Betting inherently involves risk, and the primary goal of players is often to minimize or even nullify this risk. While minimizing risk completely might seem too good to be true, intelligent bettors employ several strategies, with hedging a bet standing out as one of the most clever ways to score a victory.
This comprehensive guide covers the essential concepts of hedging your bets, practical applications for limiting exposure, and tips for engaging in this strategy safely.
What is Hedging in Betting?
In a nutshell, hedging is a strategy where you place a second bet against the original one, particularly after the winning chances of the first bet have increased. It functions like insurance, aiming to eliminate any possible losses.
Essentially, hedging involves betting enough on the opposite outcomes of the same market to ensure a profit, regardless of the final result. While the winnings gained from hedging will be less than if you had only played the original bet, your chances of getting even a small profit have skyrocketed.
It is important to note that hedging is distinct from dutching. In hedging, you typically back the two different possibilities on separate bookmakers. Dutching, conversely, involves spreading your stake to reduce the risk, for instance, backing two out of ten horses in a race, though profits are not guaranteed.
How Can I Hedge a Bet?
You can hedge a bet by betting on the opposite outcome of your initial wager. This strategy can be applied in every sport, but some events seem more tailored for this method.
A classic scenario for hedging is in outright bets when your chosen team or player has reached the Final.
Hedging in Practice: The Champions League Example
Imagine you placed an outright wager of €/£50 on Manchester City to win the Champions League before the season began, with odds of 4.00. If City reaches the Final in May and plays against Real Madrid, you might be confident but still want to cover for a potential loss.
If you hedge, you would also bet €/£50 on Real Madrid to lift the Cup, perhaps with odds of around 2.50.
Here is how the outcomes play out:
- If Man City wins: You win €/£200 from the original bet, minus the €/£50 stake on Real Madrid. Total profit: €/£150.
- If Real Madrid wins: You win €/£125 from the hedge bet, minus the €/£50 stake for the original City bet. Total profit: €/£75.
- If you do not hedge: If City wins, you win €/£200. But if Real Madrid wins, you get nothing.
This example demonstrates the value of hedging, especially in uncertain matches; if you desire a guaranteed profit regardless of the winner, hedging is a “no-brainer”.
Calculating Hedge Bets
In certain applications of hedging, the opportunity to win arises from finding where a bookmaker has made a mistake regarding the odds. The gap between the correct and the erroneous odds presents a golden opportunity.
To figure out how much you need to bet on each outcome to ensure the highest profits, you will need an arbitrage betting calculator. This tool can perform the math quickly, saving precious time in your quest.
A pattern involving finding erroneous odds is to “hit it” on one sportsbook and then go to another sportsbook and bet on the opposite outcome for cover. However, this approach is time-consuming as it requires looking for bookmaker mistakes.
When Should You Use Hedging?
The decision to hedge depends on your playing style and bankroll.
If you are willing to accept a smaller but guaranteed payout and wish to avoid agonizing minutes, then hedging your bets is a viable path. Although it costs more and lowers potential profits, it allows you to sit back and enjoy the game.
If, however, you prefer adrenaline, love risk, or have a limited budget, there are better options than hedging. Even those with limited budgets can still benefit from using hedging periodically to keep their exposure in check.
Bookmakers, Rules, and Safety
Because hedge betting is a strategy designed to help punters ensure profits, many bookmakers view it as a rule violation. They may warn or even close accounts if you continually engage in this activity.
If you attempt to hedge by taking advantage of incorrect (wrong) odds, the bookmaker can deem this a rule violation, potentially leading to account closure. Consecutive bets on wrong odds will likely put a red flag on your account.
Avoiding Account Closure
To minimize the risk of detection and account closure, the best course of action is to bet on the opposite outcome on a different bookmaker. While this is not a guarantee, betting on two different bookies might do the trick.
To further ensure your account stays open, you may need to engage in mug punting, which essentially throws the bookmaker off your strategy. If you are simply covering your original choice with the opposite outcome in a different sportsbook, there will likely be no repercussions.
Advanced Variation: Matched Betting
A related strategy is Matched Betting, although it is very tough to master. This involves backing a result in a regular sportsbook and then laying the same result on a betting exchange. This can sometimes be done using promotions such as Free Bets. Matched betting is often used in horse racing, where the prices received are typically higher compared to football or tennis.
Finding Reliable Betting Sites
Resources are available to help players:
- Find safe sites: Choosing a well-known and respected sportsbook is preferable to signing up with an unverified bookmaker offering huge bonuses, which could be a scam. A complete list of trusted bookies is available on the Safe Betting Sites page.
- Identify scam sites: Numerous sites are unfortunately after your money, employing practices like rejecting withdrawals, cheating bonuses, and offering fake odds. A list of known Scam Bookmakers is compiled and updated daily based on reviews.
- Explore options: Bookmakers can be found and ranked by country (e.g., UK, USA, Canada, India, Germany, etc.), features (e.g., Bet Builder, Cash Out, Live Streaming), or category (e.g., Crypto Bookmakers, Low Deposit, Fast Withdrawals).
- Claim bonuses: Resources cover the best betting bonuses for both new players (including Freebet Offers and Crypto Welcome Bonuses) and existing players (including Reload Bonuses, Acca Insurance, and VIP Bonuses).