Reverse line movement is a cool word in sport betting where advanced bettors monitor line movement and attempt to grab an anomaly where a sportsbook is moving line in the opposite direction of what makes sense.
Bettors will study the lines and the way they move around to detect these rare occasions, and then bet them to attempt to make the most. However, why is it that bettors scrutinize lines so closely, and what’s the actual value of finding situations where the line movements contradict what logic would dictate?
It all sounds a little fuzzy. Let us have a deep dive into what inverse line motion is about.
Why Do Sportsbooks Establish Reverse Line Functions?
In very general terms, how a sportsbook makes their profit is that they try to get even sums of money on every facet of a game and take their commission or”juice”, as it is known. Let’s take a look Instance line packers patriots
Let’s say there’s $55,000 worth of stakes on New England and $55,000 worth of stakes on Green Bay. That means that no matter whoever covers the spread, sportsbooks will cover $50,000 in winnings however maintain $55,000. This means that they’ll create a $5,000.
That’s the perfect situation for oddsmakers. Because most bookmakers will inform you, that rarely occurs.
Why Does the Line Move?
As you can imagine, it is very tricky to reach a perfect 50/50 split on a game. Because of this, sportsbooks have to move the lines to correct for supply and demand.
Consider it like a stock cost: when demand for a stock is large and people are buying, the cost goes up. When people don’t want to hold that inventory anymore and they start dumping it, the cost goes down.
A similar notion is in play the gambling lines since the oddsmakers must adapt to the action. Let us reuse our example from above: Instance line packers patriots
This time, let us say there is $110,000 worth of stakes on New England and $0 on Green Bay.
As you can see, that the sportsbooks will have a huge liability on this game and they will really need Green Bay to acquire lest they end up in serious trouble. To avoid such significant financial liability, they are going to move the line. If nobody is betting Green Bay at +2.5, they’ll transfer them to +3, +3.5, etc until players see enough value on the Packers and begin betting on them.
This line motion is essential to a sportsbook’s survival. The challenge is they don’t always move it as a result of this, so that’s where things become tricky.
How Sharps and Squares Influence Line Movement
If all bets were equivalent, the sportsbooks would adjust the traces in a way that we’ve described above. The challenge is that cash generally is not evenly dispersed. That is where things become interesting.
Bettors are usually put in two categories: squares (or people ) and sharps. Squares are bettors that are amateur and usually lose. Sharps are.
Since sportsbooks understand exactly how great sharps are, they will typically trust them on their own predictions. How they’ll tangibly demonstrate this trust them will be to adjust the betting line according to who they are gambling on and not always on where the general money is about a match.
By way of example, let’s say that 60% of the cash is on New England and just 40% is on Green Bay. However, respected bettor Billy Walters puts a bet on New England. The sportsbooks can subsequently decide to either keep the line where it is (even though they would need more money on Green Bay) or perhaps move the line in New England’s favor. They know that sharps triumph in the long run, so trusting them is a fantastic strategy.
That’s another reason why sportsbooks may move the line. That’s very important to know as we move into reverse line motion.
What’s Reverse Line Movement?
That is quite a lengthy set up for reverse line movement, but it’s important to understand all the different reasons a lineup moves before diving into the particularities of reverse line motion.
What reverse line movement actually refers to is when bettors see a lot of action on one side, but instead of the sportsbooks shifting line in the obvious direction (to make the opposite side more attractive and encourage stakes to balance things out), they are in reality moving the line in the contrary direction.