It is no doubt that if you are beginning your arbitrage trading journey you will be looking at which bookmakers to open. Chances are if you are searching for Betfair arbitrage you are at the start of your trading journey. While all our information is available online we would like to re-share some key arbitrage lessons. If you are already well versed in our lessons then skip ahead. Although even here at Sports Arbitrage Australia we like to re-read over things from time to time as well.
What is Arbitrage Trading?
Since the beginnings of bookmaking, arbitrage has been around. Nowadays with our ease of access to computers and the online world, it is easier than ever to make huge profits finding opportunities and arbitrage trading. So how do we here at Sports Arbitrage Australia define Sports Arbitrage?
‘Sports arbitrage is the act of placing bets on all possible outcomes of a sporting event so that you guarantee a profit no matter the outcome of that event.’
Again if you are totally new or still on the first steps of your journey head over to our lessons in how to arbitrage. Our comprehensive and free lessons will have you making money in no time.
Who are Betfair?
Betfair was founded in 2000 in the UK. In 2014 Betfair Australia became wholly- owned by Crown Resorts Ltd who are listed on the Australian Stock Exchange. They are the creators of the Melbourne Crown casino and the Perth Crown Casino.
In terms of Betfair arbitrage, they are Australias only peer to peer wagering site. If you imagine an online marketplace where you place betweens on events with your friends. Except you don’t know the other person and never will. So if we take this into consideration then you can place what we call a Lay bet on through this website. Meaning you can place a bet for an outcome to Lose. Something which can be very helpful in arbitrage trading if you have found a win/lose opportunity.
How do Betfair make money from this? As opposed to other bookmakers they don’t include their margin in odds, instead gaining revenur through charging a small commission on a customers net winnings. Another plus to this- Betfair will never shut you down, the more profit you make the more profit they make. We are yet to conduct an experiment using Betfair and calculating what percentage of our profits are going to them however like everything in the trading world, profit is profit.
Why use Betfair?
As we mentioned Betfair are a betting exchange meaning you place bets peer to peer. Betfair take a percentage of your net winnings. This is great because it means you’ll never have your account shut down. IN terms of betting exchanges they are one of the bigger ones out there and offer a large number of events and sports to bet on. In addition to this, unique to Betfair is the ability to place Lay bets, meaning you can bet for an outcome to lose.
What is a Betting Exchange?
Betting exchanges are a little different to bookmakers as they are more of a virtual marketplace. Exchanges are peer to peer. While this is great, there lies the risk that you might not find the exact trade you are looking for, so while it is definitely good to have a Betfair account, don’t rely on it 100% for trading opportunities.
What other exchanges are out there? We recommend having a read about why we recommend Pinnacle.
Overall Betfair will likely be a bookmaker you use during your arbitrage trading career. For the simple fact that they will never limit you. The ability to place lay bets is also fantastic.