Exploring the lay arbitrage betting method
The most popular type of sports betting exchange involves supporting the outcome with the bookmaker and laying it with a betting exchange to ensure a profit. This betting strategy is known as back-to-lay arbitrage in orbit exchange. Learn the definition and formula for a back-to-lay arbitrage betting strategy.
Arbitrage betting is a strategy in which gamblers bet on all possible outcomes of an event at odds that ensure a profit no matter what happens.
The implied probabilities of the odds, for instance, would add up to 100% on a fair market based on how likely an occurrence is to occur. Bookmakers, however, price their market odds to exceed a 100% probability, giving them an advantage.
Exchanges for betting and arbitrage
Arbitrage betting has historically been conducted between two or more bookies. The advent of betting exchanges, such as Smarkets (learn what a betting exchange is), has, however, expanded the breadth of arbitrage opportunities.
A bettor can now cover all potential outcomes with just two bets—one back bet and one lay bet—by having the option to wager against a result, or “laying” it.
Discover the benefits of utilizing a betting exchange instead of a bookmaker. Betting exchanges have streamlined the procedure and expanded the availability of arbitrage betting opportunities. Additionally, betting exchanges accept arbitrage bettors, so there won’t be any restrictions on your account regarding Orbit Exchange
What does the term “back to lay arbitrage” mean?
The back-to-lay arbitrage betting technique, which involves placing two bets with a bookmaker and a betting exchange, is currently the most popular form of sports betting arbitrage in the Orbit Exchange.
This tactic enables punters to back an outcome with a bookmaker and subsequently lay it for a profit on a betting exchange.
When the lay price on the betting exchange is less than the back odds on another exchange or with a bookmaker, arbitrage chances are created. If executed properly, these wagers will cover all possible outcomes of the event, ensuring a profit regardless of the outcome.
Read more: Overview of Orbit Exchange
How is a back-to-lay arbitrage bet calculated?
Now that you are aware of what a back-to-lay arbitrage bet is, we will demonstrate how to calculate one using an example.
Before the start of a horse race, markets on the betting exchange are known to be unpredictable, with certain horses’ odds drastically shortening. These are referred to as steamers, and they offer the ideal situation for a back-to-lay arbitrage chance because bookmakers are prone to being reluctant to respond to changes in odds.
For this example, suppose you noticed a horse substantially short on the Smarkets exchange five minutes before the start, but no bookmaker has responded to the information. The following table shows the back and lay odds:
| Bookmaker (back odds) | Betting exchange (lay odds) | |
| Odds | 9.00 | 8.00 |
Given that the lay price with the exchange is lower than the back price with the bookmaker, there is certainly a potential for arbitrage.
How to determine your overall arbitrage profit from back-to-lay transactions
Your overall back-to-lay arbitrage profit, regardless of the result, would be £52.63 on both the bookmaker and the betting exchange.
Use this when betting.
Now that you are aware of what back-to-lay arbitrage betting is and how to calculate it, you are equipped with the knowledge and skills necessary to profit from differences in price between bookmakers and betting exchanges regarding Orbit Exchange.
Read more: Lay Bet in Orbit Exchange
Lay Bet in Orbit Exchange FAQs
1)What is “Back to Lay Arbitrage”?
The most often used type of sports betting arbitrage is the back-to-lay betting strategy, which entails making two bets with a bookmaker and a betting exchange.
2)How is Back to Lay Arbitrage calculated?
Arbitrage% = (1/decimal chances for outcome A multiplied by 100) + (1/decimal odds for outcome B multiplied by 100)
3)How many bookies does Arbitrage involve?
In the past, arbitrage betting has been done between two or more bookmakers.