What Is Dutching?
Dutching means backing more than one selection in the same market so that you achieve roughly the same profit whichever of your selections wins. You are still taking a view on the market – you think a particular group of runners is overpriced – but you are spreading your stake across them rather than picking just one.
Traders typically use dutching when:
- There is no single standout favourite
- Several runners look over-priced according to their tissue or model
- They want multiple “ways to win” with controlled exposure
On Smarter Trades, the free dutching calculator lets you enter up to six selections, your total stake and your exchange commission. It returns the stake for each selection and your approximate profit if any of them wins. You can try it on the main tools page: Open the Dutching Calculator.
What Is Arbitrage?
Arbitrage (or “arbing”) is different. Instead of expressing a view on which runner is value, you look for price mismatches between bookmakers and exchanges (or between two exchanges) that allow you to:
- Back and lay the same outcome at different prices
- Back different outcomes at different firms
- Lock in a small, theoretical profit regardless of the result
In a pure arbitrage situation, you do not care who wins. You are only interested in whether the prices combine to give you guaranteed profit after stakes and commission are accounted for.
Key Difference: View-Based vs Price-Based
The most important distinction is:
- Dutching = view-based (you believe certain runners are value)
- Arbitrage = price-based (you exploit price discrepancies regardless of opinion)
Dutching still requires an edge. If your chosen group of runners is fairly or under-priced, you will lose money in the long run. Arbitrage, in theory, does not require you to beat the market’s estimation of probability – only to find misaligned prices that add up in your favour.
Simple Dutching Example
Consider a horse race where you like three runners:
- Horse A @ 4.0
- Horse B @ 6.0
- Horse C @ 9.0
You want to risk £60 in total and aim for the same profit if any of them wins. A dutching calculator will give you stakes something like:
- Horse A → about £28
- Horse B → about £19
- Horse C → about £13
If you have priced the race well and that group genuinely contains value, this can be a sensible, structured way to express your opinion.
Simple Arbitrage Example
Now imagine a different situation. A bookmaker is offering odds of 3.20 on a team to win. At the same time, Betfair is offering lay odds of 2.90 on exactly the same outcome.
In theory, you could:
- Back the team at 3.20 with the bookmaker
- Lay the team at 2.90 on Betfair
With the right stake sizing, your total profit after commission can be positive no matter who wins. That is the essence of arbitrage – you are not trying to predict results, just harvest small price differences.
Tools That Help Dutching and Arbitrage
While Smarter Trades does not automate arbitrage scanning, several calculators can support both dutching and arb-style thinking:
- Dutching Calculator – spreads stakes across multiple runners
- Lay Liability Calculator – shows risk when laying for an arb leg
- Back/Lay Hedge Calculator – balances opposing back and lay positions
- EV Calculator – checks whether a price is truly positive expected value
All of these tools are browser-based and available on: Smarter Trades Main Tools.
Risk Profile: Dutching vs Arbitrage
Dutching Risk Profile
Dutching still involves normal betting risk. If one of your runners wins, you profit; if all lose, you lose the entire stake. Your expected result depends on how accurately you have assessed value in the market.
Arbitrage Risk Profile
True arbitrage, when executed correctly, aims for near risk-free profit. But in the real world, risks still exist:
- Account limitations or closures at soft bookmakers
- Bet rejections or stake limitations
- Price movements before both sides of the bet are placed
- Rule changes, void markets or palpable error claims
These operational risks mean that arbitrage is not completely free of danger, even if the maths looks perfect.
Which Strategy Is Right for You?
It depends on your goals and temperament:
- If you enjoy form study, modelling and having an opinion on races or matches, dutching can be a natural extension of value-driven betting.
- If you prefer scalping small, consistent edges and are comfortable dealing with potential account issues, you may be drawn toward arbitrage.
Many traders start by learning dutching and risk management on exchanges only, then explore arb-style trading once they have a firm grip on execution and variance.
Frequently Asked Questions
Is dutching the same as arbitrage?
No. Dutching is about distributing stakes across multiple value selections in one market. Arbitrage is about locking in profit across different prices, often at different firms or on different exchanges.
Can dutching ever be risk-free?
Not in the same way as pure arbitrage. There is always the chance that none of your dutched selections win. The edge comes from your analysis, not from a guaranteed price imbalance.
Do I need multiple bookmaker accounts for arbitrage?
In most cases, yes. Many classic arbitrage setups involve backing at one bookmaker and laying on Betfair or another exchange. However, some short-term arbs exist solely between exchanges or between back and lay sides on Betfair.
Can I use Smarter Trades calculators for arbitrage?
Yes, indirectly. The dutching, lay, hedge and EV tools can help you evaluate potential arb positions and ensure your stakes and liabilities make sense. They will not scan for arbs, but they will help you check your maths.
Where can I practice dutching with support tools?
You can use the free Smarter Trades dutching calculator here: Smarter Trades Dutching Calculator.