Hedge: Most common with parlay betting and as a risk management tool. Hedging a bet consists of betting on the opposite side of an original wager to set up a guaranteed return. A hedge bet may. What is Hedge Betting? First of all, hedge betting is not the same as arbitrage betting, which should be researched in a different article, although there are similarities. Arbitrage betting can occur when there is a discrepancy between the odds that two different bookmakers offer. This is different.
A hedge fund is an investment vehicle in which investors pool their money and purchase certain investments. Hedge funds aim to bring investors greater returns than they get in the stock market,. A hedge is a method to reduce risk and secure winnings for a specified bet. In sports, it means betting the opposite side of your original wager in order to either try to middle the game, or to reduce the downside exposure of the original wager. The most popular instance of hedging is for a futures. Dec 29, 2020 The emotional hedge bet: What it is and why Colts fans need to place it before Sunday. Meaning you can afford a generous tip for the good folks at an iconic local establishment who could.
To learn what hedging is and why you would ever want to hedge, see What Does Hedging Your Bets Mean?
Prevent A Loss By Hedging
What Does Hedge A Bet Mean
To win back your stake in a loss, divide your original stake by the price of the other side of the hedge and bet that amount.
Example:
You bet 100 on a futures bet with a price of 10.00, now you want to hedge out with the other side at a price of 1.60.
100/1.60 = 62.5
You should bet 62.5 on the other side. If your bet loses, you still win back your original stake, making the wager risk free.
Win The Maximum Amount By Hedging
To ensure you win the maximum amount on your hedge every time, use the following formula:
x = (p+b)/r
x = amount you should bet on hedge
p = the profit you stand to make on the first bet
b = the first wager you made
r = (decimal) price of the second wager
To calculate how much you stand to win, subtract the amount you placed on the hedge from the profit you stand to make on the first bet:
p – x = guaranteed return
Example:
You bet 100 on a futures bet with 10.00 odds, now you want to hedge out with the other side at 1.50 odds.
p = 900
b = 100
r = 1.5
x = (900+100)/(1.5)
x = 666.67
Hedge Your Bet Meaning
With this hedge you stand to make 900-666.67 = 233.33. That means you get 233.33 pure profit no matter what the outcome is!
Hedge A Bet Definition
Want to see how much you should bet on a hedge without doing the math? Check out our hedge calculator or Pinnacle’s arbitrage calculator to quickly see what the best stake is for your hedge!