Arbusers

How do you play horse racing arbitrage, e.g. when you are racing 6 horses?

In my country there is no horse racing in any of our bookmakers but what I read is that people are placing back and lay bets.

If You are not familiar with lay bets, that is placing bet that something won't happen and most common exchange for laying bets is Betfair.

For example on football match with lay bets, if You placed bet on 1 (home) You don't need to place bet on X (draw) and 2 (away) or X2 (draw or away) (or any other combination for example like AH2(+0.5)) You can lay bet on 1 (home), that's, as I already said, placing bet that 1 (home) will not win.

Back bets = will happen
Lay bets = will not happen

Dean wrote: ↑

Sat Jul 22, 2023 3:38 pm

How do you play horse racing arbitrage, e.g. when you are racing 6 horses?

You need "dutching calculator".

Beware, the "dutching" approach is much riskier than back/lay trade. The "dutching" approach is extremely risky for rookies due to possible false self-confidence after several wins. At the very beginning, It's preferable to think about the strong rationale of taking the various levels of risk (X1, X2, X3, ... Xn) of the equivalent possible loss in the very long series due to uncovered positions instead of a hypothetical "dutching" profit (at a cumulative position by margin-laden price levels).
Is the true probability of assigned covered positions adequate relative to uncovered positions over the very long term? The more horses, the bigger the cumulative margin. How exactly to mitigate that? And later, what is the rationale behind their money management?
And many more questions, of course.
Rethink it again later. You'll probably see some things.