Learn How to Hedge Your Sports Bet
Like the word suggests, hedging refers to the act of toning down the risk factor in your venture, in some way. In this case, in sports betting, hedging has to do with reducing the risk of losing when you place your bets. It’s more like when you want to get the most from your investment, you try to place your money in stocks that are more likely to gain in the coming future. Yet, still, you decide to diversify your investment so that it spans across several industries. In case an industry or particular stock experiences difficulties, the chances that the other industry will experience the same are low. It’s more of carrying an umbrella in your backpack even when you know it is a dry day. The weather might just change where we are going. The umbrella will be of much use. Remember, we do not lose anything by carrying an umbrella on such a dry day. Hedging is, indeed, just as helpful in betting.
One of the simplest ways to hedge is to place your money on the various outcomes of the game. You could bet for both teams to win. While such a decision may sound crazy at face value, it has proved to be extremely helpful time and again to routine and experienced betters. Hedging is, ideally insurance of sorts. We never know whether we shall ever be involved in an accident but we often take an accident cover anyway. While you do not need to hedge all the time, some situations call for it urgently. You should particularly hedge under the following circumstances in sports betting.
- When you stand a great chance of raking in a sure profit from a wager already in place
- When you decide to change a wager
- When you discover that you’ve blundered in placing a wager
- The bottom-line, as you may have realized in that you only need to use hedging following existing wagers that require some form of protection against risk.
Avoid hedging at other times, because there is no gain in betting both ways. You should only use hedging when on the arbitrage strategy for betting. Arbitrage betting is significantly different from just hedging. Arbitrage takes advantage of the price discrepancies you spot in the sports betting platforms. Hedging, on the other hand, has nothing to do with price discrepancies. Hedging is only used for wagers that are already in place. It may be done to minimize losses or even maximize profits.
Hedge for Sure Profits
It is rare to encounter situations when you have to hedge to secure profits but they arise, sometimes. If we were to use tennis, for instance, assume that Roger Federer is our choice to clinch the Spanish Open. If we place $10 doing 11 for the odds, the expected outcome would be a gain of $100. On the flip side, we lose $10 if Federer does not clinch the title. If Federer sails to the finals of the game after we have placed the bet, we could wager against his main competitor Boris Becker if the pundits give a hint of his possible win. Our hedge will guarantee us some return, irrespective of who wins. We could wager on Boris Becker half the amount we placed on Federer, so that either way, we would benefit, albeit with different margins. Remember, hedging is for existing bets. The bookmakers might give you a hint as to where your bet is headed. You can rush and salvage something for an imminent loss.