This is what i research recently, Arbitrage. Since you bet on the same bookie, you can't get sure winning (lock profit). Bookies always set the odds which is result more than 100% as they got the profit from the surplus percentage (bookies edge)
example ( decimal/euro odds ) :
Home 2.10
Away 3.50
Draw 3.10
this kinds of odds will generate 108.45%. this means 8.45% is the bookie's profit. no matter what punters bet on which side, the bookie always make a profit. This is called Dutch Book.
Odds moving up and down is based on money line and elapsed running time, but still, the odds will generate more than 100% calculation.
Bookies which is use the same software plattform, then they will display the same odds, ofc that is because they use one sotware plattform. there are some software plattform in the sportsbooks industry, but the odds different is slightly around 2-5%, still you can't arbitrage between 2 or 3 or more bookies.
Ok, now let's say we're doing arbitrage from 2 possibility outcome : Home or Away, this can be done
Example 2 : (First Half game)
Home 3.60
Away 3.00
Draw 2.10
Stake : $ 1000
Bet on Home : $ 454 * 3.60 = $ 1,634.4 (Potential Winning), minus your initial stake $1,000 = $643.4 (net winning)
Bet on Away : $ 545 * 3.00 = $ 1,635 (Potential Winning), minus your initial stake $1,000 = $635 (net winning)
Formula :
1 / 3.60 (Home Odds) = 0.278 (A)
1 / 3.00 (Away Odds) = 0.333 (B)
A + B = 0.611 (C) , next step is :
Initial Stake on Home : A / C = 0.454 * $1,000 = $454
Initial Stake on Away : B / C = 0.545 * $1,000 = $545
whenever the result for first half game Home win OR Away win, this will make you profit for $ 635
Assuming Home scored at minutes 26', well 50% you save with the profit. what about then Away team scored in last minute?? your $ 1000 will blow up. If this scenario is happen, simply lock your profit by place a bet on Draw after Home team scored first.
Nah, how many stake should you put on the Draw? it depends on how many profit you want.
After you have $ 635 profit in hand at minutes 26', let's say again you want to secure $ 300 for net profit.
So, the stake you have to put on Draw is $ 335 (635-300), at which odds ??
ok, we calculate again, the formula is like this :
Potential Winning / Initial Stake on Draw = 1,635 / 335 = 4.88 - you should bet on Draw at odds 4.88
Draw 4.88 * $335 = $1,634.8 (Potential Winning), minus your total initial stake $1,000 = $634.8 (net winning)
Let's calculate for overall :
Bet on Home : $ 454 * 3.60 = $ 1,634.4
Bet on Away : $ 545 * 3.00 = $ 1,635
Bet on Draw : $ 335 * 4.88 = $ 1,634.8
Total initial stake on this 3 bet is $ 1,334. Your winning for each outcome is $ 1,635. So your profit is $ 300
the odds ofc not strictly come up at 4.88, it depends on how strong the probability Away team will scored and how many minutes left for the end of fisrt half game. If the Away team is strong enough to scored and you fear they will scored soon, simply higher your stake on Draw in order to matched the running odds with Potential Winning.
This message was edited by naga288 on 01-May-2012 @ 6:51 AM