The phrase “hedging” refers to a situation in which a person or organization tries to limit something, usually the downside of something. The concept of hedge betting is to bet on the opposite side of a wager already in place.
When someone hedges in sports betting, they limit their exposure to financial loss. Using hedge betting, sports bettors can either reduce their risk or ensure a profit on their wager. Hedging means limiting your potential losses in betting.
In this article, we will discuss various aspects of hedge betting and how to employ hedge betting in any sport.
What exactly is Hedge Betting?
When a gambler is unclear if a wager will result in a victory, they might use the hedging tactic to place a second wager in opposition to the first.
Even if a bettor believes they have a good chance of winning, they can elect to hedge their wager simply to be safe and ensure they come out on top. The win will however be smaller. But placing the second wager gives you some form of insurance in case the first one loses.
Even though betting on different sports isn’t the same, hedging is a smart tactic. Futures bets involve a money line and are considered long-term wagers. While betting on other sports might include the use of a money line, some individual games use a point spread.
How do you Hedge a Bet?
Suppose you place a wager, and then you place a second wager against it. You will be able to see some kind of return. Or at least less of a financial hit – than if you made the original bet and lost it.
Let’s look at hedging a futures bet using an example.
Let’s say you put INR 100 on Mumbai Indians to win the Indian Premier League at the start of the 2023 season. Their odds for the IPL 2023 are +1500, so if it happens, you might win INR 1600 (a ₹1,500 profit). You turn out to be a little bit of a foreteller, and the Mumbai Indians indeed make it to the final game.
You previously decided to bet on the Mumbai Indians to win. So you decide to hedge your bet and ensure a profit by betting ₹150 on the Delhi Capitals, who are gets -110 odds. A Delhi Capitals victory will result in a potential reward of ₹286.36.
In the best-case scenario, the Mumbai Indians defeat the Delhi Capitals, and you receive ₹1,600 in winnings. You have a profit of ₹1,350 from your two wagers of ₹100 and ₹150. However, if the Delhi Capitals do triumph, you would receive INR 286.36 in return for your ₹250 in stakes. Even though you just make ₹36.36 in profit, it’s still better than nothing.
By ensuring a profit, you not only secure your bankroll but also your initial bets to ensure you wouldn’t suffer a loss.
In a different made-up situation, suppose you placed a wager on a multi-game parlay and things are going well through the first several games. You’ll receive a hefty prize if the final one triumphs. If not, nothing is yours.
There are two major reasons why hedge betting is used in sports betting.
1. To Reduce the Risk Factor
To lower the danger of loss in hedge betting, you can avoid a few big losses. You have placed a wager and no longer think it will win, which is the main rationale for this.
This can be the case if you’re unsure of the original purpose of your wager or if something occurs that makes you reconsider the likelihood that it will win.
2. To Increase the Profit Rates
Hedge betting can be utilized to guarantee wins for participants if it is used properly. This also depends on the kind of bet that was placed. An example of how you might accomplish this is by placing an initial bet on a team to win the IPL 2023 at the start of the season.
In this case, hedge betting would entail placing a further wager on the opposing side from the initial one after your team may have advanced to the final game. If the math is right, you may create a scenario in which you are profitable regardless of which team wins.
Conclusion
Players make choices based on what they believe will best fit their betting preferences. No player needs to use a certain tactic or move. The same is true with hedge betting. Among the more conservative bettors, hedge betting is a popular personal wagering preference.
This kind of bettors frequently hedge their wagers and choose guaranteed payouts. Players should be free to choose the gambling strategy that best suits their preferences and the amount of money they hope to win.
