Book Arbitrage - Exploit Price Discrepancies Within An Event
Book Arbitrage Example 1
This is an example of a 98.38% book on a football match. The home team is best-priced at 1.82 with a bookmaker that has imposed a max stake limit of £250, and the draw is available to be backed at 3.70 on Betfair, where your commission is 5%. As an arb is available whenever the book percentage is below 100%, this is a nice opportunity for you to make some risk-free money by backing all 3 possible outcomes. However, you would like to know how much to stake on the draw and the away team in order to win the same amount.
The respective stakes of £127.63 and £70.00 output by Multiback guarantee a profit of £7.37, whatever the result. This represents a return of 1.65% on your total stake of £447.63.
Note that the book percentage would be even lower (97.36%) if you didn’t have to pay commission on the draw. Multiback factors the commission into its book percentage calculations when commission is payable on some but not all selections.
Book Arbitrage Example 2
This example is taken from a 95.4% book in a tennis match. There is plenty of money available to back the favourite at 1.93 on Betfair, where your commission is 4.75%, and there is no max stake limit on the other player. You want to spend a total of £1,000 on this arb.
The stakes output by Multiback guarantee a profit of £48.22 whichever player wins. Whenever you are arbing on tennis matches, you should always check that both bookies have the same rules regarding settlement of uncompleted matches.
Reproduced with Permission from Arbcruncher.com
Read our full tutorial on Arbitrage