- Hedge betting is a sports betting strategy that most bettors are at least vaguely aware of. This doesn't mean that they all fully understand how to use it effectively or that they know why and when they should consider hedging a bet. As a result, the strategy is often used incorrectly or for the wrong reasons.
- Hedging a bet means placing a bet or bets on a different outcome or outcomes, subsequent to an original bet, in order to create a situation where there is a guaranteed profit whether the original bet wins or loses. For example, say a $100 bet with even odds was placed on the Green Bay Packers to win vs the New England Patriots.
- WHAT IS HEDGING A BET? The origin of the phrase 'hedging a bet' came from an actual hedge, which is a fence or boundary that encloses a piece of land. The hedge, which determines an area's limits, inspired the idea of limited risk. It also gave rise to the phrase 'hedging your bets,' a strategy to reduce one's wager risks.
If you think winning a 10-team parlay is a dream come true for most bettors, you would be spot on. However, the chances of that happening are slim to none, making it not a very realistic goal for serious bettors to reach. The dream scenario for most bettors is to find themselves in a position where they are guaranteed a profit regardless of what actually happens in a game they bet on. When a bettor has a chance to 'hedge' their bets and turn a profit, they can consider the time spent handicapping well worth the investment.
What Does It Mean to Hedge a Bet?
When you hear someone use the phrase 'hedging a bet,' they are referring one of two definitions. The first is a situation where a bettor would cover their tracks and place a wager on the opposite team in order to limit how exposed they are in a particular game. Let's jump right into an example to help explain.
Hedge one's bets Fig. To reduce one's loss on a bet or on an investment by counterbalancing the loss in some way. Bob bet Ann that the plane would be late. He usually hedges his bets.
Let's say you decide to bet the NBA's Bucks at -140 on the moneyline but during pre-game warmups, Giannis Antetokounmpo suffers an ankle injury and is no longer able to play. Instead of letting your original bet play out and test your luck with the likes of the Bucks' supporting cast, you would bet on their opponent, the Raptors, at +130 for the same amount as your original bet. So now you're left with a win-win situation, in which the only risk you have is the vig on your bet .
Why Would a Bettor Hedge a Bet?
What Does It Mean To Hedge A Bet Stand
When you make a bet of any kind, you are exposed. You are exposed to the potential loss of the amount that you have wagered on one or multiple games. But this is what gambling is - it's exposing your bankroll in order to see a return on your investment. However, situations do arise where a bettor is no longer comfortable with how exposed they are on a certain game. Something about the game has changed - perhaps the weather has worsened, or maybe a key player has been injured in the pregame warmup. Maybe you bet early and since placing your bet the coach has been fired or there has been a suspension handed out or there were travel issues. Whatever the case may be, a bettor will hedge their bet in order to limit the damage to their bankroll should things go sour between the time they place the bet and the time the game actually starts. This is damage control.
The second definition of 'hedging' is a situation where a bettor can guarantee themselves a profit. This is done almost exclusively when a bettor has a solid future bet in place that has the potential to win. Let's say, for example, you bet $100 on the Los Angeles Dodgers to win the World Series at 12/1 before the season started. If the Dodgers make the World Series, you have two options. You could let your $100 bet ride and stand to win $1200 or you can bet on their opponent, the Red Sox, at +150 to win the Series. Let's say you bet $600 on the Red Sox and if they win, you would win $900 and lose the original $100 you bet on the Dodgers for a profit of $800. If the Dodgers were to pull off the victory, you would lose that $600 bet on the Sox, but make $1200, for a profit of $600. This is a perfect scenario where you can ensure yourself a small profit rather than nothing at all.
Advantages and Disadvantages of Hedging
Both the advantages and disadvantages of hedging your bet is really straight-forward. The main advantage of this strategy is that it offers the bettor a great deal of flexibility in managing the level of risk you are exposed to. If you are extremely close to landing a big payout via parlay, hedging affords you the opportunity to play it safe and ensure a profit is guaranteed. Furthermore, if you stand to make a loss on a wager and no longer want that exposure, you can hedge and reduce the number of units that will be lost.
The disadvantages of hedging are kind of hidden in the fact that just because you have the ability to reduce a potential loss, you are still guaranteed to take that loss. Just because you hedge and take a small win, you are still sacrificing the potential profit from the original wager. Using hedging to guarantee profits also has an associated cost as you are effectively paying a premium from your potential profits to cover the other side of your wagers.
How to Hedge a Parlay Bet
If you are a parlay player, there is a scenario where 'hedging' could be used to lock in a profit at the tail end of a parlay. Let's say you bet a five-team parlay and the first four games have won. Instead of sweating out that final west-coast game between the A's and Mariners, you could simply make a bet on the other team in the final game of your parlay. By making an aggressive enough bet, you could make it so that your winnings would be the same regardless of the actual result. If the payout of your original parlay isn't large enough to consider 'hedging your bet', then you have to wonder if this kind of bet is a bet you should have made in the first place, given what we know about true odds.
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In life, when someone hedges a situation they are limiting their exposure to the downside. In day to day life, someone can hedge many things.
When someone hedges in sports betting they are limiting their exposure to a potential financial loss. Hedging a bet is an advanced strategy used by sports bettors to either reduce the risk of a wager or to guarantee a profit of some kind from a wager.
Similar to middling a wager, hedging is a strategy that involves placing wagers on the opposite side of your original bet. As futures bettting has become more popular, so has hedging. New sports bettors might have heard about the sports betting risk management strategy in mainstream media.
What Does It Mean to Hedge a Bet?
When you hear someone use the phrase 'hedging a bet,' they are referring one of two definitions. The first is a situation where a bettor would cover their tracks and place a wager on the opposite team in order to limit how exposed they are in a particular game. Let's jump right into an example to help explain.
Hedge one's bets Fig. To reduce one's loss on a bet or on an investment by counterbalancing the loss in some way. Bob bet Ann that the plane would be late. He usually hedges his bets.
Let's say you decide to bet the NBA's Bucks at -140 on the moneyline but during pre-game warmups, Giannis Antetokounmpo suffers an ankle injury and is no longer able to play. Instead of letting your original bet play out and test your luck with the likes of the Bucks' supporting cast, you would bet on their opponent, the Raptors, at +130 for the same amount as your original bet. So now you're left with a win-win situation, in which the only risk you have is the vig on your bet .
Why Would a Bettor Hedge a Bet?
What Does It Mean To Hedge A Bet Stand
When you make a bet of any kind, you are exposed. You are exposed to the potential loss of the amount that you have wagered on one or multiple games. But this is what gambling is - it's exposing your bankroll in order to see a return on your investment. However, situations do arise where a bettor is no longer comfortable with how exposed they are on a certain game. Something about the game has changed - perhaps the weather has worsened, or maybe a key player has been injured in the pregame warmup. Maybe you bet early and since placing your bet the coach has been fired or there has been a suspension handed out or there were travel issues. Whatever the case may be, a bettor will hedge their bet in order to limit the damage to their bankroll should things go sour between the time they place the bet and the time the game actually starts. This is damage control.
The second definition of 'hedging' is a situation where a bettor can guarantee themselves a profit. This is done almost exclusively when a bettor has a solid future bet in place that has the potential to win. Let's say, for example, you bet $100 on the Los Angeles Dodgers to win the World Series at 12/1 before the season started. If the Dodgers make the World Series, you have two options. You could let your $100 bet ride and stand to win $1200 or you can bet on their opponent, the Red Sox, at +150 to win the Series. Let's say you bet $600 on the Red Sox and if they win, you would win $900 and lose the original $100 you bet on the Dodgers for a profit of $800. If the Dodgers were to pull off the victory, you would lose that $600 bet on the Sox, but make $1200, for a profit of $600. This is a perfect scenario where you can ensure yourself a small profit rather than nothing at all.
Advantages and Disadvantages of Hedging
Both the advantages and disadvantages of hedging your bet is really straight-forward. The main advantage of this strategy is that it offers the bettor a great deal of flexibility in managing the level of risk you are exposed to. If you are extremely close to landing a big payout via parlay, hedging affords you the opportunity to play it safe and ensure a profit is guaranteed. Furthermore, if you stand to make a loss on a wager and no longer want that exposure, you can hedge and reduce the number of units that will be lost.
The disadvantages of hedging are kind of hidden in the fact that just because you have the ability to reduce a potential loss, you are still guaranteed to take that loss. Just because you hedge and take a small win, you are still sacrificing the potential profit from the original wager. Using hedging to guarantee profits also has an associated cost as you are effectively paying a premium from your potential profits to cover the other side of your wagers.
How to Hedge a Parlay Bet
If you are a parlay player, there is a scenario where 'hedging' could be used to lock in a profit at the tail end of a parlay. Let's say you bet a five-team parlay and the first four games have won. Instead of sweating out that final west-coast game between the A's and Mariners, you could simply make a bet on the other team in the final game of your parlay. By making an aggressive enough bet, you could make it so that your winnings would be the same regardless of the actual result. If the payout of your original parlay isn't large enough to consider 'hedging your bet', then you have to wonder if this kind of bet is a bet you should have made in the first place, given what we know about true odds.
Doc's Sports is offering $60 worth of member's picks absolutely free - no obligation, no sales people - you don't even have to enter credit card information. You can use this $60 credit any way you please for any handicapper and any sport on Doc's Sports list of expert sports handicappers. Get $60 worth of premium members' picks free .
In life, when someone hedges a situation they are limiting their exposure to the downside. In day to day life, someone can hedge many things.
When someone hedges in sports betting they are limiting their exposure to a potential financial loss. Hedging a bet is an advanced strategy used by sports bettors to either reduce the risk of a wager or to guarantee a profit of some kind from a wager.
Similar to middling a wager, hedging is a strategy that involves placing wagers on the opposite side of your original bet. As futures bettting has become more popular, so has hedging. New sports bettors might have heard about the sports betting risk management strategy in mainstream media.
If nothing else, hedging a bet has become a popular discussion point for any occasion when a sports bettor has a futures wager pending that could result in a large win. Hedging a bet is a way to guarantee at least some kind of win.
While there's mainstream media coverage about hedging a wager, there isn't much mainstream information on how to hedge a bet.
What is hedging a bet?
Hedging a bet is a strategy in which a bettor will place a second wager against the original bet when they're unsure that the outcome of a wager will be a win.
Even if a bettor thinks they might win, they could decide to hedge a bet just to be safe and guarantee they walk away as a winner. The win won't be as large but the additional wager is a way to create some kind of insurance if the original wager loses.
Hedging is a useful strategy even though betting on all sports isn't the same. Futures wagers are long term bets that use a moneyline. Some individual games use a point spread while betting on other sports may involve a moneyline.
A bettor can hedge against any of these types of wagers. This strategy allows the bettor to walk away as a winner or less of a loser if they choose.
How to hedge a bet
Hedging a bet isn't difficult. However, the concept isn't at the forefront of everyone's mind when placing a wager. Hedging a bet is protecting some kind profit that was — and still may be — possible from an original wager.
Hedging a bet is done by placing a second wager against the original wager that will guarantee that the bettor sees some kind of profit at the end of the event. A bettor can hedge a future bet or hedge individual games. Here's an example of hedging a futures bet:
What Does It Mean To Hedge A Bet Look
Original wager: $100 futures bet on the New York Jets to win the Super Bowl at 60-1.
- Potential win: $6,000 + original $100 wager.
- Hedge: $1,000 wager on Los Angeles Rams to win the Super Bowl at 2-1 when they face the Jets in the Big Game.
- Best result: Jets win the Super Bowl and bettor wins $6,000. The $1,000 hedge on the Rams for safety is a loss. The total win is $5,000 instead of $6,000.
- Hedge win result: Rams win and the bettor wins $2,000. After everything, the $1,000 hedge minus $100 original wager gives a final win of $900.
- Worst result: No hedge and Rams win. $100 wager and the potential $6,000 win is completely lost.
This example shows that a hedge on a futures bet is still a profitable wager. The hedge protects the bettor from losing the entire potential profit from the wager.
Hedging a bet means the original bet isn't as profitable as it could be. However, winning something is better than losing everything. That's the purpose of hedging a wager.
This example also shows that everything risked (the original $100 wager and $6,000 potential win) is lost without hedging.
Some bettors don't mind losing the $100 wager and potential profit. There are other bettors that prefer to walk away with some kind of profit after waiting an entire season.
Other times to hedge a bet
Hedging a futures bet used to be the only time this strategy was discussed. Sports betting trends in the US are changing and so is how bettors use this strategy.
In Play wagering makes it easier to hedge against an existing pre-game wager that looks shaky. In the past, bettors had to wait until the middle of a game to place a halftime wager.
Parlay betting continues to become more popular every year. Bettors are now using the hedging strategy to ensure a win. A bettor will place a hedge on the final game of a multi-leg parlay to ensure some kind of positive result from a wager.
Depending on the amount of the original wager, a bettor might choose to hedge a little so they can mitigate a loss. Losing is never fun but losing less is better than losing everything risked.
Hedging a bet is a useful tool for any sports bettor. Gambling on sports does not have to be about winning or losing a wager. There are multiple strategies to use where a bettor can guarantee some kind of profit on certain wagers.
ALSO READ: Sports Betting Lesson: When It's Smart To Hedge Your Bet