk-free-profit can be generated on the outcome of an event.

If you were to bet both sides of an event at one bookmaker, you would lose one bet and win the other. The bookmaker would love you because you would lose a little bit more than you would win. This is always the case because the potential loss is always a larger amount than the potential winnings on a particular game with one bookmaker. The difference in the amount loss and the amount won is called the juice, which is where the bookmakers make their money. When a bookmaker gets too much action on one side of a bet, they will adjust the line to encourage action on the other side. This is why different bookmakers may offer different lines. When you can bet both sides of an event using two different bookmakers, you can sometimes find a situation where you stand to make a profit regardless of which side wins, which is called an arbitrage.

Arbitrage, or "arbing" as it's commonly called in sports betting circles, is the practice of taking advantage of a state of imbalance between two (or more) markets and backing every outcome at different prices to ensure an immediate risk-free profit. With the introduction of the Internet, advancements in technology and an ever-increasing number of bookmakers and betting exchanges, the potential for profitable arbing has never been greater.

Here is a sports arbitrage example from the pre-internet era. Suppose a London team was playing a Paris team. In London, more people were betting for the London team, so that if you bet on Paris and won, every $100 would bring you $110. Whereas in Paris, if you bet on London and won, every $100 again would bring you $110. A sports bettor might notice this, and so with the help of a friend and a long distance call, he might bet $1000 on London in Paris, and $1000 on Paris in London. At the end of the game, one of the bets is won and one is lost, but irrespective which one comes through, he will realize a profit of $1100 - $1000 = $100.

Calculating how much money to stake on each selection is a vital part of the sports arbitrage process. If you don't stake your money proportionately you won't guarantee an even return no matter which selection wins.

You'll only ever have one bet that wins - because only one selection can win an event. So one or more of your bets on each will lose. But the point is that the one winning bet recoups all your other stakes plus a small percentage profit!

You can either scour the net or subscribe to or  to be alerted automatically of  the arbs opportunities.

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How much income can I make?

This really depends on the amount of time and of money one has to spread among the bookmakers. Typically the arbs range from 1% to more than 10% and from time to time arbs will come in around 5%.  

A reasonable return on a typical arbitrage is around 2% to 5%. Very large arbitrages are best left untouched because things that look too good to be true, often are.

Before any money can be made at all, the user will need to fund his/her account so that funds can be distributed among the bookmakers. It is not recommended to trade more than $1,000 with each bookmaker otherwise they may see you as a syndicate and syndicates tend to wipe bookies clean. However you can place as many $1,000 trades as you like throughout the day with different bookmakers to maximize your trading profits. Trading results will vary with the individual. Money is paid out directly back to your account within 1 to 24 hours after the sporting event. You can then recycle your profits and trade on yet another sporting event.

As an Arbitrage trader, you work your own hours and with your own money on your PC. There is no advertising and no  products to stock or sell. You don’t need employees or to communicate with people. It's just you, an Internet connection and a computer with the correct tools. That's all you need to generate income in the world's largest online industry.

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Why do I need Arbulator 3.1?

While SureBetPRO is designed to provide the most efficient online arb alerts, it can't handle changing odds and lacks the functionalities to assist the arbitrage trader before and during the trading process to make and record speedy and accurate decisions.

Arbulator was developed after an exhaustive search for a similar tool which turned up nothing adequate.

Arbulator 3.1 is designed to:

In short, Arbulator 3.1 can help the trader to make quick decision to tweak and enter safe and profitable trades with the Max, Reverse and Trading functions and break even with the Hedge function.

The advanced Max, Reverse, Trading and Hedge functions are indispensable for those who trade on exchanges like BetFair.

Indeed, with Arbulator 3.1, the trader is empowered to become a market maker just like a bookmaker but without the costs by laying and/or backing odds and stakes at exchanges like Betfair.

For better odds/returns and more income earning opportunities, you are welcome to Join Now for FREE at FREE account using the Refer and Earn code: HQQFLF6YF . While there is no guarantee that both the lay trades will be matched to return a profit, the market making trader can easily use Arbulator 3.1 to make a profit with a trading trade (Lay Low then Back High on same contender) or break-even with a  hedging trade  (Lay on opposing contender) during In-play.

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Why do I need Risk Free Profit?

If you looking for a proven arb alert service, you need the Risk Free Profit's SureBetPRO .

You don’t even need to be an expert on the computer and you don’t need any previous experience as an Arbitrage Trader when you use the tools and services with online training and support from Risk Free Profit.

Risk Free Profit is more than just SureBetPro. It offers at least 3 income generating opportunities to cater to different groups of opportunity seekers:

While the cost of a Risk Free Profit membership is US$139 per month, you can enjoy the membership for FREE:

• One time income from sponsoring.
  Receive a one time US$80 for sponsoring each new members to Risk Free Profit.
  Just sponsor 2 new members in a month and you will have more than covered your subscription!

• Recurring income from the 2x15 forced matrix.
  If you filled up to level 3 by referring 14 people, your commissions will pay for the subscription:
  1st level 2 persons x $2 = $4
  2nd level 4 persons x $2 = $8
  3rd level 8 persons x $16 = $128
  Total = $140

• Passive income from members' only Risk Free Pool averaging 3-4% weekly ROI that pays either monthly or yearly.

Here is what you can expect to gain as a Passive Investor with Risk Free Profit:

Click RFP Newsletter for Weekly Update and RiskFreePool's Performance

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Why do I need FairBot?

For the serious Sports Arbitrage Traders, FairBot provides the speed advantage and an enhanced betting interface to the leading Betting Exchange, Betfair.  It includes:

• Ability to refresh any event to as low as 0.1 second intervals, much quicker than Betfair itself.

• Ability to place single bets or reverse trades with only single mouse click.

• Price movement charts directly on the main screen for each contender.

• Set your own Back and Lay stakes and profit margin.

• Bet on any odds market, including "in-play" events.

• Ability to cancel all Unmatched bets using single mouse click.

• Optional bet confirmation and checking screens before and after placing bets.

• "Smart Bets" allow you to calculate stake to get maximum profit on your betting exchange trades.

• Friendly user interface.

• Ability to click on any odds cell rather than just the normal two middle columns on Betfair.

FairBot's wide range of sophisticated features will give you an enormous advantage over other Exchange Users and should enable you to turn that advantage into a profit.  Price movement charts directly on the main screen instead of having to click on a Contender's name to display a separate screen. It's perfect for live market traders, in-running players, and those whose main strategy is to trade for quick turnaround arbitrage bets and even those who want to place their single bets at lightning fast speed.

The simple and easy-to-use Windows XP-compatible interface is very similar to Betfair, which should make your betting easy and profitable. All the odds cells are active (rather than just two middle columns on Betfair) giving you additional flexibility for your backing and laying. For betting exchange traders, FairBot offers so called "Smart Bets" that allow you to trade on Betfair with ease and the maximum possible speed. Using "Smart Bets", FairBot generates the required bets to make a profit, (if matched), regardless of the result.

You are welcome to purchase and download a trial copy at FairBot Software.

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My New Hedge Fund by Mark Cuban (new window).

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Wealth {gained} through injustice dwindles away, but whoever gathers little by little has plenty.
- Proverbs 13:11