Technical Arbitrage and Hedging in Sports Spread Betting[easy-pricing-table id=”107″]
I’m pretty experienced spread betting the stock markets which is why I’m keen to get my teeth back into trading sports and taking advantage of arbitrage opportunities. Shares are too volatile at the moment and could be for a while for my style of trading. As you can imagine arbitrage spread betting opportunities in sports are scarce these days no matter how good you are at it, because getting decent amounts matched are impossible as spread betting providers keep improving their pricing systems.
By technical arbitrage/hedging I mean, (as an example) looking to exploit cross market performances in sports by stripping out the component parts and reducing exposure or at times creating an arbitrage situation…
I was initially introduced to the sports spread betting arbitrage concept way back when I was a client of SpreadTrades. Sadly they have since disbanded. At the time team performance in football was my biggie. However, the firms just got better and better at pricing it up as time went on and it is harder these days to arb successfully.
What I do to take advantage of arbitrage opportunities is to buy and sell the ExtraBet team performance index and hedge the best available time of the opponents 1st goal. Occasionally one can still get some on the rugby, but they are as rare as hen's teeth these days.
That was one of the options. The best was the Irish lot's component where they took off three for a corner conceded. In these days they had an unusual method of pricing up the set markets in tennis, when they first started out. I took full advantage, even though they had a couple of attempts at getting it right, their market maker was way off base. Unfortunately I did not last long with them. They took away my internet trading and when I phoned them up they referred me to the trading manager, who restricted me and moved every price as well. Basically they were telling me that I was not welcome anymore, so I gave up with them. I noticed after that, they changed their tennis set betting to fall into line with their competitors.
Of course, there's no such thing as a free lunch or a holy grail and I have to accept that. My next step is to invest in some decent software as trading off the Betfair site isn't suitable, and thus I need to keep researching.
More information is available at my sports spread betting guide, a UK website which specialises in offering a free financial betting stock market guide.
Is it Possible to Make Money From Betting Spread Betting
When a bettor spreads bet in a game like golfing, the first rule to learn and follow is that selecting a player who looks like the probable winner won't basically be the best profit making method.
It's true that at times, costs reflect the probabilities of a given player's winning. Still, some players do perform consistently well for one week after another.
However, these good players deservedly enjoy reputations since they're in good week-in and week-out.
Take another example of a rather different player. I'll present Nick O'Hern here for my case study. You have likely noticed that he has wonderful stats in literally every dep. of the game.
This guy constantly fights for victory. But can you let me know the amount of trophies won by this genius? By evening of Sunday, O'Hern typically arrives short. Understandably, in a winning bet this is all or may be nothing. But within spread bet over a 72-hole game, and / or finishing position, it is a full different story.
Get to know how the law of average has effects on sports spread betting – Regarding finishing positions, this O'Hern usually gets priced up typically around 27-30. But the 27-30 may be believed to be an average fair enough.
Now let us step a bit away from the dismal win stats of this person. Take the European Tour for example during the last three years, the remarkable Nick stepped up towards the first tee around 46 times.
This man has a full 33% strike-rate on the top-10 finishing position. The record of his top-25 is around 61%. And if you have noticed, he misses only one out of 5 cuts.
So what does that all amount to? Like recounted before, this is the spot where sports spread betting will show you results profitable ones I mean. Just think of each and every punter backing this man up to win, or simply letting their bet run or losing every time.
There would always be spread punters who know that one in each 3 times they back that O'Hern (I mean on the finishing positions ), they will bank a good average of almost 20 times their original stake.
When it comes to losing, they lose only the rate of one in 5. It doesn't take a mathematician to figure out why O'Hern has changed into a very hip choice to sports spread betting enthusiast.