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TopsFund is a company that invest into the sports betting market called "arbitrage". A sports arbitrage situation occurs when two Bookmakers (companies that handle bets on the results of a match or of an event) have different odds for an event and this difference will generate a profit or a zero loss on the worst case, no matter what the result of that event is.
How works Sports Betting Arbitrage?
Arbitrage is using the difference in markets in such a way that a risk-free profit can be guaranteed whatever the outcome of an event. In Sports Betting Arbitrage you are in fact taking an advantage of bookmakers differing opinions about the outcome of a sporting event to ensure a certain profit.
In the financial markets this may involve buying a commodity or financial instrument in one market and simultaneously selling the same commodity or financial instrument at a higher price on a different market to ensure a risk-free profit. In Sports Betting Arbitrage you are profiting from bookmakers having different opinions about the outcome of a sporting event.
Sports Betting Arbitrage bets win regardless of the outcome of the event without the need for any expert knowledge of sports or sports betting.
In other words arbitrage is a trading technique whereby exactly offsetting positions are taken in a market simultaneously but at different prices. The difference in price represents an immediate risk-free profit that is independent of the subsequent movement in price of the instruments traded.
For example, let's consider a soccer match with two possible results (there can be more than two, this is just an example), A and B and two Bookmakers, 1 and 2. Let's say we have the following odds:
Bookmaker 1 Bookmaker 2
Result A 2.00 2.40
Result B 1.91 1.66
If you place a $1000 bet on result A on Bookmaker 2 and a bet of $1000*2.40/1.91=$1256.54 on result B on Bookmaker 1, you will always make money.
If Result A comes, you will earn $2400 from Bookie2, giving you a net profit of $143.45
If result B comes out, you will make $2399.99 from Bookie1, giving you a net profit of $143.45
Sports arbitrage is more accessible to everyday people because of the internet, but there are still barriers which stop everyone from being successful. It takes capital, time, organization and energy to make consistent profits. It is important to develop streamlined processes that enable you to act upon opportunities immediately. Sports-arbitrage is risk-free, not effort-free. Your success depends upon your own level of commitment and hard work. Individual arbitrage prices do not last for long and there is a steep learning-curve for all new traders to climb.
1.5% For Life
110% After 1 Day
20% Daily for 15 Days
This post has been edited by HadenT: Jul 3 2011, 05:38 AM