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Most people get into betting for two reasons; the fun of it all and the potential cash they can make from it. But there is one problem. Winning is never guaranteed, and losses can quickly take the fun out of betting.
This is why it’s impotent to be aware of as risk-mitigating strategies that support your goal of a risk-free profit.
One of these is hedge betting.
What Is hedging A Bet?
In day-to-day life, when someone hedges something, they are attempting to limit their exposure to negative outcomes. This principle can be applied in many situations in ordinary life, and betting is no exception.
A hedge is a strategy that allows bettors to minimize their risk and guarantee a profit. This method is a bit advanced and is primarily used by pro bettors. This is something you can try out as a new bettor, and you can even use a hedge calculator to compute potential profits and losses. Hedging is very similar to middling a wager, which involves placing wagers on opposite sides of your original bet, to get a risk-free bet.
New bettors will often hear about this strategy from mainstream media, albeit with very little information on the ins and outs of the system.
So What Exactly is Hedging A Bet?
When hedging a bet, a bettor will place a second wager against their original bet. This is done when there is doubt that the outcome of the original bet will end with a win.
At times, bettors can also hedge bets where they think they might win but where they still need to guarantee a win. The win from a hedged bet is often not significant, but it creates additional insurance should be original wager lose.
Should You Hedge A Bet?
Well, it depends.
If a situation calls for it, you should hedge a bet. This strategy helps ensure you walk away as a winner or at least less of a loser. This strategy is convenient for bettors that only want a positive outcome and would rather not risk a loss.
Either way, remember that you will still pay vig to your sportsbook. This will ultimately reduce your profit ceiling.
For bettors keen on their original wager and are okay absorbing some losses occasionally, then there is no reason to hedge.
The Benefits Of Hedge Betting
Essentially, bettors hedge bets to;
· Guarantee profits
· Enjoy lower variance and risk
· Account for prediction changes
How To Hedge A Sports Bet
Hedging a sports bet is not all that complicated, though it’s not always on everyone’s mind when placing a wager. However, bettors can hedge a futures bet or individual games.
As you already know, hedging a bet is placing a second bet on an original bet to ensure you don’t walk away with a complete loss.
Here is an example of how to hedge in-play.
In-play bets are also known as live bets. Most online betting sites today allow these types of bets, which allow bettors to place bets on games that have already started.
The hedging strategy can be very useful in these scenarios because a game can start taking a different direction than you had anticipated.
For a hedging example, let’s use a fictional tennis match between Raphael Nadal and Fernando Verdasco. In this example, the odds with your bookmaker are:
Raphael Nadal 1.40
Fernando Verdasco 2.80
You think Nadal will take the day, so you wager $100 to place a bet on him winning. This is the original bet amount.
As you watch the match, it quickly becomes clear that Nadal is not in his best form. At this point, you begin thinking that Verdasco will win. you sign back into your bookmaker, and the odds look like this:
Raphael Nadal 1.60
Fernando Verdasco 2.30
Nadal is still the favorite, but Verdasco is closing in. So to hedge this bet, you place a bet and wager $50 on Verdasco.
At this point, you have staked $150 on this game. Consequently from this example;
· Your total payout is $140 if your original bet wins (Nadal) you will also lose $10
· You win $ 115 and lose $35 should Verdasco win
In the above, you will have minimized a $100 loss significantly. But it doesn’t end there. If Nadal’s game picks up and he wins, you have lost the $50 you wagered on Verdasco. But, on the other hand, if Verdasco wins, you will have saved yourself $65. The second bet is a live bet, and hedging will have helped guarantee profit.
Hedge Betting Strategies And Tips
When hedging bets opportunities come along, you want to be able to quickly evaluate their value and bet odds and take advantage of those that guarantee profit.
Here are some tips to help you do make a profit each time and avoid some costly mistakes.
Be Financially Prepared To Hedge
Hedging means you wager twice on the same game. Your bankroll must support this. If you want to hedge against a huge futures underdog bet, you need to have significant funds to pull this off profitably.
Funds for hedge bets should be available over and above your funds for regular bets.
Create A Plan In Advance
While you can hedge on a whim for entertainment purposes and clear a profit, this is not the best way to go about it.
Often, bettors will make a wild underdog or crazy futures bet that is fun to place but has a very slim shot of winning. Once it starts losing, then a quick hedge bet is made.
Instead, have an idea of whether or not you would want to hedge a bet, as you are planning the initial bet and the point at which you would like to do it.
This means you have a contingency plan if things start going wrong instead of hedging in a panic. Always look at the total bet as one unit.
Quadruple Check Your Math And Win Requirements
Before hedging, it’s essential to run your calculations severally pre game. If you work with the wrong figures, things can get expensive pretty quickly, and you could lose money you had not accounted for.
Do your math manually, or using a hedging calculator and recheck the figures before spending any money on a specific event outcome.
Confirm Both Parameters Beforehand
Aside from your calculations, confirm the parameters of each bet. You need to be 100% clear on which actions you need to take to win your initial bet (hedge odds). You can use a hedge betting calculator for this.
Are you making the correct hedge against the original bet? Without clarity on this, you might be making a crazy bet that doesn’t have any hedge. The total bet needs to make sense.
Disadvantages of Hedging A BET
Unfortunately, there are no perfect systems and strategies for betting. While hedging has its advantages, it’s not a perfect system either.
Some disadvantages of hedging are:
· The market can shift against you after hedging, which leaves you exposed
· Finding profitable hedging opportunities is time-consuming
· Hedging is two bets in one, each with its own wager. This requires more cash
· A hedge requires you to give up potential profits to mitigate risk
Hedging: Yay Or Nay?
If executed properly, hedges are a great way to help ensured consistent guaranteed profits regardless of the specific outcome of a sporting event.
Protecting your wagers when they are close to a win or when the unexpected happens is essential in this regard.