1. What Does Hedging A Bet Means
2. What Does Hedging A Bet Mean Spiritually
3. Hedging Your Bets
4. Hedging Bets In Gambling

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The term 'Hedging Your Bets' or Hedge Betting basically involves placing multiple bets within the same market on various potential outcomes, taking advantage of variations across the market. This technique acts as an insurance mechanism when done correctly, and can minimise and potentially eliminate the chance of losing, with the bettor able to guarantee a return before an event has finished.

You have probably heard the term 'hedge your bets' used in everyday life. It is a phrase that denotes caution. To hedge your bets is to protect yourself from making a bad choice or decision. You may hedge your bets when you are at work by requesting more budget or time so you know you will have what you need to complete a certain project. So, what does hedging your bets mean in the world of betting?

The hedging technique is not the ONLY way to do this, but it’s definitely something to have in your locker. The key, as with any betting strategy, is to learn how and when to use it effectively. The biggest problem with hedging is that knowing when and how to hedge. Hedging a bet is an advanced strategy used by sports bettors to either reduce the risk of a wager or to guarantee a profit of some kind from a wager. Similar to middling a wager, hedging is a strategy that. Hedge your bets definition: 1. To protect yourself against loss by supporting more than one possible result or both sides in a. Hedge Betting Hedge betting is a sports betting strategy that most bettors are at least vaguely aware of. This doesn’t mean that they all fully understand how to use it effectively or that they know why.

What is hedge betting?

As with its idiomatic use, hedging your bets in betting (sometimes referred to as hedge betting) means to cover more than one eventuality so that you do not lose too much money if your original bet doesn't come off. Let's look at an example to gain a clearer understanding.

Imagine that Liverpool are playing Paris Saint Germain in the Champions League quarter finals. In our example, a bettor has placed their bet on Liverpool winning, but as the kick-off looms they are not sure it will come off. Both teams are in good form, leading their leagues by significant margins and have star players who can completely change games in an instant; the match is very difficult to accurately predict. Our bettor is having doubts, so they change their mind and place a second bet; one on Paris Saint Germain to win.

They have now hedged their bets. This is because even if the original bet does not come off and Liverpool lose, the bettor will still earn some money because of the second bet on PSG. In other words, they have mitigated some of the risk of the Liverpool win bet failing.

What are the Pros and Cons of hedge betting?

What Does Hedging A Bet Means

Let's deal with the cons first of all. The obvious one is that two contradictory outcomes cannot possibly take place in a match; both Liverpool and Paris Saint Germain cannot win. This means that hedging your bets guarantees that you will lose one of the bets and therefore lose some amount of money. So, hedging your bets somewhat goes against the very essence of betting, which is to make money.

What Does Hedging A Bet Mean Spiritually

However, this is where the pros of hedge betting come in. If the original bet on Liverpool loses without the second bet to back it up, the bettor loses all that stake. With the second bet placed on PSG, those losses will be diminished, so if the worst happens, the bettor will not experience quite such a bad hit to their pocket.

Hedging your bets can also take place in play. Perhaps the bettor is quite happy to stick with their original bet before kick-off, but by half-time their feelings have changed. PSG are on-form and much the more likely to win, and Liverpool's star man has been taken off injured leaving them toothless up front. A Liverpool win is now looking less likely than it was before the match, so a second bet is placed early in the second half to settle the bettor's nerves and cover the possibility of a PSG win. Again, our bettor has hedged their bets.

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Hedge betting vs cashing out

In this example, hedging your bets is somewhat similar to the cash-out option, with a couple of notable differences. First, whereas the cash-out option is instigated by the bookmaker, who decides what to offer and when, a hedged bet is instigated by the bettor, who decides what extra bet they want to place and when. Of course, if the bookmaker you use does not offer in-play betting, hedging your bet during the match would be impossible and you would have to place additional bets before kick-off.

Secondly, whereas hedging your bets is a defensive measure, cashing out is a little more proactive and can make you more money. Hedging means you are simply mitigating a potential risk and reducing the possibility of suffering a damaging loss; you are saving a little bit of money. Cashing out does not do that; instead, it can allow you to get a healthy sum of money, even if it is likely to be less than what you would make if you were to see your original bet through to its conclusion.

So, which is the better option for a bettor who wants to cover the possibility of losses: hedge betting or cashing out? There is no hard and fast rule that you can use every time you place a bet. Every instance must be taken on a case by case basis, as the circumstances can change dramatically. What is for certain across each and every case is that it is important for you to manage your emotions, and study the game and the teams carefully.

Just because Paris Saint Germain are in the ascendency does not mean it will stay like that and they will go on to win. Just because Liverpool are struggling does not mean that they can't hit their opponents with a sucker punch. Do not over-react to the events of the match and make a bad decision (whether it is cashing out or hedging your bets) just because things are not going quite as you foresaw at that particular moment in time. Take your time, think things through carefully and come to a decision that you feel is right for you.

In summary

Ultimately, hedging your bets is all about risk and reward, and like the cash-out option, it can sting you as well as help you out. To get the most out of it, you should take care making your decisions and not rush in to anything that you may look back on later with regret. Sure that second bet could save you a large loss, but it could also cause you to miss out on the entirety of a nice win unnecessarily. Done well, hedge betting can be hugely impactful; done poorly it can be very costly indeed.

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If you think winning a 10-team parlay is a dream come true for most bettors, you would be spot on. However, the chances of that happening are slim to none, making it not a very realistic goal for serious bettors to reach. The dream scenario for most bettors is to find themselves in a position where they are guaranteed a profit regardless of what actually happens in a game they bet on. When a bettor has a chance to 'hedge' their bets and turn a profit, they can consider the time spent handicapping well worth the investment.

What Does It Mean to Hedge a Bet?

When you hear someone use the phrase 'hedging a bet,' they are referring one of two definitions. The first is a situation where a bettor would cover their tracks and place a wager on the opposite team in order to limit how exposed they are in a particular game. Let's jump right into an example to help explain.

Let's say you decide to bet the NBA's Bucks at -140 on the moneyline but during pre-game warmups, Giannis Antetokounmpo suffers an ankle injury and is no longer able to play. Instead of letting your original bet play out and test your luck with the likes of the Bucks' supporting cast, you would bet on their opponent, the Raptors, at +130 for the same amount as your original bet. So now you're left with a win-win situation, in which the only risk you have is the vig on your bet .

Why Would a Bettor Hedge a Bet?

When you make a bet of any kind, you are exposed. You are exposed to the potential loss of the amount that you have wagered on one or multiple games. But this is what gambling is - it's exposing your bankroll in order to see a return on your investment. However, situations do arise where a bettor is no longer comfortable with how exposed they are on a certain game. Something about the game has changed - perhaps the weather has worsened, or maybe a key player has been injured in the pregame warmup. Maybe you bet early and since placing your bet the coach has been fired or there has been a suspension handed out or there were travel issues. Whatever the case may be, a bettor will hedge their bet in order to limit the damage to their bankroll should things go sour between the time they place the bet and the time the game actually starts. This is damage control.

Hedging Your Bets

The second definition of 'hedging' is a situation where a bettor can guarantee themselves a profit. This is done almost exclusively when a bettor has a solid future bet in place that has the potential to win. Let's say, for example, you bet $100 on the Los Angeles Dodgers to win the World Series at 12/1 before the season started. If the Dodgers make the World Series, you have two options. You could let your $100 bet ride and stand to win $1200 or you can bet on their opponent, the Red Sox, at +150 to win the Series. Let's say you bet $600 on the Red Sox and if they win, you would win $900 and lose the original $100 you bet on the Dodgers for a profit of $800. If the Dodgers were to pull off the victory, you would lose that $600 bet on the Sox, but make $1200, for a profit of $600. This is a perfect scenario where you can ensure yourself a small profit rather than nothing at all.

Advantages and Disadvantages of Hedging

Both the advantages and disadvantages of hedging your bet is really straight-forward. The main advantage of this strategy is that it offers the bettor a great deal of flexibility in managing the level of risk you are exposed to. If you are extremely close to landing a big payout via parlay, hedging affords you the opportunity to play it safe and ensure a profit is guaranteed. Furthermore, if you stand to make a loss on a wager and no longer want that exposure, you can hedge and reduce the number of units that will be lost.

The disadvantages of hedging are kind of hidden in the fact that just because you have the ability to reduce a potential loss, you are still guaranteed to take that loss. Just because you hedge and take a small win, you are still sacrificing the potential profit from the original wager. Using hedging to guarantee profits also has an associated cost as you are effectively paying a premium from your potential profits to cover the other side of your wagers.

Hedging Bets In Gambling

How to Hedge a Parlay Bet

If you are a parlay player, there is a scenario where 'hedging' could be used to lock in a profit at the tail end of a parlay. Let's say you bet a five-team parlay and the first four games have won. Instead of sweating out that final west-coast game between the A's and Mariners, you could simply make a bet on the other team in the final game of your parlay. By making an aggressive enough bet, you could make it so that your winnings would be the same regardless of the actual result. If the payout of your original parlay isn't large enough to consider 'hedging your bet', then you have to wonder if this kind of bet is a bet you should have made in the first place, given what we know about true odds.

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