What is Hedging Bets?

Hedging bets is the ultimate loss-mitigation strategy in the world of sports betting, and is in the back pocket of every professional bettor’s arsenal. Basically, it’s the practice of offsetting your potential losses by betting on multiple different outcomes, which can be utilized across multiple popular bet types.

This page is all about the importance of hedging bets (in moderation of course). We go through all the key definitions you need to know, helpful examples for all your favorite sports, and some important tips to make sure you get started on the right foot.

How Does Hedging Work in Betting?

When it comes to sports betting, hedging your bets is a strategic approach that involves placing additional wagers to minimize or counteract potential losses on an existing bet. The fundamental concept is to create a diversified portfolio of bets that can mitigate the impact of an unfavorable outcome.

For instance, let’s consider a scenario where you’ve initially placed a pre-game wager, but as the game progresses, it becomes evident that your initial selection is unlikely to be successful. Rather than passively accepting a full loss, you can employ hedging strategies to your advantage. This often involves utilizing live betting, where you place a new bet on the opposing side to secure at least some return, even if it’s not as substantial as your original wager.

Hedging isn’t restricted solely to in-game betting; it’s also a valuable tool in futures betting. In markets where there are numerous potential outcomes, such as league champions or major award races, or in sports where many contenders vie for victory, like golf or NASCAR, bettors often employ hedging strategies to increase their chances of realizing a return on their bets.

How to Make a Hedge Bet

Hedge betting is entirely legal, and it’s a strategic approach that many bettors use to optimize their wagers. It involves placing bets on different outcomes of the same event to manage risk or enhance potential returns.

For instance, if you initially bet on a soccer team to win a match but observe that adverse weather conditions have turned the game into a muddy struggle, you could hedge your original bet by placing another wager on both teams to draw. This way, you balance your risk and create more opportunities for profit.

Hedge betting is a valuable tool that allows you to adapt to changing circumstances or insights as a game progresses. Whether you’re fine-tuning your strategy or safeguarding your investment, making a hedge bet empowers you to maximize your chances of success in sports betting.

Can You Hedge a Futures Bet?

Absolutely you can hedge futures bets! It’s perhaps the most popular form of bet hedging, especially in challenging-to-predict markets like league champions or award winners. These bets often involve numerous potential outcomes, making it difficult to select a single winner accurately.

To address this uncertainty, many bettors choose to hedge their futures bets by selecting multiple strong candidates rather than placing all their hopes on a single outcome. While this approach may limit your maximum potential profit, it significantly enhances your chances of realizing a return on your bet, providing a more balanced and risk-conscious approach to long-term wagers.

Can You Hedge a Moneyline Bet?

Hedging a moneyline bet largely depends on the specific sport you’re wagering on. In sports with numerous potential winners, such as golf, NASCAR, or tennis, hedging often involves selecting two or three different options. This approach spreads your risk by covering multiple potential outcomes.

However, in team sports like basketball or football, it’s often more strategic to wait until the game has commenced and the betting lines have adjusted in your favor. This can provide a more advantageous opportunity to hedge your initial moneyline bet. Timing is key when hedging moneyline wagers, as the odds and game dynamics can shift rapidly during play.

Can You Hedge a Spread Bet?

Hedging a spread bet can be achieved through two primary methods. First, arbitrage betting involves placing a bet on one side with one sportsbook and then betting on the opposing side with another sportsbook, ensuring a profit regardless of the game’s outcome.

Second, live betting allows you to adapt to evolving game scenarios. You can wait for in-game events to change the lines and then hedge your original spread bet using updated odds.

Can You Hedge an Over/Under Bet?

Hedging an over/under bet, particularly with player props, provides a diverse range of options for risk management that you won’t find on other bet types.

Consider an example from the NFL: your initial bet is on Ravens receiver Odell Beckham Jr. to amass at least 75 receiving yards. However, after the first half, you observe that Baltimore’s ground game is dominant.

In response, you decide to hedge your original bet by placing a wager on Lamar Jackson to rush for over 50 yards in the second half – yes he’s a QB but it’s possible! This adjustment reflects the changing dynamics of the game and allows you to adapt your bets to maximize your potential return while managing risk effectively.

Hedge Betting and Your Bankroll

Hedging can be a potent tool to dull potential losses in sports betting. However, it’s crucial to maintain a clear perspective on your bankroll and responsible betting practices. While hedging can help recoup potential losses, using it excessively can also hinder potential profits.

Effective bankroll management involves using hedging judiciously, only in situations where you lack confidence in the success of your original bet. It’s essential to strike a balance, using hedging as a strategic tool while not overly relying on it.

Always remember to bet within your means, keeping a close eye on your bankroll’s health to ensure a sustainable and enjoyable betting experience.

Are Hedge Betting and Live Betting the Same?

Live betting and hedge betting, while related, are not synonymous. Hedge betting is a broader concept that encompasses various strategies to manage risk. Live betting can be a form of hedge betting, but they are not interchangeable.

Hedge bets often involve live betting when you adjust your bets based on real-time events during a game. However, hedge bets can also apply to futures bets, providing flexibility in managing long-term wagers. Live bets, on the other hand, can cover a wide range of scenarios and are not inherently hedge bets.

You can place live bets without always needing to hedge them, offering diverse opportunities for in-game wagering beyond risk management.

Hedge Betting Examples in Sports Betting

Depending on the sport you’re betting on, hedge bets can take on all different sizes. To help you get an idea of times you should consider hedging your bet, we’ve put together some examples across the most popular sports you’re likely to come across as a bettor.

NFL

In an NFL matchup featuring the Cincinnati Bengals and the Cleveland Browns, you initially believe the Bengals will secure a victory. However, you harbor doubts about their ability to cover the spread. To manage this, you place a bet on the Bengals winning the game outright. Simultaneously, you decide to hedge your bet by wagering that they won’t cover the spread, thereby lessening potential losses if the game proves to be closer than anticipated.

NBA

Consider the NBA MVP race. At the season’s start, you place a bet on Jayson Tatum to emerge as the league’s Most Valuable Player, confident in his abilities. As the season progresses, Tatum remains a contender, but so do other players, like Nikola Jokic and Giannis Antetokounmpo. To secure a safer outcome, you hedge your original bet by placing wagers on these other strong contenders, ensuring that no matter who wins, you’ll have a winning bet.

MLB

In an MLB game featuring the Houston Astros and the Los Angeles Dodgers, you initially bet on the under for total runs in the game. However, after witnessing a high-hitting first inning where both teams seem poised to score, despite failing to do so, you change your perspective. Seeing sportsbooks adjust the run line, you decide to hedge your initial bet by placing a smaller wager on the over, thus safeguarding against potential losses if the game turns into a high-scoring affair.

NHL

In a hockey futures bet focused on the Rocket Richard Trophy for the NHL’s top goalscorer, you initially back Andrei Svechnikov, who enjoys a scorching start to the season. However, as the season progresses, Svechnikov’s performance declines, and other players like Connor McDavid and Auston Matthews gain momentum. To limit potential losses, you hedge your original bet by placing wagers on McDavid and Matthews, ensuring that even if Svechnikov falls short, you have winning bets riding on the other top contenders.

Soccer

Imagine a North London Derby between Arsenal and Tottenham. Initially, you place a moneyline bet on Arsenal, expecting them to secure the win. However, as the soccer match unfolds, Tottenham displays remarkable form, and you start having doubts about Arsenal’s chances. To soothe potential losses, you decide to hedge your original bet by placing a bet on Spurs.

Combat Sports

In a thrilling boxing match featuring Deontay Wilder, you study his opponent’s exceptional defensive skills and, therefore, bet on the fight going the distance. However, as the first round unfolds, Wilder lands powerful punches, indicating an early knockout might be possible. To protect your original bet, you hedge by placing another bet on Wilder winning by knockout.

Tennis

Picture a tennis match between Rafael Nadal and Carlos Alcaraz. Here, you employ an arbitrage betting strategy. Initially, you place a bet on Nadal at one sportsbook. Then, as you explore other sportsbooks, you discover better odds for an Alcaraz victory. By betting on Alcaraz at these favorable odds, you hedge your initial bet, guaranteeing a profit no matter the match’s outcome.

Hedge Betting Tips

Before we send you out to hedge bets like a pro, we have a couple more servings of knowledge for you to digest. These aren’t advanced betting techniques that require a supercomputer to figure out, just simple tips that will help you make informed decisions about when to hedge your bets.

Hedge When You Have Options

Hedging sports bets becomes particularly important in situations where multiple outcomes are plausible. Sports like NASCAR, Golf, or Tennis, with numerous competitors, present ideal scenarios for hedging. In such cases, it’s wise to hedge your bets by selecting a few favorable options rather than betting on a single outcome.

The same principle applies to futures bets. Consider picking two or three teams you believe have a strong chance of winning the championship instead of staking everything on one.

Don’t Hedge for the Sake of It

Hedging sports bets can be a valuable strategy, but it should always be a calculated move. Don’t fall into the trap of hedging just for the sake of it, as this can reduce your potential profits. If you’ve thoroughly researched and analyzed your initial bet and have strong confidence in it, it’s often best to let it ride.

Hedging should come into play when circumstances change or new information emerges that impacts your original bet. It’s a risk management tool, not a reflexive action. Making informed decisions and understanding the underlying reasons for your bets can help you strike a balance between minimizing potential losses and maximizing your gains.