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The profit margin on arbitrage transactions is typically in
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
Law of Compounding work its magic.
Of course, no one can predict
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
selection of
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
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
sportsbooks are located,
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
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
web sites of
sportsbooks. There is also no need to be glued to
computer screen all day! It only takes a few minutes to check and put on an arbitrage transaction.
In
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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Risk Free Profits With Sports Arbitrage
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