Hedging a bet is like taking out an insurance policy on your original wager. It’s protection against taking a large financial loss on the original play.
In simple terms, you are placing a second wager that is the opposite of your original wager. On the one hand, it will likely reduce your overall earnings on the wagers. At the same time, it will guarantee that your overall outcome should be less of a financial hit if things go south on the original wager.
Here’s how hedge betting works
suppose you went to your account at DraftKings USA sportsbook and placed a $100 future book wager on the Cleveland Browns to win the Super Bowl at odds of +4000. As things turn out, the Browns reach the Super Bowl, where they’ll be facing the Tampa Bay Buccaneers.
Prior to Super Bowl Sunday, in order to hedge your bet, you’d wager $1000 on the Bucs to win the big game at odds of +200.
In the best-case scenario, the Browns win the Super Bowl. You lose your $1000 wager on Tampa Bay but you still show a profit of $3000. The worst outcome would be the Buccaneers winning the Super Bowl. You lose your $100 wager on Cleveland but the end profit would still be $1900.
Hedge betting strategy and systems
Hedging a bet can work in any type of wagering system. Bettors who roll out a multi-game parlay wager will often hedge the potential loss by playing smaller variations of the same parlay. This is similar to boxing a trifecta at the racetrack. You’re creating multiple outcomes that can win for you, albeit all at different levels of profit. But it will save you from losing it all if that one parlay play doesn’t hit.
Why hedge a bet?
Simply put, you are locking in guaranteed money. Think of it like playing the stock market. You don’t want all your investments in high-risk ventures. By putting some money in blue chips and some in more volatile stocks, a balance can be found where your portfolio always is making you money.
By hedging your bets, you take the gamble out of gambling.