Arbitrage Betting Glossary
A quick glossary of the terms you'll meet in arbitrage betting and on betting exchanges — explained simply, with the English terms used internationally.
Arbitrage / Sure bet
A strategy where you cover every possible outcome of an event at odds that guarantee a profit regardless of the result. See what arbitrage is.
Back
Betting for an outcome — as at a normal bookmaker.
Lay
Betting against an outcome, on a betting exchange. You win if the outcome does not happen. See back & lay.
Betting exchange
A platform where you bet against other players instead of the bookmaker; it earns a commission.
Odds
The payout multiplier. Odds of 2.00 → an implied probability of 50% (1 / odds).
Liability
The risk amount on a lay bet: (odds − 1) × stake.
Commission
A small percentage (usually 2%–5%) the exchange keeps from net winnings.
Margin / Overround
The bookmaker's built-in margin — the sum of implied probabilities above 100%.
Value bet
A bet where the odds are higher than the true probability. See arbitrage vs value vs matched.
Matched betting
Exploiting offers and bonuses with a cover on the exchange, for low-risk profit.
Gubbing / Account limiting
When a bookmaker limits stakes or closes the account of a profitable player. See how to avoid it.
Stake
The amount you put on a bet.
Bankroll
The total capital you have available for betting.
Odds movement / Steam
The rapid change of odds; the main reason arbitrages disappear within seconds.
Palpable error
An obviously wrong odd the bookmaker is entitled to void — often behind margins that look “too good”.
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