What is hedging?
Hedging a bet is a good way to limit your risk when betting on sports. A Hedge is when you have a bet on both sides of a contest. For example, say you bet $100 on the Eagles to win the Super Bowl before the season at +2500. Instead of just needing the Eagles to win the Super Bowl, you can “hedge” your bet by also betting on the Chiefs. If the Chiefs odds are +110 to win, you can bet $1238 on them to guarantee $1261 profit no matter if the Eagles or Chiefs win! This is a way for you to guarantee yourself profit rather than needing the Eagles to win.
The hedge calculator helps you figure out how much to bet based on your specific situation!
How do you use the hedge calculator?
Step 1: Enter the “original wager,” which is the original amount of money wagered (Ex: $100)
Step 2: Enter the “original odds” which is the odds of the original wager (Ex: +2500)
Step 3: Enter the “hedge odds” which is the odds of the opposite wager (Ex: +110)
Does it always make sense to hedge?
Definitely not. In most situations, it doesn’t make sense to hedge a bet. Every situation is different and that’s what the calculator is for. If you get a negative in the “profit percentage” category, it is not a good hedge. It’s also important to understand if you have a direct hedging opportunity.
It’s easy to become too eager to hedge a bet early if you are nervous. For example, when the Eagles were in the Conference championships against the 49ers, some bettors tried to hedge out of their Eagles Super Bowl Futures. Not only did those bets lose (because the Eagles won), but they also still didn’t win their future because the Chiefs beat the Eagles. That was obviously the worst case scenario but if you plan on hedging early, make sure you have a strategy to hedge again when there is a direct hedging opportunity.
When is the best time to hedge?
Hedging is very common with futures bets. If you bet on a team to win the Super Bowl or other championship and they make it all the way there, it may be wise to hedge. This will help limit your risk and can guarantee a profit depending on the odds. Entering all the information into our hedge calculator can help you make a decision.
Another popular time to hedge is with live-betting. Most sportsbooks offer opportunities for live betting that can be lucrative. A great example of a live hedge is the Chiefs and Jaguars game. If you bet on the Chiefs to cover their 9-point spread before the game, when Patrick Mahomes injured his ankle, it may have been wise to hedge your bet by betting on the Jaguars. The Chiefs would not have been 9-point favorites without Patrick Mahomes so adjusting to new information during the game can provide good opportunities to hedge with live betting.