How to Hedge A Sports Bet?

BY markoh April 14, 2023

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Sports Betting Strategy

By taking out a “hedge,” an individual protects themselves from potential losses. The ability to hedge is helpful in many situations.

In sports betting, hedging reduces the risk of a loss by betting against yourself. Bet hedging is an advanced tactic sports gambler employ to lessen the impact of losses or ensure a return on investments.

Hedging is a method in which you bet on the opposing side of your original bet, similar to middling a bet. With the rise of futures betting, hedging has also gained popularity. Sports betting risk management is a concept that may have been introduced to neophyte gamblers through various media outlets.

When a sports bettor has a significant potential future win, “hedging a bet” often comes up for debate. If you hedge your wager, you increase your chances of winning by a small amount.

Although hedging a bet is frequently discussed in the mainstream media, there is little information on the subject.

HEDGING A BET: WHAT IS IT?

If you’re not sure about the result of your wager, you can “hedge” your bet by placing a second bet opposite your first.

A bettor may hedge a bet even if they have some reason to believe they will win to increase their chances and possibility of success. An extra wager can be made as insurance against losing the first stake, albeit the resulting payout will be less.

Even if sports betting isn’t uniform, hedging is still a good tactic to have in your back pocket. Long-term moneyline wagers are known as futures. In sports betting, the point spread is utilized and favored in some games, while the moneyline is preferred in others.

A bettor has the option of hedging against any of these bets. The bettor can come out ahead or at least not lose as much with this technique. However, keep in mind and remember that you will have to pay vig to the sportsbooks again if you want to place a second bet on a hedge, which will reduce your maximum possible return.

TIPS ON BET HEDGING

It’s easy to hedge your bets. However, only some people consider this idea before making a bet. To hedge a bet is safeguarding a potential financial gain from an initial stake.

To hedge a bet is to make an additional stake against the initial one, ensuring the bettor will appear ahead after the event. One can hedge their bets for the future or certain games. A hedging example for a futures wager might be as follows:

  • Original bet: $100 on the New York Jets to win the Super Bowl at 60-1 odds.
  • Potential winnings: $6,000 plus the original $100 wager.
  • Hedge: Place a $1,000 bet on the Los Angeles Rams to win the Super Bowl 2-1 when they meet the New York Jets in the big game.
  • Best result: The Jets win the Super Bowl, and the bettor earns $6,000. The $1,000 safety hedge on the Rams is a loss. Instead of $6,000, the total price is $5,000.
  • Hedge win Result: The Rams win, and the bettor receives $2,000. After all, is said and done, the $1,000 hedge minus the $100 initial wager results in a $900 victory.
  • Worst case scenario: no hedge, Rams win. The potential $6,000 reward is fully squandered with a $100 wager.

Here we see that even with a hedge, a futures trade can turn a profit. The hedge prevents the bettor from losing all the money that may have been won on the bet.

When you hedge, you reduce the potential gain from your initial wager. However, it’s preferable to win some then lose all. That’s why you should hedge your bets.

With hedging, the gambler, in this case, can maintain both their initial $100 bet and the future $6,000 payout.

Some gamblers can afford to lose the $100 and still have fun. Some punters would rather wait a season and come out ahead than lose everything.

HEDGE BETTING IN OTHER SITUATIONS

The only time this tactic was ever mentioned was when people were talking about hedging a futures bet. This tactic is evolving alongside the shifting tides of American sports betting.

You may protect yourself from a potentially losing pre-game wager by making an In-Play bet instead. Halftime wagers were formerly only available throughout a game.

Every year, parlay betting gains more and more adherents. Hedging is currently widely used by gamblers as a failsafe tactic. A bettor often places a “hedge” on the final game to guarantee a win on a multi-leg parlay.

A bettor may opt to hedge to reduce the impact of a loss, the size of which is determined by the original wager. Losing is never enjoyable, but losing less than everything was risked is preferable.

Any sports bettor worth their salt knows the value of hedging. Betting on sports may be about more than just making or breaking a bankroll. One might employ numerous methods to ensure a profit on specific bets.

betting & odds

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