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Arbitrage Betting Example – No complex Maths
There is a lot of mathematics involved, but we will do our best to explain it in layman’s terms without complex formulas and calculations. To make this as simple as possible, we will assume that the event in question has two possible outcomes.

Let’s say that Novak Djokovic is facing Rafael Nadal at the Wimbledon tournament, so it is equally probable for Djokovic to win as it is for Nadal.

A bookmaker would offer both outcomes at 2.0 (evens) if there were no vigorish. As we all know, the bookmakers try to have an edge and the market margins in their favor, so both outcomes will likely be offered at 1.95.

Bookies’ Opinions Differ – That Creates Opportunity
As we said above, bookmakers often have different evaluations of the likelihood of a certain outcome. In this case, we are looking for opportunities where all outcomes from the bookies will add up to less than 100% implied probability, meaning that the market edge will be in our favor.

Following that logic, bookmaker A may feel that Djokovic isn’t that much of a favorite, so the odds of winning are 2.05, whereas the odds for Nadal to win are 1.90. Bookmaker B might think that Djokovic is more likely to win, so they offer Djokovic to win at 1.85, whereas the odds for Nadal are at 2.02.

If you bet Djokovic to win at 2.05 with the first bookie and Nadal to win with the second bookmaker at 2.02, you will make a small profit regardless of the event’s outcome. If you bet 100€ on each outcome, you will start with 200€, and at the end of the match, you will have either 202€ or 205€ in your account.

That may not seem like a lot but bear in mind that we are talking about a sure profit that would be yours for the taking in a short time. If you are wagering larger amounts of money and can find at least several events where it is possible to arb, you can turn a serious betting profit.

To calculate the arbitrage percentage or market margin, you can use the following arbitrage calculator formula:

Arbitrage % = ((1 / decimal odds for outcome A) x 100) + ((1 / decimal odds for outcome B) x 100)

If the value is below 100%, it is considered an arbitrage opportunity.

How to Adjust Wagers in Arbitrage Betting
Okay, you may say – it is easy when we have two outcomes that are equally or almost equally probable, but what about a scenario where the odds for the favorite to win are 1.30. Well, it does not matter much because when you find arbitrage bet opportunity the calculation formula for how to adjust your arb wagers is simple once you know how much you want to invest. It is important to use the correct wagers to return the same profit and be on the winning side.

The formula to calculate and place risk free arbitrage wagers or bets is the following:

Individual bets = (Investment x Individual Arbitrage %) / Total Arbitrage %

For arbitrage betting, let’s assume that you find the odds for the favorite to win at 1.33 and the odds for the underdog or draw bet is offered at 4.50 by a betting exchange via a lay bet (the lay bet is a type of bet that means betting against a certain outcome, in this case against the favorite to win).

Your total investment bet or wager is 1550€, you would need to bet 350€ at 4.50 and betinasia 1200 at 1.33 or different amounts while maintaining the same ratio between the two bets. If the said amounts are placed, you will win 1575€ if the lay bet wins and 1596€ if the favorite wins.

Make Sure That You’re Profitable Whatever the Outcome
Considering that the total bet is 1550€, you will have a profit of either 25 or 46, which may not sound like much, but again, we are talking of a guaranteed profit here.

If you know that there is a sure profit and you know what the maximum stakes offered by the two bookies are, you will be able to calculate what is the maximum amount that you could potentially win. We will make a provisional arbing table based on the odds we set in our hypothetical example above.