Hedge Betting: What It Is and How to Use It Effectively

Making a bet against a previously placed bet on the same event sounds counterintuitive, but there are times when doing so can reduce risk while also potentially guaranteeing a profit.

Hedge betting is a useful tool and a more advanced strategy that can assist bettors in their long-term success at the betting window. How to hedge a bet is a commonly asked question that we’ll dive into in this piece.

What Is Hedge Betting?

Hedging a bet is when you place a wager opposite an original wager on the same event that has a strong likelihood of winning. It’s used to guarantee at least one of your wagers wins, thus reducing the amount of money lost or, more likely, guaranteeing a profit.

Now, if only it were that easy, everybody would be hedging bets, right?

Well, it isn’t for everyone since hedging a winning bet could cut into the potential profit, but some gamblers are willing to let it ride for the maximum payout and the thrill of the journey.

You can hedge nearly every type of bet, though the strategy is common and most popular in the futures market, where odds can shift more drastically.

When live betting, it’s important to realize all possible outcomes since the wrong hedge could lead to both bets losing.

How Hedge Betting Works

If done correctly, a hedge bet will guarantee that at least one of your bets ends up succeeding, meaning there is some return on the original stake.

One key to hedge betting is taking the wager at different times and with different odds, thus guaranteeing a winner.

It sounds good, and hedge betting is a solid strategy, but the profit is usually reduced, and there is the chance that both bets can lose.

Hedging to Secure a Profit

Securing a profit is the main reason for hedging a bet. How is this done, you ask?

If, for example, you bet $100 on Duke to win the college basketball title at +1000 before the season began and they make it to the championship game, you can simply bet the moneyline on Duke’s opponent for a sure win on the bet. In this case, you would need to wager enough to win the original stake of $100 to guarantee that you at least break even.

The opponent wager is taken from the potential profit of a Duke victory.

Hedging to Minimize Losses

Hedging can help minimize losses when a bet is unlikely to win.

For example, if your original bet had odds suggesting it was unlikely to win, it makes sense to consider a hedge bet, as long as the second bet leaves you with enough money regardless of the outcome. Placing additional bets for a different outcome reduces the overall risk and potential losses of the original bet.

For this method to succeed, both the odds and the amount wagered need to make sense for the particular situation.

When to Use Hedge Betting

There is no right or wrong answer on when to hedge a bet. Some situations are optimal for hedge betting, depending on the timing, odds, knowledge of the strategy, and risk tolerance.

If a future bet or parlay is close to winning, hedging will guarantee a profit, though the overall payout would be impacted.

You can also hedge a bet you feel less confident about to lessen the total loss.

Live Betting Opportunities

The evolution of technology in sports betting and the emergence of live betting have changed how most bettors stay involved.

Bettors no longer have to place a hedge bet before the start of an event; rather, they can do it during the actual event through the live betting platform.

It’s vitally important to pay attention to odds shifting in real-time to get the most out of a possible hedge. Perhaps the game isn’t going how you envisioned; dropping some coin on the opposite side could help the bottom line. Odds could also shift enough, creating the possibility of both wagers being successful.

Future Bets and Championship Games

Hedging on a potentially successful future bet is a common practice.

For instance, you bet $100 on the Packers at +2500 to win the Super Bowl before the season started, and they play in the Super Bowl against Baltimore. If you’re not confident about their chances, you could wager $1,000 on the Ravens moneyline at -150. Regardless of the outcome, you are guaranteed to win either $1,500 on the Packers or $567 on the Ravens.

Hedging can also be done in single games if the odds shift enough to make it worthwhile. Depending on a bettor's habits and strategy, hedging a bet might be worth it. Others will simply ride out the original wager in the hopes of cashing a bigger ticket.

Like we said, the time to hedge a bet depends on factors inherent to the individual placing the bet.

Hedge Betting Strategy Tips

Hedging is more of an advanced betting strategy and requires some getting used to. It’s also not for everyone since determining the right opportunities can be time-consuming. Bettors need to consider all their options and stick to the long-term plan.

Hedge betting is useful when used occasionally and calculated properly. It’s not a strategy to generate long-term success at the betting window

Calculate Your Hedge Bet Carefully

Some bettors are more than happy to take a guaranteed profit with a hedge bet, though the payout could be significantly reduced. Others are fine with letting the original stake ride, assuming all the risk and profit.

Again, there is no right or wrong time, but consider all your options before making a hedge bet.

In certain cases, the odds can line up where hedging could actually result in both bets losing, which is the least desirable outcome. Carefully calculating your hedge bet can make sure that doesn’t happen.

Avoid Over-Hedging Your Bets

Guaranteed profits and reduced risk are benefits of hedge betting that are hard to overlook.

While occasionally employing this strategy is smart, overhedging is generally an inefficient use of the strategy. While you could potentially hedge every bet, you’re essentially zero-factoring the initial wager while paying twice the juice to the house – which is not an effective plan for increasing your bankroll.

Not all wagers are alike, making some not even worth the risk. In the end, diminished returns are not good for long-term success.