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Term
Hedging
Quick Summary
Hedging in sports betting means placing an additional bet that opposes your original wager. The goal is to reduce risk, lock in profit, or limit downside when game conditions change. This guide explains how hedging works, when it’s used, and how bettors can evaluate its impact.
What Is Hedging?
Hedging is the act of placing a second wager—typically on the opposite outcome of your original bet—in order to reduce exposure or secure a partial return. It is common in:
- Futures betting (e.g., tournament outcomes)
- Parlays (when only one leg remains)
- Live betting (after an early lead)
Hedging does not guarantee a profit, but it offers flexibility and control over volatile situations.
Hedging vs. Arbitrage
Feature | Hedging | Arbitrage |
Purpose | Reduce risk or lock in returns | Lock in guaranteed profit |
Timing | After original bet is placed | Before event begins |
Execution Type | Reactive | Pre-emptive |
Risk Level | Low to moderate | Very low (if executed properly) |
Example of a Hedged Bet
You bet $100 on the Chiefs at +200. They take an early lead. The live line shifts, and the Bills move to +400. You place a $50 hedge on the Bills:
- If Chiefs win: +$200 – $50 = $150 profit
- If Bills win: +$200 – $100 = $100 profit
Both outcomes return money, though not the full payout of either original bet.
How to Hedge a Bet
- Place your initial bet
- Watch odds and game developments
- Calculate the hedge amount
- Place the second (hedge) bet
- Let the event conclude
Use a hedge calculator or manual math to evaluate your net result in different scenarios.
When Hedging May Be Useful
- When a futures bet gains value
- When only one leg remains in a parlay
- During live games after a lead or momentum shift
- When you want to reduce variance on a large wager
Considerations
Advantages
- Risk management
- Partial or full profit lock
- Emotional ease in high-stake situations
- Better control over bankroll outcomes
Tradeoffs
- Reduces total potential profit
- Can be mistimed or miscalculated
- May not be available at all sportsbooks in real time
- Can become counterproductive if overused
Best Practices for Hedging
- Monitor real-time odds closely—hedging windows are often brief
- Don’t hedge blindly—run the numbers on both sides
- Consider partial hedging to keep upside while limiting risk
- Use reputable books with stable live markets
- Time the market carefully—odds shift fast in volatile game moments
Frequently Asked Questions
What does “hedging your bets” mean?
It means placing a second wager that offsets your first bet, usually to reduce risk or guarantee some return.
Is hedging the same as cashing out?
No. Cashing out accepts a fixed offer from the book. Hedging gives you control by placing a new wager manually.
Can I hedge a parlay?
Yes. If you’re down to one leg and it hasn’t started yet, you can hedge against the final outcome.
Can I hedge before a game begins?
Yes, especially if line movement or news shifts odds after your original bet was placed.
Can I lose money hedging?
Yes. If both bets lose or if the hedge eats into potential profit without reason. Hedging reduces risk but doesn’t eliminate it.
What types of bets are easiest to hedge?
Futures, moneylines, and multi-leg parlays with remaining outcomes are most straightforward.
When is the best time to hedge during a game?
When your original bet looks good and opposing odds lengthen, maximizing the value of a hedge.
How is this different from arbitrage?
Arbitrage guarantees profit across books pregame. Hedging is typically a reactive tactic used mid-bet.
Do sportsbooks support hedging?
They don’t offer it as a formal feature, but you can hedge using any available markets by placing your own second bet.
Can I use tools to track hedge timing?
Yes. Tools like The Advantage help you track live odds movement at sharp books, helping you recognize when a hedge opportunity might arise.
Learn More
Explore more articles on market movement and bet management at The Advantage, your resource for data-informed betting education.