Arbitrage in Theory
There are a number of potential arbitrage deals. Below is an explanation of some of them including formulas and risks associated with these arbitrage deals. The table below introduces a number of variables that will be used to formalise the arbitrage models.
| Variable | Explanation |
| Stake in outcome 1 | |
| Stake in outcome 2 | |
| Odds for outcome 1 | |
| Odds for outcome 2 | |
| Return if outcome 1 occurs | |
| Return if outcome 2 occurs |
Read more about this topic: Arbitrage Betting
Famous quotes containing the word theory:
“If my theory of relativity is proven correct, Germany will claim me as a German and France will declare that I am a citizen of the world. Should my theory prove untrue, France will say that I am a German and Germany will declare that I am a Jew.”
—Albert Einstein (1879–1955)