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
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“Freud was a hero. He descended to the “Underworld” and met there stark terrors. He carried with him his theory as a Medusa’s head which turned these terrors to stone.”
—R.D. (Ronald David)