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Hedge Betting – Make a Profit Regardless of Result

Hedge betting is the simplified version of arbitrage. This betting guide explains how it works and identifies the similarities and differences between these risk management systems. The goal is to secure winnings regardless of the match result by betting on the opposite outcome. Hedging, just like dutching, is a strategic approach in sports betting that allows bettors to minimize risk or secure profits by betting on opposing outcomes.

Hedging is one of the betting terms that beginners and veterans alike can learn. Anyone can use hedging bets to secure winnings in straight bets or accumulators. They work for all sports and most markets, so understanding what is hedging betting will deliver long-term results.

Summary of the article

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What is hedge betting?

The easiest way to explain what is a hedge in betting is to describe it as betting the opposite. If a pending bet is doing well, you can hedge against the risks. Assuming the betting odds have improved since placing the origin wager, you bet on the opposite for that outcome.

Unlike arbitrage betting, you don’t have to find the perfect balance between low odds versus high odds. This makes it easier to hedge your bets at any point by betting on the opposite. With the right bets and timing, you can guarantee a profit or at least greatly reduce the risks of a loss.

Beginners can use an odds calculator to act quickly and maximize the returns. Experienced punters can make it work for parlay and best system bets and avoid heartbreaking losses. You can use a parlay calculator for accumulators with more selections. A hedge betting calculator can be used to calculate the optimal hedge bet amount, ensuring a guaranteed profit.

The meaning of 'hedge your bets'

“Hedge” is an old verb in English that has been used since the 16th century. Its original meaning was “avoid commitment”, so “hedge your bets” actually means “don’t put all of your eggs in one basket”.

In the early 17th century, the term started to be used in financial transactions. Since then, it simply means “make additional bets with other bookies to cover every outcome of a specific event”.

Understanding hedge betting strategies

Hedge betting is a system that is used to manage bettors’ risks and secure a profit or cut down evident losses. There are several types of hedging strategies. Each one comes with its pros and cons. Quite a lot of factors determine what type of sports betting strategy to use including risk appetite and core objectives of the bettor.

  • One common strategy is to enhance the expected value. Place a hedge bet that maximizes the expected value of the original bet. This strategy offers the highest potential reward, but there is also a high risk.
  • Another common strategy is called the break-even approach. Here, bettors place a hedge bet that covers the potential loss of the original bet. This strategy is less risky than maximizing expected value but also offers a lower potential return.
  • The equal benefits strategy is the most conservative so far. This strategy involves placing a hedge bet that ensures bettors with a profit regardless of the outcome.

Football hedge betting

Football is one of the most suitable sports for hedge betting and, generally, the following two basic football hedging strategies will enable you to use hedge bets most efficiently:

  • If the odds drop after playing a lay bet, place a back bet.
  • If the odds increase after playing a back bet, place a lay bet.

To understand the hedge meaning in betting it is always easier to provide an example.

Let’s assume you bet $100 on Manchester City to win the Premier League at the start of the season. They are the reigning champions and the best team, so the odds of 3.00 made perfect sense. However, halfway through the season, they are two points behind Arsenal and have a busy schedule in the Champions League and FA Cup. A solid betting advice is to bet another $80 on Arsenal to win, as they are now priced at 3.50. This is an example of a hedge in betting as a tool to minimize the risks.

You can take it further and bet a smaller amount of $20 on Chelsea, who sits in third place. The Londoners are seven points behind, but the high odds of 15.00 are worth a shot. At this point, you have invested a total of $200, and these are the three possible outcomes:

  • If Manchester City wins the Premier League, you make a $100 profit
  • If Arsenal wins the Premier League, you make an $80 profit
  • If Chelsea wins the Premier League, you make a $100 profit

Calculating a back to lay hedge bet

Laying is betting that an outcome will not happen, while backing is betting that an outcome will occur. Therefore back to lay is simply to place an additional lay bet on a back bet that you have previously played while you are hedging on the two most likely outcomes (the team will either win or lose the match).

Suppose you bet 100 EUR at odds of 1.45 for Team A’s probability of winning (back) at the beginning of the match. 1.30 odds are offered for Team A’s probability of losing (lay). If you calculate the amount of the lay bet (hedge bet) correctly, you will be able to make a certain profit in any case. The formula you will use to calculate this amount is:

  • (back price * back stake) / current lay odds = hedge bet amount
  • (1.45 * 100) / 1.30 = 111.53 EUR

By using the best odds margins you find at online bookmakers you can further increase your potential earnings.

How to hedge live betting?

Hedge bets can also be used as a live betting system and provide the same advantages. The only difference is that they become available after the match starts, and the betting window remains open until the match ends. So before the match is over, you can increase your odds of making a profit by placing both back and lay bets. This time, let’s explain the lay to back hedge bet by giving an example:

Let’s assume at the beginning of the match that you bet 50 EUR on Team A to lose (lay), at odds of 2.5. The same bookmaker offers 3.20 odds for the probability of Team A to win. Until the match is over, you can increase your odds of making a profit by placing a hedge bet that you calculate according to the following formula:

  • (lay odds * lay stake) / back odds = hedge bet amount
  • (2.5 * 50) / 3.20 = 39,06 EUR

Hedge betting can be used not only to secure a win but also to minimize your losses. So while you would normally lose 100 EUR, with a correctly played hedge bet you can reduce this amount to 20 EUR, for example, and this applies to both pre-match and live bets.

When to place a hedge bet

Timing is essential when it comes to placing a hedge bet. The best time to place a hedge bet is when the likelihood of the original bet winning has increased, and the bettor wants to lock in a profit or minimize potential losses. The choice to hedge a bet depends on different factors, including the amount of money you choose to risk and the potential impact on the bettor’s strategy.

For example, take a punter who places a futures bet on Kansas City Chiefs winning the Super Bowl at 10:1 odds. As the season progresses and the Chiefs make it to the championship game, the original bet significantly increases in value. At this moment, placing a hedge bet on the opposing team to win the championship game can guarantee a profit no matter the outcome. This strategic move guarantees that the punter benefits from his initial foresight while managing the risk associated with the final game.

Using bonuses for hedge betting

One of the most common sports betting mistakes beginners make is not using bonuses even though almost every bookmaker offers a free bet bonus for new members. Using this bonus it is possible to place hedge bets and this advantage is particularly useful for moneyline betting. To give an example:

Find a bookmaker that offers a free bet bonus and become a member. In this example, we will assume that you have won a 20 EUR bonus.

  • Place a 25 EUR back bet at odds of 2.00 for Team A to win a match.
  • Use your free bet balance to place a 20 EUR bet with odds of 2.00 for Team A to lose the match.
  • If you win the first bet, you will receive 50 EUR. If you win the second bet, you will receive a 40 EUR payout. In any case, you will make a profit just because you invested 25 EUR.

Common mistakes to avoid in hedge betting

While hedge betting can be a powerful tool for managing risk, there are some common mistakes that punters should avoid to maximize their success:

Tip

  • Hedging too early or too late – Bettors should know that hedging too early can result in a lower profit while hedging too late can lead to a higher loss.
  • Hedging too much or too little – Over-hedging can significantly reduce potential profits, while under-hedging can leave the bettor exposed to higher losses
  • Using a hedging calculator – This is essential to determine the optimal hedge bet amount.
  • Consider the implied probability of the original bet – Punters should understand that if the implied probability of the original bet is high, it may not be necessary to hedge, as the original bet is already likely to succeed.
  • Consider the total bet amount – If the total bet amount is too high, it can lead to a higher loss if the hedge bet does not succeed.

Pros and cons of hedge betting

PROS

  • Easy to use
  • Minimizes the risk
  • Acts like insurance for your original bet
  • Can be used on any sport

CONS

  • There is no guaranteed profit
  • Sometimes arbitrage betting may be the better option

Hedge Betting - Better Safe than Sorry

The hedge betting meaning is closely related to money management. Sports betting is a marathon, not a sprint, and the ultimate goal is to be profitable. In the short run, you must ensure you don’t go bankrupt due to bad luck and unforeseen circumstances.

Hedge betting is a simple tool to reduce risks and guarantee profits. It works for every sport because you can always bet on the opposite outcome at the right odds. You need to be patient enough to cash in on bets that go well and smart enough to settle for smaller but certain wins.

Frequently Asked Questions about hedge betting:

Hedge betting is a legal method of betting and there is no law that prevents it. Some bookies, however, may state that hedge betting is against their TOS.

Hedge bets are available as an option at many online bookmakers across the world. But if this type of bet is not available at your favourite bookmaker you can still benefit from it since this bet involves placing two bets to cover every possible outcome.

The goal of hedge betting is to minimize risks and guarantee a profit if possible. In this regard, it can be used in all sports. However, football and tennis are the most popular options for hedge bets.

Hedge betting reduces risk, but it can also cut into potential profits. If your original bet was solid and the odds remain favorable, hedging might lower your overall returns unnecessarily. Whether to hedge or not depends on your risk tolerance, confidence in your original bet, and personal goals.

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