Definition: To arbitrage is to make a combination of bets so that if one bet loses another wins. There is an implication of having an edge, at no or low risk. The second bet hedges the first. Arbitrage can also be used as a noun.

 

Examples: Doc looks hard for the best line, and was able to bet the Yankees at -150 at one sportsbook while betting the Red Sox, their opponent, at +152 at another, thus giving himself an arbitrage.