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A sports arbitrage situation is shown below:
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Example Arb:
IBF/IBO Flyweight Title-Fight (Darchinyan v Donaire)
Over 7.5 Rounds » 2.39 (Pinnacle) » £485 returns £1,159
Wont Go 7.5 Rounds » 2.25 (Bodog) » £515 returns £1,158
Total arb / surebet : 15.89%
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A correctly staked investment of £1,000 guarantees a return of £1,158 whatever the outcome of the match. That's £158 profit due to discrepancies in the bookmakers' odds guaranteeing a 15.89% profit on your investment!
The above information tells us that Darchinyan and Donaire are competing for the IBF/IBO Flyweight boxing title. It also tells us that Pinnacle Sports have odds of 2.39 for the fight to to last for over 7.5 round, and Bodog have odds of 2.25 for the fight to end in fewer than 7.5 rounds.
By applying a simple mathematical formula to those odds, we are able to calculate that we can cover both possible outcomes of the bet and make a guaranteed 15.89% return on our investment.
We would invest our money in proportion to the odds on each possibility. The amount to invest on each outcome is calculated using another simple formula. £485 invested on over 7.5 rounds returns £1,159 and £585 invested on under 7.5 rounds returns £1,158.
£485 x 2.39 = £1,159
£515 x 2.25 = £1,158
Risk free profit = £158
Our members have access to several arbitrage calculation tools which automatically calculate the size of the arbitrage opportunity AND how much to stake on each selection!
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