The term ‘hedge your bet’ first came about many years ago when George Villiers, the 2nd Duke of Buckingham, used the phrase during a play.

That’s all very interesting, but how do you hedge a bet? Is hedging bets illegal today? Can it help cover lost bet games? How do you use a hedge bet calculator? Many questions need to be answered, and we have the information you need.

Hedging bet or bets is common in modern gambling and refers to a bet with reduced risk and potentially guarantees a profit. Although that’s not always the case, and you should still practice caution when you hedge a bet.

We will explore what is hedging a bet and provide a hedging your bet example or two. This will leave our readers with a clear understanding of the hedge your bets meaning. As a result, you will become a better-informed and, hopefully, more profitable bettor by the end of the page.

What is Hedging?

What does hedge your bets mean? Let’s find out the hedge bets meaning. Hedge bets reduce the risk of losing all or part of your stake in betting on professional sports. Hedging a bet has the power to do this, and that’s why it has become so popular in the online betting era.

How does hedge betting work? Knowing and understanding hedge bets meaning will improve your success rate and overall profits.

Do you know someone who has hedged his bets? Let’s look at an example of how to hedge my bets when gambling and the odds have: Shortened after an initial bet or drifted after an initial bet.

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By using this strategy, bettors will minimize the risk of their bet and reduce any possibility of a nasty surprise. It’s important to take note of the odds throughout the period leading up to the payout. If you miscalculate the stake needed to hedge your bet, you could end up stuck in a hole, clambering to get out. Don’t let that happen.

Hedging Bets for Profit

Hedging Bets for Profit

Why do we place bets on our favourite sports? For excitement, drama, and to target a profit. Also true when hedging your bets.

The principle of placing bets on various outcomes produces a result that pays out to the bettor regardless of whether the original bet wins or loses. This is what all bettors aspire to find when employing their betting strategy.

Hedging a bet is only possible as we see a shift between opening and closing odds. Changes in the odds open up for hedging bets, meaning the potential loss is outweighed by the perceived gain elsewhere. This is why we see the term “Hedge fund” used on Wall Street today.

Limit your losses

As we see in many betting systems, it’s not the perfect system. But losses can be mitigated, allowing profits to be made, but losses can be made in numerous areas of a bet. There’s always a risk.

This could be done in an NBA game or any other fixture with more than one outcome. Place a bet on Team A to win at the odds you want, and then gamble the right amount on Team B to win. You are now in profit, regardless of the result.

Examples of Hedges Bets

So if you’re line shopping and decide to hedge your bet on one particular market, we’d advise going with a mainstream sports market like the NFL.

What does hedge your bets mean? For example, a bettor places $100 on the Colts to win the Super Bowl before the season begins at +350. The bettor would have a strong chance of winning if they made it to the Super Bowl that year.

So in this situation, the bettor is unlikely to win the bet, as they are still outsiders in a strong league.

This situation presents the bettor with the opportunity to hedge their bets by backing the other Super Bowl team, the Steelers, to win the game. If the Steelers are +150 to win the title, $100 will yield $250.

Regardless of the outcome, the bettor will make a decent profit, having hedged his bets on both teams at the Super Bowl. It’s important to remember in this situation to back the Steelers to lift the trophy, not just to win the game.

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Hedge your bets on all sports

While we’ve provided examples of hedge betting for the sports betting, it is common in various sports. We can hedge our bets on almost anything. Let’s take a less common example of Champions League soccer matches.

  • A bettor places $100 on Manchester United to win the Champions League as a future bet at `+350. The bettor may hedge their bets on the day of the final, covering themselves by hedging their bets on the other team Bayern Munich.

You can hedge your bets on every sport and fixture. Although it isn’t as simple as simply backing each possible outcome to guarantee a profit. It’s similar to arbitrage betting – which you can read more about elsewhere on this site – but not identical. It’s important to understand the differences.

Each bet must be placed at the right time and to the best odds available. If the odds aren’t right, hedging could become an expensive mistake. Don’t enter into this lightly.

How Sportsbooks Hedge bets

 

How Sportsbooks Hedge bets

We now understand better how to hedge sports bets and the hedging a bet definition. But did you know online sportsbooks regularly allow customers free reign when they want to start hedging a bet? That’s because they do it themselves. This means they can limit their risks and maximize profits. They do this by positioning themselves to make money by limiting the damage of big wins from punters.

By laying off large amounts of their liabilities, bookmakers can ensure that the money doesn’t flow out of their funds – the sportsbook’s bankroll management! Bettors should also practice helping avoid the risks of a gambling problem.

Insurance policy

It acts as a kind of insurance; oddsmakers use the money they have taken in bets and use it to hedge their bets against potential losses. Let’s say you have a big bet on a selection in a two-runner contest and stand to land a huge profit if you are correct.

That will have the bookies worried. They will accept your big bet, as that’s what they do, but will use some of your stakes to hedge their bets with another bookie. That means the bookie will keep your stake minus the amount they hedged with another bookie, regardless of the outcome. Or they could limit their losses if your wager proves to be shrewd.

Types of Hedging Bets

While we see players make hedge bet wagers all the time, we will include two other ways below with examples to make things clear.

The sports betting industry is evolving and changing; as such, we try to ensure our readers get the full picture and know what they’re doing when they start wagering online.

Like this article covering the hedging a bet definition, others on this site give all the information needed to enjoy this unique but exciting form of sportsbook gambling. You can enjoy this betting anywhere, from New York to Las Vegas. It would help if you always looked for hedging opportunities at online sports betting apps.

Some bookies give a promo code when you try hedge betting for the first time. This opens the door for many specials and bonuses, including a risk-free bet or a profit boost on the amount of money you could win.

Frank Lorenzo
Frank Lorenzo
MTS Co-Founder
Geoff Johnson
Geoff Johnson
MTS Co-Founder