What is Hedge Betting

Hedge betting is a great betting strategy that enables you to get a profit whatever the end result of the event is. This guide will give you some more information on how to hedge your bets and strategies of hedging that can lock in profit.

What is Hedge Betting

Hedge betting is the betting technique which takes advantage of movement in odds, you place two bets on the same event. Many people that hedge bet use betting exchange markets as they let users lay bets. The term lay bets means that you’re betting on something not to happen in the event. You should back the higher odds and lay for the lower odds, this is where you start to make some profit.

This type of betting acts as a comfort blanket as there is no worry about losing money and your bet not coming in. It also is a betting technique that you can cut your losses. On the odd occasion you may place a bad bet or the odds don’t move the way that suits you. If you’re looking to get into betting, you need to be aware that you are going to lose sometimes, it’s part of the process. Although, you can reduce the loss by placing a lay bet close to the original odds, this will decrease the loss significantly.

So… How to Hedge Your Bets

Hedging is an extremely adaptable betting strategy. There are occasions when you have to hedge your bets quickly and sometimes it may be weeks possibly months before you need to start hedging. This depends on whether you are hedge betting in-play or over a long period of time e.g. World Cup.

The Difference Between Arbitrage Betting & Hedge Betting

The main difference between hedge betting and arbitrage betting is the way that each strategy is used. Arbitrage betting is where you place two alternative bets on different outcomes at the same time.  It is only used when there is a variance between odds being offered by different bookmakers creates a arbs betting opportunity. Whereas Hedge Betting, is where you places further bets on different results following the original bet that is placed. This kind of betting strategy is usually used following a change in odds.

An Example of Hedge Betting

Let’s say for example, you bet £50 on Sweden to win Euro 2020 at 40/1. If they got to the final of the tournament against Portugal you would be on the cupse of winning £2,000. Sweden would still be a massive outsider to win the tournament and Portugal would be expected to win.  If Portugal wins, this would leave you with a £50 loss.

 StakeOddsProfitLosing stakeNet Profit
Sweden Win
(original bet)
£5040/1£2,000-£1.150£850
Portugal Win
(Hedge bet)
£1,1504/5£920-£50£870

Although, you could hedge your bets and back Portugal to win. If Portugal wins the game and the tournament, a £1,150 bet would give you a profit of £920 less your original £50 stake in Sweden leaves you with a net profit of £870 . If Sweden wins, your original £50 bet would give you a profit of £2,000 less your £1,150 Portugal hedge leaves you with a net profit of £850. It’s important to remember to bet on Portugal to lift the trophy and not to win in 90 minutes. A draw would wipe this bet out.

In the above example, you have lots of room to play around with your hedge.  If you want to win more money on Portugal, you can increase your Portugal hedge.  For example, you could bet £1,500 on Portugal to raise the cup which would result in a net profit of £1,150 (£1,200 (Portugal win) – £50 (Sweden stake)).  Or conversely, you could go for a big win for Sweden and do a small hedge on Portugal.  It’s really up to the punter.  But, the key to hedging is locking in a profit.

Overall Hedge Betting is an effective strategy and it has proven that you can win some serious money. One thing to always remember with this betting strategy is weighing up the risk and reward. You don’t want to be overly cautious and and implement hedging that reduces your profit.

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About the Author Rob Stoubos