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Bet Limit
Q: What is a bet limit? A: A bet limit is the maximum or minimum amount a bookmaker allows on a market, and it directly limits the executable size of an arbitrage strategy.
Bet Limit
Q: What is a bet limit?
A: A bet limit is the amount restriction a bookmaker puts on a market.
It usually includes:
| Type | Meaning |
|---|---|
| Maximum limit | The largest amount allowed on this market |
| Minimum limit | The smallest amount required |
| Dynamic limit | A limit that changes by account, match, market, time, or odds |
In the model, amount is usually a ratio, not an absolute stake.
For example:
| Leg | Stake ratio |
|---|---|
| Over 2.5 | 0.4913 |
| Under 2.5 | 0.5087 |
If the total bankroll for this strategy is 1000, the actual stakes are 491.30 and 508.70.
But if the Under 2.5 leg can only accept 100, the strategy cannot be executed with a total bankroll of 1000. The maximum executable bankroll must be scaled down:
\[ M\le \frac{\text{limit}_i}{x_i} \]
For the Under leg:
\[ M\le \frac{100}{0.5087}\approx196.58 \]
So the whole strategy can only be executed at about 196.58 total bankroll.
Bet limits turn a theoretical opportunity into a practical execution problem.