How do you calculate the optimal bet size for an arbitrage bet?

To calculate the optimal bet size for an arbitrage bet, you'll need to use a formula that considers the odds offered by each bookmaker and the implied probabilities of each outcome. The formula is as follows: 1 / Decimal Odds (Outcome 1) + 1 / Decimal Odds (Outcome 2) + … + 1 / Decimal Odds (Outcome n) = Total.

How do you calculate arbitrage opportunities?

The formula is as follows: 1 / Decimal Odds (Outcome 1) + 1 / Decimal Odds (Outcome 2) + … + 1 / Decimal Odds (Outcome n) = Total. If the total is less than 1, an arbitrage opportunity exists. Once you've identified an arbitrage opportunity, you can use the formula to calculate the optimal bet size for each outcome.

How do arbitrage bets work?

Each bookmaker sets odds based on their analysis, and sometimes, their opinions differ significantly. This variance is the golden ticket for arbitrage bettors. By carefully selecting and placing bets on these differing odds, a bettor can secure a guaranteed profit, regardless of the event’s outcome. Let’s break it down with an example: