The next step is to calculate how your investment needs to be broken down in terms of stakes across both bets. This is so that you are returning the same profit regardless of which outcome wins.
The idea is to return the same profit regardless of whether the first or second outcome is successful, so it is critical to use the correct stakes – if not, you could find that one outcome is more profitable than the other or that you actually lose money if one outcome wins. To calculate the individual stakes:
Individual bets = (Investment x Individual Arbitrage %) / Total Arbitrage %
Rafael Nadal stake = (£500 x 84.746%) / 99.032% = £427.87
Kyle Edmund stake = (£500 x 14.286%) / 99.032% = £72.13
£427.87 + £72.13 = £500 total stake
You therefore know that to make £4.89 profit from £500 (0.968% profit) you need to place a bet of £427.87 on Rafael Nadal to win at odds of 1.18 and £72.13 on Kyle Edmund to win at odds of 77.00. As you can see, this is quite a lot of work for less than £5.00 profit, but as mentioned, arbitrage betting calculators can take a lot of the manual work away from this process. |
