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Are you confused by hedging? Review the top hedging options for your next soccer bet?
Meaning of hedging and when to use hedging to reduce your potential downside and cover your multiple outcomes within your next selection?
Published on 25 May 2019
Updated on 25 May 2019
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Hedging is one of the most effective risk management strategies used by sports bettors. If you are unsure about the concept of hedging or want to have a deeper understanding of the basics, I recommend you read my previous post; Is hedging your football bets worth the risk?
Hedge definition…in betting
The protection against potential loss (or downside) of a wager by making additional wagers to balance the potential risk.
The following post provides a deeper review of hedging with specific examples of how to use your hedging money more effectively.
How to hedge a bet? Practical hedge betting examples
As described within the previous article; hedging is used to reduce risk or ensure a minimum betting profit.
In the world of football, hedging can be used in multiple scenarios.
For example, let us imagine you have wagered £50, at the beginning of the season, on Liverpool to win the Champions League 2018-19 at the odds of 15/1.
Now, as Liverpool have made it to the final and they play Tottenham for the trophy. Ahead of the final, the North London side are available at 6/4 odds to win while the Reds can only get you 1/2 odds.
You stand to earn £800 return (i.e. 15/1 odds = 16.00 decimal odds and £50 x 16 = £800 return) if your bet comes true, but you could also end up with nothing if Spurs manage an upset. In such cases, you can use hedging to ensure a guaranteed profit. If at this stage, you place a £250 bet on Spurs, you would be in for a guaranteed profit (i.e. 6/4 odds = 2.50 decimal odds and £625).
Case A: If Liverpool win the trophy, your total winning would be £800 – £250 = £550.
Case B: If Spurs win the trophy, you will win £625 on your second bet. Hence, this ensures a profit of 625 – 50 = £575.
As you can notice, hedging ensures a minimum of £550 profit. However, it could also eat away in your profit if your original bet comes true.
Similarly, the concept of hedging can be useful in other kinds of football betting markets too. We have put together some scenarios where you can use hedging quite easily.
Imagine you have bet on over 2.5 goals in a certain football game. In a lot of such cases, you would see your bets going to the edge. If your game is stuck at two goals (under/over 2.5 market) late in the second half, you can use hedging to reduce your risks.
Match Result Market
Let’s say you have bet on Team A to win the game. However, as the game approaches the half-time whistle, you don’t see your team picking up the win. In this scenario, you can use multiple approaches to hedge your bet and therefore, protect yourself against greater risk:
You can either…
1. Back Team B to win
2. Back the draw
3. Back Team B to win and the draw within the double chance market…
Choosing the option of backing both may not always provide the best returns but will help you to smooth out your losses in the event of making an incorrect wager. Obviously, you have not eliminated all the risk, but that’s the name of the game when it comes to placing bets on football matches!
Hedging is also very useful with accumulators.
Imagine, you have placed a four-way accumulator, and three bets have come true. Now, you are faced with an all-or-nothing situation. In this scenario, you can hedge your bet by putting some money on your fourth bet not coming true.
Hedging can also protect you against hasty or mistaken bets (h2)
On numerous occasions, we end up placing bets on a whim or without proper research.
Sometimes, we think that we have a winning bet on our hands, but the enthusiasm doesn’t last for long after placing the bet. Hedging can be used to reduce your damages in such cases.
If the game hasn’t started yet, you can simply bet a similar amount on your initial bet not coming true. In the end, you will only lose the bookmaker’s margin on your bet. Finding bookmakers that operate on low margins is a good place for hedging, as you’re losing smaller amounts in these circumstances.
We’ve all accidentally placed a bet. Either the initial wager was incorrect or make an incorrect selection. In each of these cases, you can use hedging to minimise your damages to the bookmaker’s margin and possibly retain more by not letting the bet ride on the final outcome or taking your chance with cash out options.
When to use hedging?
Hedging is an important weapon in the arsenal of a bettor, but it shouldn’t be used unnecessarily as it can reduce your profits. There are no perfect scenarios to use hedging, and it most likely depends on your instinct. However, there are some situations where hedging makes more sense:
When your second bet is also profitable
If hedging your bet means a guaranteed profit, like our Champions League final example, then it’s a very ideal scenario to hedge your bet.
When too much money is at stake
If you ever find yourself vulnerable in a bet with too much money at stake, don’t hesitate before hedging.
The below-mentioned formula, to calculate maximum profit when hedging, can also be used to make an informed decision.
A= (P + B1) / O
P: is the expected profit from your first bet
B1: is the amount of your first bet
O: is odds in decimal of your hedge bet or second bet
A: will give you the amount you should place on the second bet, and P-A would be your minimum guaranteed profit.
Taking a long-term view of betting and the probable outcomes will help you to decide on the best choices for your selections. Including hedging within your betting strategy may provide you with more profit turning options and ability to maintain a long-term success rate over time.
As described above, hedging will ultimately This can provide you more profits over the long term while smoothing out the ups and downs throughout your journey from novice to experienced punter.
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