Financial markets have a variety of offers to investors. In recent time, there is a long lists of assets where investors can freely choose from- ranging from stocks, indices to currencies and commodities and many more. But no doubt, these financial instruments have potential risks that may harm investments. Because of the possibility of risks and the fear of losing their money, investors shift to an activity that guarantees sure victory like the arbitrage betting.
But are the odds really in our favor in this type trading activity?
The concept of arbitrage betting revolves around the buying of securities in one market and selling it in another to gain income out of price discrepancy. The main attraction in this most talked trading activity is that investors believe that a sure win is always in the offing and long term profits could be achieved as minimum risks are designed in this game.
Since the bookmaking system was introduced, arbitrage betting has become go-to-activity of investors. The recent development in technology makes it more popular and widely accepted by many. This process allows people to take advantage on the differentials in odds offered by two or more bookmakers.
Through this, arbitrageurs are guaranteed of sure profits, without needing to wait the final whistle. But despite having a big chance of winning, the return on investment only ranges from 2%-5%., depending on the events being arbitraged in and the number of factors affecting it.
It may sound to be good to be true as there are no investments that offer only wins. All forms have their losses. Still, a well-researched and well-organized betting can give you positive results.