trading/arbitrage

[tommy tipster]

Could someone be so kind in explaining the difference between arbitrage and trading??

[presto]

trading / arbing is basically trying to get a risk free bet on an event (green on all selections), although both methods are different this is the ultimate aim. the differences are as follows:

ARB (arbitrage) - backing a selection with a bookie / exchange - then laying the selection on an exchange at lower odd's than what you backed it at.
eg... back man utd @ 2.5 with ladbrooks. then lay man utd @ 2.3 on betfair.

TRADING - this is less straight forward than an arb, (and more risky). as you basically try and predict the market. if you think the odds will shorten - then back now, lay later. and vice versa - if you think the odd's will drift then lay now, back later.
eg... back PNE @ 2.5 lay later @ 2.35 (when the odd's shorten).

[tommy tipster]

cheers Presto,it all makes sense now!

[Win2Win]

Trading has some different letters than Arbing :doh