Hedging your Bets

0
No votes yet

Hedging your BetsHedging bets is a way of reducing or even completely eliminating the risk of a particular bet. This is done by placing a bet on the opposite outcome to the outcome of the original bet – usually to ensure you have locked in a profit, although there might be circumstances where you will accept a loss after hedging.

In this article I start with two examples of where you might decide a hedge bet is the right way to go – and explain how the hedging process can be done. I move on to look at the advantages and disadvantages of hedging a bet.  I finish with an overview of the bet hedging process and how this fits into your wider betting strategy.

Bet Hedging Examples

Example One

You’ve had a bet on a team to win the F.A. Cup which was placed in the early rounds of the competitions back at the start of the year. The team has made it all the way to the final and you are looking at a win of £800 if they go on to win the trophy. The final is seen to be a close affair and the opposition can be backed at odds of even money. In this situation, you could back the other team to ensure a win. You might want to back them for £400, ensuring a profit of £400 whatever happens – or you could back them for a smaller amount such as £100, meaning your potential £800 win will be reduced by £100, but you’ll guarantee yourself a return of £100 if your original bet loses.

Example Two

You’ve placed a bet on a football team on the morning of a match as you feel they offer a great value price. However an hour before kick-off the teams are announced and it emerges that the star striker has picked up an injury and your value bet is now looking anything but value. Here you might decide to back the other team and actually take a loss on the game before the game starts – a frustrating and disappointing scenario, but one that might see you lose much less than you might have done.

Planet Mark's Top Rec:

32Red are giving the old 'High Street Bookies' sports betting brands some real trouble in 2019.

This very slick site offers top-rated odds; a huge range of bets and a big list of player promotions (really, check the latest before you bet elsewhere). This now includes an excellent 100% profit boost offer for all new players.

32Red are my go-to betting site, you’ll quickly find out why once you see www.32red.com/sports for yourself - check them now!

 

30181

 

Planet Mark's Top Rec:

32Red are giving the old 'High Street Bookies' sports betting brands some real trouble in 2019.

This very slick site offers top-rated odds; a huge range of bets and a big list of player promotions (really, check the latest before you bet elsewhere). This now includes an excellent 100% profit boost offer for all new players.

32Red are my go-to betting site, you’ll quickly find out why once you see www.32red.com/sports for yourself - check them now!

 

30181

 

Planet Mark's Top Rec: There are a lot of good reasons why Bovada are the number #1 US friendly sportsbook. Look beyond the big welcome bonus and you'll find the real magic...

Bovada have a huge range of markets (especially when it comes to the bigger events), competitive lines and super-easy deposits / withdrawals.

The killer reason is the promos – you’ll find their list of offers for regular bettors unrivalled anywhere online. Check out www.bovada.lv to see the latest deals for yourself now!

Bovada Sportsbook

The Process of Bet Hedging

Hedging a bet is particularly easy when there are just two possible outcomes as in example one, where there are just two teams that can win the F.A. Cup. However, there can be problems when there are more potential outcomes. In example two, having backed a team to win a particular game, to successfully hedge the bet you’ll have to ensure that all other outcomes are backed – in football for example you’ll have to back both the other team and the draw. Some bookmakers will offer bets on a team ‘not to win’ which covers both of the other outcomes and of course you could also ‘lay’ the team to win on a betting exchange such as Betfair. Using an exchange does usually offer the best option to hedge a bet, especially if your original bet was placed on the exchange as you’ll only pay commission on your overall profit on the market. You’ll also not need to use extra funds to hedge the bet on an exchange, as you’ll be able to use the potential profit to lay the selection.

When deciding to hedge a bet, ensure that you are still receiving the best price you possibly can – taking a bad price on any bets is a crime that will cost you money in the long run, and in this day and age of odds comparison sites and exchanges there really is no excuse.

Advantages and Disadvantages of Bet Hedging

Advantages and Disadvantages of Bet HedgingThe biggest advantage to bet hedging is the fact that you can guarantee a return in some situation where you might otherwise receive nothing. It can be heartbreaking to have an accumulator (parlay) on a large number of selections and have everything riding on the final game – only to see it lose. Hedging here will ease the pain somewhat. The other advantage to hedging is that you’ll see fewer swings in your bankroll.

The biggest disadvantage to hedging a bet is that you are probably losing value. If you consider a particular bet to be value when placing it the chances are that the selection still offers value (especially considering that usually when hedging they will be a lower price than when you originally backed the selection) and by backing the opposite outcome you’ll lose some of that value – effectively losing yourself money on some of the very best bets you’ve placed. The other obvious disadvantage is that you’ll win less if the bet does indeed go on to win, leaving you with a slight feeling of disappointment in what could have been your finest gambling hour.

Hedging Bets – Overview

There are no strict rules you should adhere to when deciding whether to hedge or not. Many of the decisions might be down to personal circumstances – if hedging guarantees that your bills will be paid for a few months this might certainly be the way to go – if you’re after that glorious all or nothing moment, then you probably won’t want to hedge.

Be sensible, consider what you want to achieve by hedging, and ensure you hedge the bet correctly if you decide to go ahead.

Planet Mark's Top Rec:

32Red are giving the old 'High Street Bookies' sports betting brands some real trouble in 2019.

This very slick site offers top-rated odds; a huge range of bets and a big list of player promotions (really, check the latest before you bet elsewhere). This now includes an excellent 100% profit boost offer for all new players.

32Red are my go-to betting site, you’ll quickly find out why once you see www.32red.com/sports for yourself - check them now!

 

30181

 

Planet Mark's Top Rec:

32Red are giving the old 'High Street Bookies' sports betting brands some real trouble in 2019.

This very slick site offers top-rated odds; a huge range of bets and a big list of player promotions (really, check the latest before you bet elsewhere). This now includes an excellent 100% profit boost offer for all new players.

32Red are my go-to betting site, you’ll quickly find out why once you see www.32red.com/sports for yourself - check them now!

 

30181

 

Planet Mark's Top Rec: There are a lot of good reasons why Bovada are the number #1 US friendly sportsbook. Look beyond the big welcome bonus and you'll find the real magic...

Bovada have a huge range of markets (especially when it comes to the bigger events), competitive lines and super-easy deposits / withdrawals.

The killer reason is the promos – you’ll find their list of offers for regular bettors unrivalled anywhere online. Check out www.bovada.lv to see the latest deals for yourself now!

Bovada Sportsbook

More Sport Betting Strategy Articles: