Hedge Betting – Tilt the Odds in Your Favour
Hedge betting, or hedging for short, is ever so slightly underestimated, yet effective, risk-reducing method that finds its application in both financing and sports betting. The idea of “protective” bet runs deep in the gambling domain but isn’t new by any means. Long before the era of online gambling, hedging had a major impact on how punters organize their bets to extract maximum profit. The technique hasn’t changed much, except for the copious lucrative opportunities, courtesy of the online bookies, which was a rare sight back in the time.
It seems that things are looking up for today’s players because the availability of betting markets plays a huge role in the positive outcome of this particular strategy. We’ll give you a healthy dose of arguments why that is, but first, we’ll elucidate the background of hedge betting, so that we’re all on the same page. Let’s get to it and see how exactly to incorporate this technique in your betting routine.
What Does Hedging Your Bets Mean?
For want of a better word, we’ll go with “protect” because if you’re not sure your bet will hold, you make another one to compensate for a possible upset. Not just any bet will do though, it has to be backing the other side, you originally thought will lose. It may sound a little unnatural to bet against yourself but sometimes this is the best you can do in a tight spot.
Usually, the prime concern is that wagering in this fashion pecks away at your return, which is true only in the short run. Ticking away the hedge-betting way adds up to a reliable strategy that earns steady gains in time. Employing this strategy, and betting big without a backup plan are two approaches different like chalk and cheese. Uplifting though a straight-up winning bet may be, in the long haul, we have to make sure that every step is well calculated and, at the very least, we give as good as we get.
A Word About In-Play Hedging
A golden rule we like to stick to is “if it ain’t broke don’t fix it”. But in the meantime, the only way to do something when your event is underway though is In-play. That being said, it should come as no surprise that most of the time, hedging is done by virtue of the live betting markets. Leveraging the right to wager while the action unfolds is quintessential for hedging. Hedge betting is also a possibility outside of in-play if you’re in the habit of comparing the prices different sportsbooks give. While not mandatory, live betting helps homing in on the return we want.
Hedge Bets as Means of Ensuring Return
Not only can hedging rectify a mistake, but it’s also good for guaranteeing you’ll green up regardless of how the event will end. If you’re like us, you’d always chase the profit by all means necessary. Then, when the moment is right we recommend you pull off the following checkmate move.
Let’s say your team is running great and you’re almost certain you’ve got it in the bag. Notwithstanding, the bitter taste of previous disappointments weighs on your mind. What should you do in this situation? Well, we know what path we’ll go down, that is securing a profit in each possible scenario. This includes making a small bet on the side that is highly likely to lose, for the sake of covering all bases.
Hedging as a Tool for Covering Losses
Hedging could be surprisingly effective in amending bad predictions. Here we’ll show you how to avail yourself of hedge betting for the purpose of alleviating an imminent loss. Let’s say you completely misread the situation, and your team is losing at the moment, making it so that only a U-turn can get you back in the game. There is, however, one final decision you should make, and that is whether the opposing side can go all the way and take the win given the current state of affairs. If they seem to be gaining unstoppable momentum, then don’t hesitate – back them with the bet size that will do you justice. Controversy? Not even the slightest. Remember that if you don’t do this move, albeit rather bold, you’re facing the threat of leaving empty-handed.
How to Hedge My Bets – Example with Real Odds
Here’s a practical example showcasing how to lock in profit. Let’s say you backed Novak Djokovic to win against David Ferrer at 1.5 with $20. Thirty minutes into the game and Novak already has a comfortable lead, the live odds for his win are now 1.30. If you know a little bit about tennis betting you’d want to end the bet right now and take the money because there are many variables that could knock a prominent front-runner like Djokovic off center. Not to be depreciated is also Ferrer’s talent – he’s called a giant killer for a reason. So, how do we play this, proactively so that we have a plan B?
This time around we’re going to use a betting exchange for our hedging setup. When you bet against an outcome, we say that you “lay it” exactly like the bookies lay odds. So now, the next thing to figure out is how much exactly to lay. It really isn’t that hard to work it out, the formula goes like this:
lay Stake = back price* back stake / lay odds
lay Stake = 20* 1.5 / 1.30 = $23
That simple equation guarantees us that if we lay Novak Djokovic at $39, we have a guaranteed return every which way. What makes this possible is the lay liability, which is the sum we’re obliged to pay when our lay bet loses. If you’re to lay at 1.3 with 39, that means:
23* (1.3 – 1) = 6.9 your lay liability is $ 6.9, this is what you must give back to bettors should, your lay bet fails. If your lay bet wins, however, you’ll be in for a $3 profit (lay stake – backers stake)= 23 – 20 = $3
If your back bet wins your winnings will be equal to $3 back stake* odds-lay liability – back stake = 20*1.5 -6.9-20 = $3
Are There Enough Auspicious Opportunities for Hedging?
That would depend on the sportsbook, betting exchange commission and sports you’re interested in. On the whole, favourable preconditions for hedge bets occur daily for punters who have the eye to spot them. If you want more of them, join several sportsbooks and that will widen your scope of opportunities, moreover, you’ll get the chance for cross-platform hedging. This, in turn, will help you experience the full measure of the strategy. Our top advice, if you want enough clear-cut windows of opportunity, is to invest your time in sports of a binary outcome. Not having to factor in a draw is a big plus when using a betting exchange is out of the question. Because let’s face it, not everyone knows how to work with the sites of this type, let alone use them to their advantage. In addition, the calculations become that much easier when you don’t consider the exchange’s commission.
Why Use Hedge Betting?
We hope you’ve taken on board our remarks on hedging and feel compelled to try it yourself. If you want a bullet-proof ride through the twists and turns of a match, then make a point of using hedge betting for some time and see if that’s what you’re looking for. Even if you’re not a big fan of the idea, the facts speak in favour of the system, therefore it’s worth giving it a try. While it’s not an absolute solution to all obstacles related to betting, hedging can help you bootstrap yourself out of an awkward situation, and this is what keeps the idea of using the strategy at the back of our mind at all times.