Hedging in sports betting is a way of risk insurance when placing bets. Its concept is to stake on the opposite outcome of the game to the initial bet for reimbursement for the loss. Bookmakers do not ban such an action, since the method is only a kind of insurance on the risk of losing but not necessarily on profit. Players often check ratings on Rsa-bet.co.za to compare strategies and bookmakers, but the operator does not lose regardless of the outcome.
Example
Let us take an example of a football game played between Croatia and France. Let us suppose that someone feels France is going to win and bets 1,000 rupees against odds of 2.10. Along the course of the game, doubts begin arising about the outcome, and the player chooses to hedge by placing another bet on the opposite side of the outcome (Croatia not losing – 1X) at the odds of 1.85 for the same amount of 1,000 rupees. With the second bet, you insure your first bet against a big loss, reducing the risk but also capping your gain or even suffering a small loss.
Calculation of Possible Outcomes
Let us calculate the gain for different outcomes of the match:
- ● France wins: 1000 × 2.1 – 2000 = gain of 100 rupees (2000 is the value of both bets).
- ● Draw or Croatia loses: 1000 × 1.85 – 2000 = loss of 150 rupees, i.e., you have a very small deficit.
Of course, if everything had proceeded as it should and you had only kept the original bet, then you could have won even more: 1000 × 2.1 = 2100, and deducting from it the 1000 rupees bet, you have 1100 rupees of profit. But in reality, there was a high chance of losing the whole 1000 rupees deposit. That's why at times it is better to hedge yourself and lose 150 rather than the whole 1000, or gain 100 rather than what would have been 1100 if France had won.
Advantages and Disadvantages of Hedging Strategy
The advantages and disadvantages of hedging are obvious:
- ● Advantages: insurance against a complete loss of your bet.
- ● Disadvantages: limited gain — and the smaller the stake, the smaller the gain.
Hedging may be applied both in live betting and in pre-match, if new information falls into your hands, which raises doubts about the expected result. One must admit that in pre-match hedging, profit is almost impossible since the bookmaker has already fixed the odds.
Depending on the sum in the deposit and the probability, with this strategy in live mode, the outcome can vary: winning and losing bet, loss on both but minor, or in exceptionally rare situations, both winning. One such example of a double win is hedging an accumulator, if there is just one event remaining until success.
Conclusion
The hedging strategy is justifiable to utilize in extremis situations in live betting so as to limit losses from a losing bet, and, if feasible, to even earn a profit. But it is advisable not to utilize the method on a routine basis, as this only expands the bookmaker's margin and lessens your own profits. Hedging is also utilized by expert bettors who can offer fast responses to changing live odds.