Hedge Bet is a sports betting strategy where the bettors place a second wager against the original bet. Bettors place hedge bets to ensure they do not lose their original bet and guarantee a profit of some kind.
With time, the sports betting market has seen remarkable growth. The global sports betting industry amounts to 231 billion US Dollars in 2022. It expects to grow even quicker in the coming years. Thus, it is a profitable business and something that will attract more customers in the coming years.
Hedging Bets are also known as ‘Safe Bets’. It is because hedge bets save bettors in case their original bets fail to yield anything. It also allows bettors to cash both sides of the bet. Hedge bets might seem a bit tricky to some new bettors. But as they gain experience, they would get more exposure to the game and how to place hedge bets
In this article, we will discuss the ways to place hedge bets. We will also discuss how you can maximize your winnings while placing a hedge bet.
How to Place a Hedge Bet?
To understand better, let us consider the following example. Let us assume that you have bet on Mumbai Indians to win the Indian Premier League at +1000 ( INR 10 to win INR 100) before the start of the tournament.
Now, we are into the final league rounds of the tournament, and your bet looks solid. Also, that price does not exist in the market anymore. So, as things start looking easy for Mumbai Indians, their betting value might fall to as low as +180 to win the IPL.
Now, you have got two options:
- You go with the flow and wait for your bet to win.
- You place a hedge bet, in case you think Mumbai Indians might lose from the winning position.
Now, if you opt for a hedge bet against your original bet on Mumbai Indians winning, a bet may be offered at -250 (INR 25 to win INR 10). Even though a hedge bet might seem like a safer option, it can reduce your maximum winning capability. So, here is the new scenario.
If you do not hedge,
- Mumbai Indians win, and you get INR 100
- If Mumbai Indians lose, you get -INR 10
And if you hedge, bet INR 50 to win INR 20 on Mumbai India to not win,
- If Mumbai Indians win, you get INR 100-INR 50= INR 50
- If Mumbai India loses, you get -INR 10+INR 20= +INR 10
When to Place a Hedge Bet?
Knowing when to place a hedge bet could help you save millions. But it is tough to master this trick. There are different aspects that you need to think about the game before placing the hedge bet.
But first, you need to be a decent follower of the game. You must have a good understanding of the other team and the opposition. Also, one must have good knowledge of the way that the tournament has progressed in the past.
Lastly, you must ask yourself whether the bet that you have placed has better odds of winning, in comparison to the other odds. For instance, let us assume that to justify a -150 bet, you thought your bet has a 55% chance of winning. Also, for a +1000 bet, you could think that you have a 9.1% chance.
Also, if you think that your original bet has a slim chance of winning the bet. But when you place a hedge bet, you are more likely to win big. Thus, you must always go with the hedge bet. The entire situation also depends on your ability to take risks.
So, one can expect that there is no consistency while considering a hedge bet. You must consider all the mathematical equations and seek help from an expert, if possible, before placing a hedge bet.
To know how to calculate a hedge bet, visit the betting calculator.
Pros and Cons of a hedge bet
Hedge Bets have various advantages and disadvantages that bettors need to know before placing them. Some of its pros include:
- It eliminates the risk factor by creating a win-win situation for the bettor.
- Helps secure profits and returns, in case the original bet fails.
- Hedge bets allow you to explore different horizons on a bet, thus enhancing your betting and sporting knowledge.
While hedge bets could be profitable for some, certain disadvantages come with it. Some of them include:
- To reduce risks, a substantial profit is lost
- Hedge bets need better practice to perfect, hence someone with lesser knowledge and experience might lose big.
- To place multiple bets, you might need an initial larger outlay.
Hedge bets are the perfect form of bets that help in lowering the risks and ensure decent returns. Doing so helps remove doubts from a bettor’s mind, and allows him to bet without fear.
Hedge bets are like trading in a stock market. Even though the risk factor is high, you might still end up winning something, instead of losing everything by placing a single original bet. Hedge bets also promote the concept of responsible and safe betting.