How To Hedge Your Bets in Sports Betting

Hedging is a common term in the finance world but it is also a term commonly used in sports betting, which refers to placing additional bets to reduce or eliminate the potential losses from an initial bet. Essentially, hedging involves placing a second bet on an event with the intention of balancing or reducing the potential risks associated with the initial bet. This strategy is often used by experienced bettors to minimize their losses and increase their chances of earning a profit.

There are several scenarios in which it may be beneficial to hedge your bets. One such scenario is when you have placed a bet on an event with a high potential payout, but as the event draws closer, the circumstances change, and the outcome becomes more uncertain. In this case, placing a second bet on the opposing outcome can help to reduce the potential losses from the initial bet, even if it means sacrificing some potential profits.

Example #1:

  • You place a $100 wager at -210 for Team A Moneyline (Profit $47.62)
  • Team A's best player gets hurt in practice. Team A is now +150 and Team B is -120.
  • You place a $30 wager at -120 for Team B Moneyline (Profit $25)
  • If Team A wins you still profit $17.62 ($47.62 - $30)
  • If Team B wins your loss will be -$45 rather than -$100 ($100 - $55)

Another scenario in which hedging may be beneficial is when you have placed multiple bets on different outcomes of the same event. In this case, hedging can be used to ensure that you make a profit regardless of the final outcome. By placing additional bets on specific outcomes, you can create a situation where you will earn a profit no matter which outcome occurs.

Example #2

  • Initial wager is $100 on a parlay
  • You have a 4-leg parlay with a potential profit of $777.24
  • You have won 3 legs of your parlay so far with one game remaining
  • You have Team A to win for the last leg of your parlay
  • Team B Moneyline is +230
  • You wager $200 at +230 for Team B Moneyline (Profit $440)
  • If Team A wins you profit $577.24 ($777.24 - $200)
  • If Team B wins you profit $340 ($440 - $100)

Most major sportsbook have the option to cash-out as well if you want to take your money early with less profit.

When it comes to hedging bets, it is important to remember that there is no one-size-fits-all approach. The decision to hedge should be based on careful consideration of the potential risks and rewards associated with each bet. While hedging can be a useful tool for minimizing losses, it can also limit your potential profits. As with any betting strategy, it is important to do your research, understand the odds, and make informed decisions based on the available information.

Move on to the next topic: How to Tease Your Bets