Smart bettors don’t just hope for the best; they manage their risk. Hedging is the practice of placing a second bet on a different outcome to either lock in a guaranteed profit (Green Book) or minimize a potential loss.
Our Hedging Calculator tells you exactly how much to bet on the opposing outcome based on your original wager and the current market odds.
How to Use the Hedging Calculator
You typically use this tool in two scenarios: Locking in a Profit (when your team is winning) or Cutting a Loss (when your team is losing but you want to salvage some of your stake).
- Original Bet Data:
- Back Stake ($): Enter the amount you originally bet.
- Original Odds: Enter the odds you secured when you placed that bet.
- Current Market Data:
- Hedge Odds (Opposite): Look at the live odds for the opposing outcome. Enter them here.
- Calculate: The tool will show:
- Hedge Stake: How much you need to bet on the opponent now.
- Guaranteed Profit/Loss: The net result regardless of who wins the match.
Example: Locking in a Profit (The “Green Book”)
Imagine you bet on an underdog, West Ham, to beat Man City at high odds before the match.
- Original Bet: $100 on West Ham @ 4.00. (Potential Return: $400).
At halftime, West Ham scores! The live odds change dramatically. Man City (the Opponent) is now offering odds of 2.00 to win/draw.
You want to secure profit now, just in case Man City comes back.
- Original Stake: $100
- Original Odds: 4.00
- Hedge Odds (Opponent): 2.00
The calculator tells you to bet $200 on Man City.
- Total Spent: $100 + $200 = $300.
- If West Ham wins: You win $400 from the first bet. Net Profit: $100.
- If Man City wins: You win $400 from the hedge bet ($200 x 2.00). Net Profit: $100.
You have just created a risk-free profit of $100, no matter how the second half ends.
Frequently Asked Questions (FAQ)
When should I hedge a bet?
You should hedge when the circumstances of the match have changed in your favor (odds shortened), allowing you to guarantee a profit. Alternatively, if the match is going badly, you might hedge to recover a portion of your stake rather than losing 100%.
What is the difference between Hedging and Arbitrage?
Arbitrage involves placing bets on all outcomes simultaneously at different bookmakers to profit from odds discrepancies. Hedging usually happens sequentially (e.g., placing a bet pre-match and then betting against it In-Play).
Does hedging limit my potential profit?
Yes. By hedging, you are sacrificing the maximum potential payout of your original bet in exchange for certainty (guaranteed lower profit). It is a risk-aversion strategy.