Are you interested in learning how to hedge a bet? Then this guide has you covered. Our experts will define a hedge bet before providing some real-world examples so you can see how these unique sportsbook wagers work in practice.
There are a lot of misconceptions associated with hedge betting, including its legal status and the best time to use it. So, we hope to set the record straight as part of our guide on what a hedge means in betting. We’ll cover basic hedge betting guidance and examples before listing some dos and don’ts to consider.
We’ve all heard the term “hedging your bets”, but what does it mean in practice? Join us as we offer a definition of hedge betting and look at how to hedge bets on your favorite sportsbooks as part of this need-to-read
online betting guide.
What Does a Hedge Bet Mean? Definition and Examples
The Definition of a Hedge Bet
A hedge bet is a secondary wager placed to reduce the risk of a loss from an original bet. It’s like giving yourself a safety net, reducing the risk of making a loss while guaranteeing profit on any sports wagers you place.
In hedge betting, you’re essentially betting
against
your original bet. This protects you against losses while ensuring you make a profit, regardless of the outcome of a particular sports event.
Example of a Sports Hedge Bet
Much like in our recent guide to
accumulator bets explained, here’s an example that demonstrates how a hedge bet works in practice…
Let’s say you place a $100 futures bet on the Minnesota Vikings to win the Super Bowl at +800 odds. If they’re the outright winner, you would receive $800.
As the Super Bowl approaches, you learn that they’ll play the Kansas City Chiefs in the final. This ultimately puts your original futures bet in jeopardy, so you want to hedge your bet.
The Chiefs are -110 favorites to win the Super Bowl, so you place a $400 hedge bet on them to win.
Now, let’s take a look at your potential profit calculations based on the outcome of the game…
If the Vikings win
You win $800 but lose $400 on your Chiefs hedge bet.
Total profit: $400
If the Chiefs win
You win $363.64 but lose $100 on your original Vikings futures bet.
Total profit: $263.64
This illustrates perfectly how hedging a bet can help you turn a profit, regardless of the outcome of a particular sporting event. Of course, finding the perfect odds on which to hedge a bet can be tricky, but we’ll cover some of the dos and don’ts of hedge betting later in the guide.
Why Would You Need to Hedge a Bet? 3 Key Reasons
If you’re skeptical about the perceived benefits of hedge betting, you’re not alone. Many regular sports bettors are dubious about the practice, perhaps because it seems overly complicated and is generally frowned upon by bookmakers themselves.
However, with all that said, there are some pretty compelling reasons why you should add hedge bets to your broader sports betting strategy, including…
💰 Guarantee profit
In cases where you’ve locked in a futures bet that goes the distance, you can place a bet on the other team to win to guarantee profit regardless of the outcome. This is perfectly illustrated in our earlier example.
🚫 Minimize losses
No longer confident about the outcome of a game? Perhaps your favorite team has suddenly hit a bad run of form and you’ve lost all hope of victory? A well-timed hedge bet could save you from a heavy loss, with a wager on the opposing team mitigating the risk of losing a sizeable sum.
😌 Mitigate the stress of sports betting
If you’re a naturally anxious sports bettor, hedge betting can reduce the stress associated with “all or nothing” sportsbook wagering. The fact that you know you stand to win either way can soften the blow and reduce the anxiety of experiencing a heavy loss, which is what some bettors value the most.
What Are the Most Common Types of Hedge Betting?
Thus far in our hedge betting guide, we’ve only considered hedging on futures bets. But there are various types of hedge bets available, as covered in our chart below.
Type of hedge bet
Key details
Pre-tournament hedge
A pre-tournament hedge is very similar to a futures hedge, wherein you place a wager on a team to go deep in an upcoming event before hedging on their eventual opponent.
In-game hedge
Some bookmakers permit in-game hedge betting, whereby you place a hedge bet based on the changing momentum of a live game, based on things like current score or player injuries.
Arbitrage hedge
A complex form of hedging, an arbitrage hedge is when you place bets at various bookmakers at different odds, essentially covering every eventuality. This form of hedge betting warrants a standalone guide.
Partial hedge
As the term suggests, a partial hedge is when you look to cover only a part of your original stake. This mitigates some but not all risk, so it keeps the excitement palpable.
Cross-market hedge
In cross-market hedge betting, you’re essentially placing multiple conflicting wagers on the same event. For instance, you might wager on a team to win outright while simultaneously hedging that the other opposing team will score ‘X’ amount of goals.
What Are the Dos and Don’ts of Hedge Betting?
While there are plenty of guides out there showing you how to place a hedge bet, we’d prefer to highlight some of the dos and don’ts of this unique type of sports wager. That way, you can avoid common mistakes and add hedge bets to your sports betting playbook alongside the likes of picks against the spread wagering. Never heard of that? Check out our
picks against the spread explained
betting guide once you’ve finished our hedge betting resource.
The Dos of Hedge Betting
Do
crunch the numbers to ensure your hedge bets stack up. There are hedge betting calculators out there that can help with this, but it’s wise to figure things out on your own, too.
Do
consider how much an additional bet might cost. It’s easy to say you’re going to place a hedge bet, but at what cost in the short term?
Do
compare betting sites to find the very best odds. If you know your bookmaker is guaranteed to have the best odds, this makes hedge betting much simpler and more predictable.
Do
watch out for transaction fees and other sportsbook-related charges. Each bet you place may incur commission, compromising your total profit.
Do
stay disciplined and avoid impulsive hedge betting. It may feel like you’ve landed on an unbeatable strategy, but mistakes can still happen.
The Don’ts of Hedge Betting
Don’t
place a hedge bet for the sake of it. You should only hedge if there’s a strong possibility of losing money, as otherwise, you’re eroding your potential profit margin unnecessarily.
Don’t
ignore a bookmaker’s rules on hedge betting. For obvious reasons, some sportsbooks don’t look kindly on this wagering tactic, so it’s important to check the terms of use closely before you go ahead with hedge bets.
Don’t
hedge if you don’t understand the math. Take time to learn how ‘X’ will influence ‘Y’ – this will make you a better hedge bettor in the long term.
Don’t
use hedge betting to chase sportsbook losses. Stick to your usual wagering habits and always remember to gamble responsibly.
Don’t
forget to time your hedge bets properly, particularly if you’re placing an in-play hedge. Odds can change in a heartbeat, so timing is everything.
What Are the Pros and Cons of Hedge Betting?
Before we summarize and close-out our hedge betting guide, here are some of the key pros and cons to remember…
Pros & Cons
Guaranteed profit when deployed correctly
Can reduce your risk of sportsbook losses
Removes some stress from betting
Perfect for live in-play betting scenarios
Highly compatible with futures bets
Reduces overall profit
Requires additional cash output
Can lead to over-betting
Is Hedge Betting the Right Strategy for You?
We hope our hedge bet resource guide has shed light on the potential benefits of this specialized type of sports wagering, while offering a few pointers on how to get it right. When deployed correctly and in the right circumstances, hedge betting can be a powerful way to safeguard profit and limit your exposure to painful sports betting losses. But our advice is to only use it when you really have to, while ensuring that you understand how it works inside and out.
Here at Next.io, we want to help you master the art of sports betting and discover the best places to wager on your favorite sports teams. Take a look around to discover more expert-led sports betting resources, including our recent guide on
betting exchanges explained.
Up to 100 Rebet Cash matched in freeplay on First purchase
Claim Bonus
OUTSIDERCopied
3PlayBracco9.2/10
18+, T&Cs apply
100% Purchase Match up to $100
Claim Bonus
How to Hedge a Bet FAQ
You should only hedge a bet in instances where you don’t feel confident that your original bet will settle as a winner, and you want to guarantee a profit while mitigating the risk of losing.
Yes, it does. The obvious trade-off of hedging a bet is a reduced overall profit. That’s why it’s important to only hedge a bet if you need to.
Yes, it’s legal, although some sportsbooks don’t like it. Be sure to review the terms of service for your bookmaker if you want to check its stance on hedge betting.
