Sports betting is largely viewed by many as an all-or-nothing endeavor. You either win your bet or walk away with a loss. However, there’s a third option that experienced and serious bettors know about: bet hedging.
Bet hedging is a powerful risk management tool that helps sharp bettors to secure guaranteed returns or minimize losses by placing opposing wagers. With this strategy, not only can bettors today manage their risk, but they can also ensure long-term profitability.
This article discusses everything you need to know about bet hedging, examining what it is, how it works, and when to utilize it to secure profits.
What is Hedging in Sports Betting
Hedging is a clever betting strategy that essentially acts as a form of insurance for bettors’ wagers. Simply put, it is a process that involves placing a second bet on the opposite outcome of an initial wager. The objective is to ensure a guaranteed win, regardless of how the sporting event unfolds. It eliminates the all-or-nothing risk of wagers and ensures that bettors either lock in some profits or minimize potential losses.
Bet hedging is made possible due to the unstable nature of odds movements. The odds provided for outcomes of sporting events are never fixed and often fluctuate due to many factors. The movement of these odds usually opens room for opportunities that bettors can explore to guarantee a win. Thankfully, the emergence of live betting on IPL betting app in India and other platforms has made bet hedging easier than ever.
How Bet Hedging Works?
At its core, bet hedging is a pretty simple process. It just involves bettors taking the effort to find opportunities where the odds available on opposing outcomes of games can guarantee payouts. Let’s say, for example, you wagered $50 on Team A to beat Team B in an IPL game at 1.35 odds before kickoff.
However, during the course of the game, you discover that while both teams are evenly matched, Team B has a good chance of winning. In. In that case, you can hedge your bet if the live odds movement creates an opportunity (e.g., $75 on team B at 2.10). Should Team A win, you will receive a $117.5 payout, resulting in only a net loss of $7.5 (i.e., payout – both wagers).
On the other hand, should team B win, you get a payout of $157.5. This will bring a net profit of $32.5 (i.e., payout – both wagers). With one outcome, you minimize your potential loss, and with the other, you earn a small profit.
When to Hedge Your Bets
Since hedging typically reduces bettors’ maximum payout, it is not always the right move in every situation. However, there are a few specific scenarios where it can be the smartest move you can make. This includes:
- Last parlay leg: One of the most ideal times to hedge your bet is when a parlay has reached its final game. Let’s say your 6-leg parlay has reached its last match with a $2,000 potential payout. If you do nothing, you can potentially win the payout or win nothing. However, by hedging the bet with the opposing outcome, you can guarantee a payout no matter the result.
- Future bets: Imagine you bet on an underdog to win the IPL championship at longshot odds of +5000. And as luck would have it, they somehow made it to the final game. This is another perfect time to hedge your bet by betting on the opponent to win. This way, you can guarantee a significant payout instead of risking it all.
- Momentum shifts during live games: Another ideal time to hedge bets is when the momentum shifts in a different direction. For example, if your team’s star player is injured and gets benched, your wager could be at risk. In this case, a bet hedge could help you exit your position and buy insurance.
Conclusion
Hedging bets is a clever strategy that every serious bettor should have in their arsenal. It is a proven risk management strategy that enables players to minimize losses and potentially lock in profits. It can turn a volatile, unstable position into a predictable, guaranteed win. All you need to do is constantly study the market and adapt to changing circumstances. When applied correctly and at the right time, hedging your bets can help ensure long-term success in sports betting.
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