How To Hedge A Bet – What Is Hedge Betting?

By

Victor Arum

Victor Arum Sports Betting Writer

Victor Arum is a seasoned sports betting writer who currently contributes to SportsTalkPhilly. He creates insightful guides and how-tos to help sports bettors formulate winning strategies and make informed wagers. Victor also reviews and rates sportsbooks, deeming them a SMASH or PASS. When not analysing sports betting patterns or writing, he's probably stretching at the gym or (re)watching a sitcom

All posts by Victor Arum

Sports Betting Writer

Updated 12 Aug 2024

How we rank gambling sites?

How do we rank?

Read in-detail

• Copy link
• Whatsapp
• Twitter
• Facebook
• Telegram
• LinkedIn
• Email
• Reddit

Disclosure

We sometimes use affiliate links in our content, when clicking on those we might receive a commission – at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.

Hedge betting is a betting strategy where you place additional wagers on different outcomes of an event to guarantee a profit or minimize losses. It’s a simple and effective system.

To help you better understand hedge betting, we’ll discuss the concept in detail, explain what it means, and provide several examples. We’ll also share tips to improve your hedging skills and highlight the best times or markets to use the strategy.

What Is Hedge Betting?

Hedge betting is a strategy used in gambling to manage risks by covering different or all possible outcomes of an event. It helps you cut down losses and sometimes lock in a profit, no matter what happens.

This strategy is simple to implement, a big reason why it’s popular among sports bettors. You start by placing a bet on a specific outcome.

However, as the event progresses, the betting odds of different outcomes will likely change. You can take advantage of the shifting odds to place additional bets on other possible outcomes to reduce losses from your initial wager and potentially secure a profit.

Although hedge betting has been around for a long time, the rise of betting exchanges and the recent influx of top US sportsbooks have made it much more popular. These platforms give gamblers more opportunities to place various types of bets and manage their risks better.

Example of a Hedged Bet

To help you better understand hedge betting, let’s examine an example of a hedged wager in soccer betting.

Imagine a Major League Soccer match between Inter Miami and LA Galaxy. You stake a $100 bet on Inter Miami to win at odds of +200. If Inter Miami wins the game, you’ll cash out $300, which is $200 profit plus your initial $100 stake.

However, as the match goes on, Lionel Messi scores for Inter Miami and the sportsbook changes its odds. Now, the odds look like this: Inter Miami (-200), Draw (+250), and LA Galaxy (+500).

At this point, you may decide to hedge your bet by placing an additional $50 on the draw at odds of +250. If the match ends in a draw, your bet will pay out $175 profit + your $50 stake. This strategy allows you to guarantee a profit, whether Inter Miami wins the game outright or the match ends in a draw.

If Inter Miami wins, you’ll earn a profit of $150, as shown below.

Profit = Initial Bet Winnings – Your Hedge Bet

= $200 – $50

= $150

Assuming the game ends in a draw, you will still receive a profit of $75, as shown below.

Profit = Initial Bet Loss + Hedge Bet Winnings

= -$100 + $175

= $75

In this hedged bet scenario, you’re guaranteed a profit of either $75 or $150, regardless of whether the match ends in a draw or a win for Inter Miami. This example shows how you can use hedge betting to avoid big losses and secure a gain.

Hedge Betting on Futures Markets

Futures or outrights are a popular market for gamblers using the hedge betting system. Here, they place bets on long-term events and place additional wagers later on to ensure a profit or cut losses. Let’s take a look at an example of a hedged bet on the Super Bowl.

Imagine you want to place a wager on the Super Bowl winner even before the start of the regular season. So, at the start of the NFL campaign, you bet $100 on the San Francisco 49ers to win the Super Bowl at odds of +600. If the 49ers win, you’ll get $600 plus your initial stake.

Now, as the season goes on, the 49ers live up to expectations and make it to the Super Bowl. By the time they reach the final, their odds of winning may have changed to Evens or +100.

If you want to hedge your initial bet, you can place an additional wager on the opposing team. Let’s say the 49ers are playing the Green Bay Packers in the final, and you decide to bet $200 on the Packers at Even odds of +100.

Assuming the 49ers win, you’ll bag a profit of $400, as calculated below.

Profit = Initial Bet Winnings – Your Hedge Bet

= $600 – $200

= $400

Likewise, if the Green Bay Packers win, you’ll make a profit of $100.

Profit = Initial Bet Loss + Hedge Bet Winnings

= -$100 + $200

= $100

By hedging your bet on the Super Bowl, you’ll lock in a profit regardless of the final outcome.

• If the 49ers win, you make a gain of $400.
• If the Packers win, you earn a profit of $100.

Different Ways To Hedge A Bet

When hedging a bet, your goal may not always be to lock in a profit. Some people hedge a bet simply to get their stake back or go against their initial wager. Below are the various ways to hedge bets.

Hedge to Get Your Stake Back

As the name suggests, this simply means hedge betting to get your original stake back. It ensures you don’t lose your original wager, no matter the outcome.

Part Lay / Hedge to Lock in an Equal Profit

In this method of hedge betting, your goal is to make a profit, irrespective of the outcome of the event.

Hedge to Go Against the Original Bet

Here, you’re placing a bet that completely goes against your original wager. It’s often done when bettors receive new information that makes it seem likely that the opposite outcome will happen.

Hedge Betting Calculators

While hedge betting is simple to understand, calculating stakes and potential profits can be tricky and challenging. Thankfully, many betting calculators are available online to help you figure out how much to bet at different odds.

With a hedge bet calculator, you enter your initial stake, the odds, and the amount of money you want to hedge. The calculator immediately tells you how much to bet on the other outcome to secure a profit or cut losses. These tools make things easier, saving you time and eliminating mistakes.

Use Different Sportsbooks for Hedge Betting

Another way to effectively use the hedge betting system is to explore multiple sportsbooks. By setting up accounts with different top-rated offshore betting sites, bettors can shop around for odds and find the best prices to place hedge bets, thus securing better profits.

Below are the benefits of using multiple sportsbooks when hedge betting at a sports betting app.

• Better Odds: Different sportsbooks offer different odds on the same event. By comparing odds, you can identify the most attractive ones and get the best bang for your buck.
• More Flexibility: More sportsbooks mean more betting markets. This allows you to hedge your bets more precisely and leverage changing odds.
• Promotions and Bonuses: By using more than one betting site, you can take advantage of various promotions and bonuses like free bets. These promo offers add extra value to your bets.
• Wider Coverage: Some sportsbooks may cover certain events or markets that others don’t. With multiple betting sites, you get access to a wider range of events.

Hedge Betting on Parlay Bets

Hedge betting can also be used to make profits and minimize losses when wagering on parlays. If the first parts of your parlay bets have won, you can hedge the next bets to either get your stake back or lock in a profit. Although this will reduce your overall winnings, it can make your betting less risky, especially when you wager on straight H2H markets (no draws).

For example, imagine you place a 5-team parlay bet when NBA betting, as shown below.

• LA Lakers to win
• Boston Celtics to win
• Miami Heat to win
• Milwaukee Bucks to win
• Golden State Warriors to win

Parlay Odds: +3000

Let’s assume you initially wager $100 to win $3,000, plus the return of your $100, so a payout of $3,100. After the first four teams (Lakers, Celtics, Heat, and Bucks) have won, your parlay looks good. But to reduce your risk on the final bet, you decide to hedge the last bet.

To hedge a bet on the Warriors, you place a $400 wager on their opponent, the Clippers, who are priced at +150 to win. If they win, you’ll earn a profit of $600.

Now, if the Warriors win, you get a profit of $2,600.

Profit = Parlay Bet Winnings – Your Hedge Bet

= $3,000 – $400

= $2,600

Meanwhile, if the Clippers win, you receive a gain of $500.

Profit = Parlay Bet Loss + Hedge Bet Winnings

= -$100 + $600

= $500

Hedging the parlay bet above ensures a profit either way – $2,600 if the Warriors win or $500 if the Clippers win. This is how to secure a profit regardless of the final outcome of a game when hedge betting on a parlay.

Hedge Betting On In-Play Markets

Another way to hedge bets is to do it once an event has started, also known as live or in-play betting. In-play markets have fast-moving odds, offering good opportunities for hedge betting. However, you must act quickly to place your bets.

In live betting, odds change in seconds, so you need to be fast to place your hedge bets and take advantage of the constantly shifting lines.

A good strategy for hedge betting on live games is to wait until half-time or the end of a quarter when the odds stabilize. This gives you more time to assess and hedge a bet while the game is still in play.

Not All Bets Can Be Hedged For A Profit – Limit Losses If Need Be

Hedge betting can help you secure profits, but you should know that it doesn’t always work out that way. To make a profit from hedging, the odds on your original bet need to shorten. This can happen if the team you bet on starts the game well or a horse you backed becomes a favorite before the race.

Other factors like team news and weather conditions can cause the odds to change before or during a game.

Better Odds

If the odds on your initial wager improve or get shorter, you can place a hedge bet to lock in a profit. This means your favored team or horse is more likely to win, so you can bet on the other outcome and still make money no matter what happens.

Same Odds

If the odds remain the same, you can hedge your bet to break even. This means betting on the opposite outcome will get you your original stake back, so you won’t lose any money. However, you won’t make profits in this scenario.

Worse Odds

If the odds on your original bet get longer, hedging a bet for profit becomes harder. In this case, you may hedge for a small loss to avoid losing too much money. Losing a small amount is often better than losing everything. For instance, losing $10 on a game is surely better than losing $100.

Hedge Betting – The Best Time To Place Bets and Best Markets

Futures is arguably the easiest market to place hedge bets, but they take time, and you still need the odds to shorten.

Outright bets are wagered well before an outcome is decided, like betting on a team to win the Super Bowl or the NBA finals before the regular season starts. If your favored team is performing well and their odds improve, you can hedge your bet to secure a profit.

Live betting is another great option for hedging. By watching a match or following live updates of the game, you can determine the best time to hedge a bet.

For instance, if the team or player you bet on is in good form and their odds shorten, it’s the perfect time to place a hedge bet to secure a profit. Meanwhile, if the team or player is underperforming, you may want to hedge your bet to reduce your losses.

Hedge Betting vs Arbitrage Betting – The Differences

Hedging and arbitrage betting are two similar concepts that differ in some ways. The table below highlights the key distinctions between both sports betting strategies.

Example of Arbitrage Betting

Below are the NFL betting odds offered by BetOnline and Bovada for a game between the New York Giants and the Dallas Cowboys.

• New York Giants to win is priced at +100 at BetOnline
• Dallas Cowboys to win is priced at +110 at Bovada

To use the arbitrage system when NFL betting, you must split your stakes on both outcomes across the two sportsbooks. Let’s say you bet $100 on the Giants at $100 and $95.24 on the Cowboys at $110.

If the New York Giants win, you make a profit of $4.76.

Profit = Winnings – Total Stake

= ($100 * 2.00) – ($100 + $95.24)

= $4.76

Likewise, you earn a $4.76 gain if the Dallas Cowboys win.

Profit = Winnings – Total Stake

= ($95.24 * 2.10) – ($100 + $95.24)

= $4.76

In the arbitrage betting example above, no matter who wins, you are guaranteed a profit of $4.76.

Pros and Cons of Hedge Betting

Now, we’ll discuss the advantages and disadvantages of using the hedge betting system when wagering on sports.

The Last Word

With hedge betting, you can secure a profit or cut losses when wagering on sports. By understanding the best times and markets to place hedge bets and acting fast to changing odds, you can make lots of gains via hedging. Remember to stay informed and make timely decisions.

FAQs