ARB106: Is sports arbitrage risk free?
No. Nothing in life is risk free and sports arbitrage is no different. There are risks involved in sports arbitrage, but they relatively small and can be mitigated easily. What we can say is that the reward from sports arbitrage trading is far greater than the risk involved.
In addition, as mentioned in an earlier lesson, you don’t need to risk any money upfront. In the preliminary ‘paper-trading’ stage there is absolutely no cost and no bankroll required. You can read our lessons for free, familiarise yourself with arb-finding alert services for free, register at bookmakers for free and paper-trade any arbs you discover. Sports arbitrage can be evaluated thoroughly at absolutely no cost and no risk to you.
You have nothing to lose by paper-trading sports arbitrage.
If you decide to start ‘real money’ arbing, then you can deposit money with bookmakers to the level you feel comfortable with and get going. As with all investing/trading, you need to be aware of the risks involved and ensure you have processes in place, and the necessary knowledge that our lessons provide, to eliminate or mitigate these risks.
A later lesson discusses the 5 risks of sports arbitrage and mitigation strategies for each.