A Unique Way To Generate Consistent, Guaranteed Profits
A Unique Way To Generate Consistent, Guaranteed Profits By
Daniel Tong
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www.arbitrage-profits.com/article.htm
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Are you happy with the returns you are receiving on your hard
earned money? Like most people, you probably want your money to
work harder for you.
You will be surprised to learn that you can actually do better,
in terms of returns on funds employed and safety, than most fund
managers - by using a little known technique called sports
arbitrage.
Does arbitrage involve clairvoyance and being able to forsee the
future? Does it involve complex modeling to predict the outcome
of a sporting event? No, it is none of these. Arbitrage is
soundly rooted in the logic of mathematics. You do not have to
be a sports expert or rocket scientist to be successful at
arbitrage.
Arbitrage is well known in the financial markets. Arbitrage
transactions are taking place all the time in the dealing rooms
of large institutions. Unfortunately, ordinary investors will
never have access to these arbitrage opportunities.
In contrast, arbitrage opportunities in sports betting are
accessible to every sports bettor.
With the phenomenal growth of online sports betting in recent
years, anyone with a computer and internet access can now act on
arbitrage opportunities in the sports betting markets. Many
'arbs' are of short duration and difficult to act upon unless
you are constantly monitoring the markets or your email box for
'arbs' alerts! However, there are sufficient numbers of sizeable
and stable 'arbs' ( lasting several hours or more) to make this
an extremely profitable exercise, without requiring a great deal
of time or effort on your part.
A small paradigm shift is all that is needed to appreciate the
beauty of arbitrage - a 'sure win' situation and profits without
involving any risk.
Every one wants quick windfall profits but look at the huge
risks we often take - knowingly or unknowingly. The sad fact is
that many honest, hard working investors have lost enormous
amounts of money in the stock markets during the past few years.
Sports arbitrage is easier and safer than the stock markets and
more profitable than bonds or bank deposits.
Putting on an arbitrage transaction is a 'no brainer' as
compared to doing a trade in the stock, commodities or currency
markets. After all, how stressful can it be when you have a
situation where a profit is assured -regardless of which team or
player wins!
Each arbitrage opportunity is unique and the profit margin will
vary. It is entirely up to you to select those 'arbs' which you
wish to put on - simply ignore those that do not meet your
profit expectations.
You may ask "If there is a guaranteed profit, why not bet the
farm?" Good question. The answer is "No" because all sportsbooks
have betting limits. This effectively limits the size of the
arbitrage transactions we can put on. As the sportsbooks have a
thin edge over the bettors, the ''Law of Large Numbers'' will
work to their advantage in the long run - the sportbooks
actually prefer numerous small bets over a few large bets!
The profit margin on arbitrage transactions is typically in the
1% - 5% range, although larger profits are not uncommon. 3% net
profit a transaction lasting 2 or 3 days may not seem like much
but because it is risk free, it quickly adds up. Remember, there
are no losses to set you back. Consider this : 1% profit for
each day money is invested is equivalent to 365% return on an
annual basis - an excellent return by any measure.
With arbitrage, you let the Law of Compounding work its magic.
Of course, no one can predict the number of arbitrage
opportunities which will occur. Suffice to say that with
thousands of sporting events occurring all year round, there is
an abundance of arbitrage opportunities. Is there a possibility,
however slim, of default by a sportsbook? Yes, and you should be
prudent in the selection of the sportsbooks that you will deal
with. Bettors are spoilt for choice as there are many well
established and reputable sportsbooks (particularly UK and
Australian) to choose from. Of course, you may not always get
the best odds when using these established 'names' but this is a
small price for safety and reliability.
The arbitrage strategies are completely legal and in many
jurisdictions where the sportsbooks are located, the winnings
are tax free. As sportsbetting takes place globally, you are
responsible for tax liabilities (if any) on winnings remitted.
There is 'no slippage' or other hidden costs. Other than the
occasional cost of transferring funds to and from your accounts,
there are very few costs associated with arbitrage transactions.
You will need to pay for your internet connection ( which most
people have any way for email , web surfing, VOIP) and an 'arbs
alert' service if you decide to use one. There are no brokerage
fees, stamp duties or expensive data feeds. Real time data on
prices is available on the web sites of the sportsbooks. There
is also no need to be glued to the computer screen all day! It
only takes a few minutes to check and put on an arbitrage
transaction.
In the span of only a few years, online sports betting is about
to become a billion dollar industry. Where there are markets,
there will always be arbitrage opportunities. Have no fear that
your knowledge of arbitrage techniques will ever become
obsolete.
Daniel Tong http://www.arbitrage-profits.com
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