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Pictured: Bryce Brown. Danny Donahue. Download App. You might win a whole bunch of money … Unless, of course, it loses. Well, you can. Enter hedging. What Is Hedging? Take the following as an example. Follow Danny Donahue. Top Offers. Follow Us On Social. Sportsbook Reviews.
In day to day life, someone can hedge many things. When someone hedges in sports betting they are limiting their exposure to a potential financial loss. 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 involves placing wagers on the opposite side of your original bet.
As futures bettting has become more popular, so has hedging. New sports bettors might have heard about the sports betting risk management strategy in mainstream media. If nothing else, hedging a bet has become a popular discussion point for any occasion when a sports bettor has a futures wager pending that could result in a large win.
Hedging a bet is a way to guarantee at least some kind of win. Even if a bettor thinks they might win, they could decide to hedge a bet just to be safe and guarantee they walk away as a winner. Futures wagers are long term bets that use a moneyline. Some individual games use a point spread while betting on other sports may involve a moneyline. A bettor can hedge against any of these types of wagers.
This strategy allows the bettor to walk away as a winner or less of a loser if they choose. Hedging a bet is protecting some kind profit that was — and still may be — possible from an original wager. Hedging a bet is done by placing a second wager against the original wager that will guarantee that the bettor sees some kind of profit at the end of the event. A bettor can hedge a future bet or hedge individual games. This example shows that a hedge on a futures bet is still a profitable wager.
The hedge protects the bettor from losing the entire potential profit from the wager.