Mathletic Sports +

By: Logan Griffiths

The thrill of a clean win is what every bettor continues to seek. But as bettors we have a slight sense of doubt with every bet we place, we can use that as an advantage through hedging.

Hedging is a placing a second wager that partially or completely voids the outcome of your original bet. It’s a strategy to either ensure profit, or minimize a larger loss.

What is the benefit to hedging?

Easing the Mind with Confidence: When placing a bet you anticipate that you will be right, but there can always be doubt in your mind with numerous factors that could make you lean the other way. Hedging can offer you a peace of mind while still allowing you to potentially profit if you initial pick wins.

Locking in Profits: Your initial bet is looking good, and the game is going as predicted. Hedging on the opposing outcome can guarantee a profit, even if your original bet loses due to a late comeback.

Parlay Protection: Parlays offer the chance at a significant payout, but they require multiple bets to win. Hedging individual legs of a parlay can lessen the risk if one leg falls through. Though the parlay won’t hit you will minimize your loss.

Example of Hedging:

For example, you think that the Golden State Warriors will win against the Los Angeles Lakers, but worried that Anthony Davis has a mismatch against their small ball team.

Original Bet: You place $100 bet on the Warriors to win at -120 odds (meaning you need to risk $120 to win $100).

Hedging Bet: As the game progresses and the Warriors lead comfortably, you place a smaller hedge bet of $50 on the Lakers to win at +200 odds (meaning a win would pay $100 for a $50 risk).

Potential Outcomes:

Warriors Win: You win your original bet, profiting $83.33 from this bet. However, you hedged which now you must subtract the $50 placed on the Lakers. You end the night with a $33.33 profit.

Lakers Win: You win your hedge bet rewarding you with a payout $150, then subtract $100 from your original bet, and you’ll see that you still end up with profit.

Hedging ≠Never Losing

Hedging is a valuable tool used by bettors, but it is important to understand it has limitations.

Reduced Profits: The potential payout of your original bet now reduces because you are placing a smaller bet against it.

Not Always an Option: Not every game situation allows hedging. Sometimes letting your initial bet is the best option for you. So understand when to and not to.

Sharp Odd Movements: Hedging opportunities can disappear quickly as lines shift based on betting activity. Be prepared to act fast if you see a hedging opportunity.

Hedging Strategically

Hedging can be a powerful tool for risk-averse bettors or those looking to lock in profits. However, it should be used strategically and not your default approach to betting. By understanding the situations where hedging holds the most benefit, you can incorporate it into the strategies you already implement.