Hedging is a strategy that is increasingly becoming popular in sports betting. Whether you are a casual or seasoned bettor, learning how to hedge your bets is crucial since it can help keep risks to a minimum and lock in profits.
This guide will explain what hedge betting is and how it works across various types of sports bets. We have also provided some tips that will help you use this sports betting strategy effectively.
What is Hedge Betting?
Hedge betting is a sports betting strategy that sees punters wager against their original bet after doing a thorough analysis in an attempt to middle the bet and lock in profit.
Bettors also often hedge bets to cut losses when things are not going according to plan, making them uncertain of the probability of the original bet winning. You can also place a hedge bet when you feel the probability of your initial wager becoming successful has increased, but you wish to guarantee a profit regardless of the outcome of an event.
Hedge betting always includes at least two bets: the original bet and the hedge. The idea is to protect your original bet by either decreasing the chance of a loss or securing a profit regardless of the outcome of the sporting event.
To use hedge betting, you can either set up accounts with several bookies or make hedge bets at the same bookie where you have placed the original bet. You can also hedge bets at betting exchanges since they allow punters to back or lay bets.
How Does Hedging Bets in Sports Betting Work?
You can use the hedge betting strategy on any sport. However, sports with two possible outcomes, like tennis and basketball, are more popular options because it’s easier to hedge all the possible outcomes of the game, but it’s doable in sports like football as well. The most important thing to remember is that hedging is only possible when the opportunity arises.
There are three common scenarios when you can use the hedge betting strategy: with futures, in-play bets, and accumulators.
Futures Hedging
Futures allow you to bet on who will be the final winner of a competition, league or tournament. For instance, you can bet on who will win the Premier League or the UEFA Champions League. You can also place a bet on Top Goalscorer/Golden Boot.
Let’s assume that early on in a Premier League season, most bookmakers offer odds of 2/1 for Manchester City to finish top of the table and win the league. You decide to bet £200. You believe the Citizens have the strongest squad in the league, so you would like to take advantage of the high odds. If they win the league, your future bet has succeeded and you’re £400 in profit.
However, as the season goes on, you realise that Liverpool is also doing well, and it’s only a few points behind Manchester City. Although you are confident that the Citizens still have a good chance of winning the league, you want to secure profit. While you can stick to your guns and let the bet ride to a conclusion, you have the option to hedge your bet to lock in a profit regardless of the outcome.
Let’s say a bookie offers 9/2 odds for Liverpool to win the EPL after several fixtures. Here, it’s important to evaluate the chances of each team winning the league. If you think that the only team with realistic chances of winning the EPL besides Man. City is Liverpool, then you can hedge your original futures bet on Manchester City by placing another futures bet on Liverpool.
With odds of 9/2, you can place a £80 bet on Liverpool, for example. This way, you’ll win your hedge bet if Liverpool wins the title and bag £440, out of which £360 in profit, or win your original bet if Manchester City wins the title, and bag £600, out of which £400 in profit.
You’ve spent a total of £280 on both your bets, so if Liverpool wins, you’ll be £80 in net profit, and if Manchester City wins, you’ll be £120 in net profit.
In-Play Hedging
As one of the popular ways to bet, in-play betting refers to placing wagers after an event has started. In-play hedging works much like futures hedging. However, you have to be sharp, keeping your eyes skinned on the odds as they progress while the event is still going on.
Let’s look at an example illustrating how you can hedge your bets on in-play markets. You decide to place a £100 pre-match bet on Liverpool to win against Chelsea at 2/1 odds. The Reds are doing well and your pick looks strong. The game is 75 minutes in and the score is 1 – 0 for Liverpool. The odds are dropping for the Reds to win, and are now at 3/5. You have two options here. You can let the bet ride and hope that Liverpool will win. Alternatively, you can place a hedge on a draw or a Chelsea win to secure a winning bet regardless of the outcome.
Our free hedging calculator can help you figure out the amount you should place as your hedge bet.
Hedging Accumulators
To win in acca betting, all the wagers in your bet slip must be correct. The more events you add to your accumulator, the lower the chances of the bet hitting. As such, hedging your last bet makes sense, especially if your initial legs are correct. Doing this will guarantee cashing in from your parlay. The role of hedge betting is the same as placing a future bet in this scenario.
As an example, let’s say you placed a football Treble bet on three teams: Manchester United, Everton and Chelsea. You place a £100 accumulator bet at combined odds of 4.53; if your selections are successful, you can walk away with £353.
Your first two picks (Manchester United and Everton) win their games, meaning your accumulator is looking good. You can sit and wait for the last game or add some security to your bet by placing a hedge bet on Chelsea’s opponent Burnley, who are the underdogs at 7/5 (2.4), or on a draw.
You then use our free Arbitrage calculator to calculate how much you need to wager on a draw and on a Burnley win. Now you stand to earn £452.92 from your Treble bet if Chelsea wins, but even if the game ends as a draw or Burnley wins, you will still walk away with a small profit. Naturally, this decreases the profitability of your original bet.
Benefits of Hedging
Below, we have provided three benefits of hedging sports bets to help punters determine if this strategy is worth implementing.
- Guaranteed Profit: Hedge betting can help you maximise the potential for a profit. By hedging a bet (where it is possible), you are assured of making profits regardless of the outcome.
- Risk Management: You can hedge out of a bad bet if something unexpected happens. A sudden injury 30 minutes before kick-off can be a huge blow, so you can hedge out of the bet by placing a hedge bet on the opposing team.
- Emotional Relief: Instead of stressing out about the last leg of your acca, you can hedge your bet and secure a profit before the game has even started.
How to Hedge Your Bets Like a Pro
Here are some tips are some tips and strategies to help get the most out of hedge betting:
- Choose the Right Betting Markets: Futures and accumulators remain the best and easiest markets for hedging since they allow you to place bets in advance and get a price that will drop as the team progresses. You are more likely to get the biggest margins, and it is easier to structure your hedge.
- Shop Around for the Best Odds: Before placing your bet, it is advisable to compare odds across multiple bookies. Doing this will allow you to get the best price and lock in larger profits whenever you decide to hedge sports bets.
- Balance Your Bets: Avoid targeting the same amount of profit on all results. Doing this can limit the profit potential of your bets. You should consider the odds and the probability of the result and use a hedge wager to cover as little as the original stake, or make it such that the payout on all results is the same.
FAQs
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How can I calculate the size of my hedge wagers?The easiest way to determine the amount to hedge is to use our free hedging calculator. It is designed to ensure your bets are optimally balanced, so you can break even, minimise the loss, or guarantee profit depending on the outcome. To use the calculator, insert the original stake and odds of your bets, and the calculator will show you how much you need to wager on your hedge.
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Which sports are suitable for hedging?Almost all sports are suitable for hedging, but the most popular are football, tennis and basketball. Ideally, you would want to hedge bets where there are only two possible outcomes.
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What factors should I consider before hedge betting?
Before using hedge betting, it is crucial to consider the odds and potential event outcomes. You should calculate whether a hedge is viable, and determine whether you want to reduce the risk and guarantee a smaller profit or trust your original instinct and stay with your original bet.
