Arbing the Betfair sportsbook and exchange

[Euler]

I've been digging around the sportsbook to judge how price rush is affecting trading, more to follow there. But one of the things I've noticed is you can often get an arb between the two.

Most typically when the price of something is coming in, or you now it's about to come in you can back at a decent price on the sportsbook and lay it on the exchange at a lower price.

OK you lose commission on the exchange bet, but you are going to pay that in PC anyhow. So it makes no difference and the net result is you take some money out of Betfair's pocket. So not exactly a problem their either!

[LeTiss]

Yes, but if BF operate in the same way as their bookmaking competitors, it won't be long before they close your account - disappointing if it's a bookie, but flipping disastrous if it's your exchange trading account

[marksmeets302]

I remember seeing something in the terms of agreement that more or less states that arbing is forbidden. While it is hard for betfair to detect if you're arbing between betdaq and them, it must be easy to conclude you are arbing between two of their products. I'd be careful here.

[Euler]

I remember seeing something in the terms of agreement that more or less states that arbing is forbidden.

Seems daft to have a product with two different prices, surely consumers will see that as a rip off, one way or another.

[magwitch78]

it only takes a couple of bets with the sportsbook for them to put restrictions on your account if the SP is a fair bit lower than the price you took. I can only bet pennies on the sportsbook now but thankfully they leave your exchange account alone..

[poklius]

I've been limited on sportsbook since its was introduced, haven't event placed a single bet there.. Thought this was a case for all traders?

[LinusP]

Two years ago you could make a lot of money arbing the sportsbook especially in the morning when the 'traders' where half asleep. But now they just limit you.

[fumanshoe66]

I use to back with the sportsbook the night before and arb on the exchange just before the race. It lasted 2 weeks my max bet now is £2.14 on the sportbook. Luckily no restrictions on the exchange.

Im surprised your not restricted on the sportsbook Peter? Maybe they would be afraid of bad publicity if they were to restrict a well known successful trader?