Betfair Arbitrage: Profit from Price Discrepancies
Written by
Traderline Team
Arbitrage (arbing) is exploiting price differences for guaranteed profit. Rare opportunities, small margins, but zero risk when executed correctly.
Arbitrage Essentials
- Exploit price differences between markets
- Guaranteed profit regardless of outcome
- Opportunities are rare and fleeting
- Requires fast execution
- Very small margins
What is Arbitrage?
Arbitrage = backing and laying the same selection at different prices for guaranteed profit.
Arbitrage Example
Traditional Bookmaker: Liverpool to win at 2.00 (back)
Betfair Exchange: Liverpool to win at 1.98 (lay)
Action:
- Back on the Traditional Bookmaker at 2.00
- Lay at 1.98 on the Betfair Exchange
Result: 3 tick guaranteed profit
When Arb Opportunities Appear
Causes:
- Market inefficiencies
- Slow odds updates
- Different liquidity levels
- News not yet priced in
Reality: Rare and disappear quickly (within minutes)
Arb Strategies
Cross-Exchange Arbing
Setup: Price difference between Betfair and Traditional Bookmakers
Requirements:
- Accounts on multiple Bookmakers
- Fast internet
- Arbitrage Calculator
Risks and Limitations
Challenges:
- Opportunities disappear in minutes
- Small profit margins (1-5%)
- Requires large stakes for meaningful profit
- Commission reduces margins
- Account limits on some platforms
- Limited liquidity availability on the exchange
Not a get-rich-quick scheme:
- Hard to find opportunities
- Small profits per arb
- Time-intensive
Arbitrage sounds perfect (risk-free profit) but is harder in practice than theory. Most traders find better opportunities in value betting and trading.
Continue Learning
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