What is Hedging in Sports Betting? A Simple Overview
In sports betting, you would frequently come across the term hedging. Hedging is a common technique that betters apply to reduce risks on their specific bets.
Precise definition with an example
Hedging is the method that is applied to decrease the overall risk factor attached to bets, and ensure a return irrespective of which team wins.
For example, suppose there is a match between Arsenal and Chelsea. You bet for Arsenal to win. But simultaneously, you also bet in favor of Chelsea. In this case, you resort to hedging to reduce risk and increase the chances of positive returns. Irrespective of the match result, you win.
Adjust hedging – the fundamentals
The term is simply signifies (?) a modification on hedging. You adjust your original stakes on a particular bet and try to control the risk factor and probability of win further. In the example already mentioned, suppose initially Arsenal are the favourites to win. Now, just before the start of the game, you get information that two of the key players of Chelsea are not playing. In this case, you ADJUST your hedging strategy and might think of putting more on Arsenal. This is done as the chances of more returns from an Arsenal win has improved.
Hedging in-play – basic concepts
As the term suggests, the dynamics of hedging are being explored and applied while the game is on. We proceed by explaining this by the same example being previously discussed.
The match between Arsenal and Chelsea is in progress, where initially, the odds are in favour of Arsenal. Now assume that Chelsea takes a lead in the first half. In this situation, the bookies allow you to further moderate your hedge. There is a scope to optimally adjust the potential profit of your bet.
You can use it to bet on Arsenal’s chances to win, coming from behind. In this way, a new dimension is added to your hedging strategy. So, firstly you hedge, then you adjust it, and then you adjust further through hedging in-play.
How bets are hedged by bookmakers?
Bookmakers are always focusing on preparing their bets with hedging. They hedge abundantly, accounting for multiple games. Suppose there are 3 games in different stadiums, with various stakes for each team. They would assess the returns and risks, and hedge on all three of them, if they see opportunities to book profits. This is a way to ensure positive returns from betting on multiple games. The risk involved is contained. Hedging is used as an instrument that plays the role of insurance.
Calculator for Hedge Betting
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Know more on hedging
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