What is the diference between arbing and hedging?

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jim7
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jim7

What is the diference between arbing and hedging?
« on: April 23, 2018, 01:39:57 PM »

Hi, everyone. Yesterday i was reading smth about hedging, and I honestly fount tis very similar to arbing. I found this: "The concept is based on placing bets on different outcomes to create an outcome that returns a profit – winnings minus all stakes – regardless of whether the original bet wins or loses."
 Also, it's not a common term, I mean iheard about it but not frecuently. tnx
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golem77
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golem77

Re: What is the diference between arbing and hedging?
« Reply #1 on: April 23, 2018, 03:40:44 PM »

arbing = making profit
hedging = protect assets

that's the main difference, you may use this also if you arbing in BTC or just sending to other exchange (with better price) but in the end hedgig always costs.

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yjsr28
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yjsr28

Re: What is the diference between arbing and hedging?
« Reply #2 on: April 24, 2018, 12:19:50 PM »

This was useful for me when i tried to understand what hedging is: If you are familiar with the concept of back and lay then it will be easy to understand what hedging is all about. Let’s take horse racing as an example: if you back a horse then you expect it to win but if you lay it then you are effectively betting on it to lose.

Hedging requires a back and a lay on the same horse in the same race but one stake is made ante post and the other is placed while the event is in play. The objective is to take advantage of the fluctuating odds to ensure a profit at the end of the race itself.
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jim7
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jim7

Re: What is the diference between arbing and hedging?
« Reply #3 on: April 24, 2018, 12:41:29 PM »

I see, I ve found some exaamples also and it seems a bit clear now. tnx
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arbusers
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arbusers

Re: What is the diference between arbing and hedging?
« Reply #4 on: April 24, 2018, 01:51:13 PM »

Everyone has a different perception about arbing, trading, hedging and especially middling.
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