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 theory seems to be that so long as a man is a failure he is one of God’s chillun, but that as soon as he has any luck he owes it to the Devil.”
—H.L. (Henry Lewis)