Hedging Calculator

Written by: Brian Webb
Fact checked by Alex Windsor  
Updated: June 17, 2024

Even the most confident sports bettors know that any prediction can fail. To mitigate a portion of the risk involved in betting, experienced gamblers rely on “hedging” strategies. To hedge a bet means to place an opposing wager against the initial wager, simultaneously betting on polarized outcomes to increase the likelihood of scoring a profit.

Bet Details - use decimal odds

Commission

You should lay
£ 0
To guarantee this profit
£ 0
Total Staked
£ 0
Guaranteed Return
£ 0

Wins

Back Profit
£ 0
Lay Liability
£ 0

Losses

Lay Profit
£ 0
Back Liability
£ 0

The main issue in hedge betting revolves around putting the opposing bet prices on a scale and determining how much money should be investing into each wager for a guaranteed return.

We present you our hedging calculator, a simple free-to-use tool that can help you instantly determine the optimal size of your hedge wagers, estimated profits, and return on investment expressed in percentages.

Users of our hedge calculator tool only need to input the original stake and odds for both the original and hedge outcomes while the software will do everything else.

Using Our Hedging Calculator

The hedging calculator tool is divided into the data table and the summary. Below, we will dissect each feature of this software and provide a detailed guide on how to use it.

Data Table

The data table allows you to choose your preferred odds format (American or Decimal), state your initial stake and input the odds for the desired outcomes.

In the “Original Wager” section, you should input the amount of cash you would normally wager on the desired outcome without worrying about the hedged bets. For example, if you believe team A will win your chosen event and want to bet £50 on that outcome, simply type “£50”.

American odds are selected by default, so if you prefer the decimal format, just tap “Decimal Odds”, and the calculator will automatically convert the remaining fields.

The following two fields relate to original and hedge odds. The “original odds” are the odds for the main outcome you are betting on; this is usually the riskier and potentially more rewarding event of the two.

The “hedge odds” are the odds for the secondary event meant to cover your losses if your prediction for the original outcome was incorrect. These odds are ideally placed on events with multiple contesters where the original bet is wagered on the favourite and the hedged bet on the second favourite.

Summary Screen

The “summary” screen will be displayed as soon as you tap “Calculate”. It will list the amount of money you need to place on your hedge bet for a guaranteed profit, your total wager, and estimated returns.

The “hedge amount required” calculates the optimal secondary bet based on the odds you’ve previously provided. For example, if you are betting  £50 on a primary outcome with the odds of 4.5 while the hedged outcome has odds of 5.5, you will need to place £40.91 on the second event to guarantee a profit of £134.09.

Your “total wager” is the sum of your initial stake and hedge bet stake. In the example above, you initially wagered £50 on the main outcome, and £40.91 on the second, leading up to £90.91 in total stakes.

The ROI (return on investment) is calculated by dividing your total profits by the total bet costs. In this case, your winnings of £134.09 are divided by the total wagered sum of £90.91, which results in a 1.48% return on investment.

Formula of our Hedging Calculator

This tool operates on a simple principle. It puts the stake and odds of the main outcome on one end, and the odds of the second outcome on the other.

The price of the hedged bet is the missing link, which is calculated by simulating numerous wagers with the provided odds until a guaranteed profit is reached.

How Our Hedging Hedging Tool Can Help You

One of the vital aspects of hedge betting is determining the exact amount of money required to ensure a profit if the initial wager fails. If you bet too little with the bookie, you may end up losing money; if you bet too much, the hedged bet is no longer securing your primary stake but presents a risk of additional losses in itself.

Our hedging calculator tool was designed to help you accurately and rapidly determine optimal stake sizes for your chosen betting outcomes. This free betting calculator is just one of many we have available on the site to use for free.

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FAQs

  • What is hedge betting?
    A hedge bet is a form of insurance bet placed against the main outcome, helping players break even or make profits if the primary wager loses.
  • Do hedge bets guarantee a profit?
    Hedge bets mainly exist to mitigate as much risk as possible. They are very likely to provide returns but do not guarantee success.
  • Which betting types work best with hedging?

    Hedge bets are ideal for sports events with multiple contesting teams (e.g. futures in basketball), but they also work well with straight and spread betting types.

Brian is the owner of BettingTools, he has decades of experience in horse racing betting and the best ways to utilize betting tools and calculators. Brian’s vision is to provide a comprehensive resource for bettors, offering sophisticated tools combined with expert advice to enhance betting strategies. He has a passion for horse racing and soccer and a commitment to helping others gain knowledge and succeed in sports betting.