A Hedge in sports is a way for you to ensure safety when betting. Share strategies and ways to successfully prevent betting from specific examples for readers’ reference.
What is Hedging a bet?
The term “hedging” has crept into the consciousness of many sports bettors. Both casual and seasoned bettors have started using the term in their daily betting strategies or for futures betting strategy.
Hedging betting is the act of placing a second bet to ensure a profit or minimize potential loss. Typically, hedging involves placing a second bet compared to your initial bet. You may not win a lot when hedging, but you can use hedging strategies to lock in a smaller win or minimize a large loss.
Hedging usually takes the form of a second bet after your initial bet has played out to some extent. The ultimate goal of hedging in sports betting often includes one of the following:
- Ensure profits by covering all possible outcomes
- Minimize losses by betting on the other side of a bet that is currently losing
In fact, hedging your bets isn’t difficult, but it does require careful attention to your bets. For example, if you initially bet on a handicap winning team, you will need to watch the match carefully, noting how the odds fluctuate as the match progresses. Hedging your risk requires you to stay up to date with the latest developments related to your bets.
Easy-to-understand example of using hedging betting in Sports
Let’s start with a simple hedging bet example using moneyline bets.
- Boston Celtics: +110
- Miami Heat: -130
Start with a $10 bet on the Celtics, and you’ll make $11 in profit if they win. But as the game went on, the Miami Heat were able to take the lead late in the third quarter, putting them up 85-70. At this point, the Celtics bet doesn’t look very promising. The Heat’s odds will drop a lot, probably in the -500 zone.
You can place a bet of $25, with a potential payout of $5. That way, if the Heat win, you’ll still get $5 back, making up for half of the $10 you originally bet on the Celtics.
Of course, the Celtics could come back and win (albeit unlikely), making this hedge inherently risky.
There are a number of other examples where hedging is even more beneficial. Let’s take the example of a parlay bet with 4 options:
- Chicago White Sox -196
- Boston Celtics +2: -110
- Dallas Mavericks: +176
- Arizona Diamondbacks: +198
This parlay has total odds of +2271. A bet of $1 will win you $22.71. Then, let’s assume that the White Sox, Diamondbacks, and Celtics bets are all right. The Mavericks game is coming up and you just need them to win for your parlay bet to pay.
You can hedge by betting on the Mavericks’ opponents to win. In this case, the odds of the Golden State Warriors are set at -210. You can hedge by placing a $5 bet, earning $2.38 for a win. Here are the possible outcomes after you have taken precautions:
Mavericks win: your parlay bet wins and you receive $22.71 from the W88 bookie and your hedge bet loses $5. The total profit is then $16.71 (winnings minus the initial parlay).
Warrior wins: your cross bet loses, but you win $2.38 and your total profit is $1.38. This is a small win, but you’re still not at a loss.
Read More: What is In-Play Betting
Conclusion
The biggest advantage of hedging betting is the protection of losses. Sometimes you can guarantee yourself a profit when you hedge your risk properly. Even if it’s not possible, sometimes you can still minimize big losses or break even.
If you follow smart, wise precautions, you can prevent big losses over time. Plus, the more Hedging a bet you do, the better off you’ll be. This is still betting, with a lot of luck involved. But the more you take precautions, the better your reading will be.
Related: What is Sports Spread Betting
