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:
“The things that will destroy America are prosperity-at-any- price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.”
—Theodore Roosevelt (1858–1919)