Arbitrage betting involves comparing odds across several sportsbooks to find tiny edges that guarantee you a profit no matter the outcome of a wager. These opportunities are often very short-lived, and you must act quickly to make the most of them. If you place a wager too late and the odds change in your favor, the sportsbook will void your bet slip, reducing your potential return.
There are many different types of arbitrage betting strategies, but one of the most popular is Price Movement Arbitrage. This strategy is based on the idea that you can predict when odds will move in your favor by using an implied probability formula. Implied probability is calculated by dividing 1 by the odds and then multiplying it by the number of outcomes in a particular market.
A bettor can also use an edge-finding software to look for odds discrepancies, or they can simply check the odds at multiple sportsbooks to identify a potential opportunity. In addition, some sportsbooks offer odds boosts and free bets that can increase the profitability of a given market.
However, if you take advantage of these hedging opportunities too much, the risk is that your sportsbook will void your bets, making them unprofitable and potentially putting you at risk of being banned from betting sites. For this reason, hedging is not recommended for serious bettors unless they have a substantial bankroll. Nevertheless, even hedging in moderation can help bettors achieve small profits that can add up to a significant amount over time.