Cybernetics and Systems Analysis

, Volume 48, Issue 6, pp 912–920 | Cite as

Betting market: analysis of arbitrage situations

Article

Abstract

An arbitrage practice and its various applications to the betting market are considered. The ratio of profit and commitments and brake-even value of the market are proved. The concepts of speculative and systematic probabilities, conditional profit and conditional loss from a market event, and the efficiency of game strategies are analyzed. A typical two-position model of trading at an exchange is considered.

Keywords

betting market arbitrage probability betting trading model 

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Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  1. 1.Ukrainian State University of Finance and International TradeKyivUkraine
  2. 2.Taras Shevchenko National UniversityKyivUkraine

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