We all know there’s a lot of risk involved in sports betting. You can’t really know what will happen, as even though you can do proper research, it’s still a matter of probability. This usually prompts sports betting enthusiasts to look for different ways to reduce the risk involved. One of the methods usually mentioned is hedging.
This technique has been borrowed from investments, but it can greatly help you not only minimize losses but also ensure that you make a profit. Today, we’ll tell you all about it.
Bet Hedging & How It Works
Hedging a bet is essentially placing a second bet that takes a different stance from the first one or even completely goes against it. The aim of this is usually to reduce the risk involved in the bet or ensure that you take home a profit.
To do this, hedging is based on events that may have happened since the initial bet and odd changes over time. For example, when using a PA Sportsbook, you can place a pre-season wager of The Steelers as underdogs to win the AFC championship. The bet is $100, and the odds are +2000.
The Steelers then do exceptionally well and reach the AFC final. Now, you stand a good chance of winning $2000 if the Steelers win. However, they face the Kansas City Chiefs in the finals, who are the favorites at -300.
You can decide to do nothing about it and win $2000 if the Steelers win or lose $100 if the Chiefs win. However, you can also take advantage of the fact that the Steelers have reached the finals to guarantee yourself a win.
Making a second wager of $500 in favor of The Steelers will completely change the math. If your initial bet wins, you now stand a chance of winning $1500 (2000-500). If the Chiefs win, your second bet will win and guarantee you a profit of $400 (500-100).
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Options for Hedging Your Bet
Futures Betting
As we have seen above, betting on Futures offers you a chance to take advantage of hedging. This is because these types of bets usually last for a long time, such as a season or several months. A lot can change within that time, resulting in a huge change in the odds.
If your futures bet shows some promise early in the season and something changes the circumstances, you can hedge. Look at the possible outcome at that time, then place another wager to reduce the losses or even help you secure some winnings.
Parlay Bets
If you have combined several bets into one wager, you have a chance to win big. However, the amount of risk is also huge. You have probably heard of people who placed a parlay bet with huge potential winnings, and only a single bet failed them. If you have 5 bets and four have worked in your favor, you have a good chance of edging and ensuring a win. Since your parlay bet wager was most likely small, you can easily place a contradictory bet for the last game and ensure you walk away with something.
Live Betting
Live betting also offers a great opportunity for hedging your bets, as things can change dramatically when the game is in play. These changes usually have an instant impact on the odds to reflect the new probabilities.
For example, if you have placed a bet on the underdog to win a game, you may find yourself happy but cautious situation when the underdog scores two quick goals early in the game. The odds are now favoring your team, but there’s still a good chance of a reversal. But since the odds for the favorite have increased, you can also bet on them. This will allow you to either reduce the risk or lock down some winnings.
