What is Hedge Betting in Sports?

Written by: Rex This entry was posted on Thursday, April 30th, 2015

Anything can happen in sports, that’s why betting is a risk. But what if you could minimize the risk on a bet? Actually, you can do this, and the technique used in this scheme is called hedging.

Either you’re a new in betting or a shark already, you’ve probably heard of the term “hedge” thrown numerous times by other bettors. A hedge bet is sort of the insurance version of the sports betting world.

For example, you made a bet on the New England Patriots at -120 against the Green Bay Packers, who are sitting on a price the moment the line was up, and then a day before the match, you don’t feel as confident on the Pats to win that game.

In this situation, bettors familiar with hedge betting may put money on the Packers, who for example are sitting on a +100 odds. Let’s say your original bet was $100 on the Pats at -120, which has a potential payout of $83.33. On the other hand, you laid a $150 bet on the Packers at +100, which has a return of $150.

For ease of calculation, let’s pretend that there is no vigorish in the equation. Because you hedged your bet and put more money on the Packers, it’s as if your wager on New England didn’t exist. In short, you’ll be cheering for the Packers to win. If New England wins, your loss would amount to $67 because you had a bet, too, on Green Bay. If New England loses – a scenario that you felt more likely, thus the hedge bet – then your total payout would be $50.

Without your bet subsequent bet on the Packers, you would have been down $100. Hedging requires a combination of attention to line movement, knowledge of the sport, and sometimes, utter lack of confidence in your bets. Ready to bet?  Create a betting account now.

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