Hedging

Hedging is a risk management strategy in sports betting where you place a second bet on the opposite side of an existing wager to lock in a guaranteed profit or minimize a potential loss. In betting, hedging is most commonly used when a bettor has a valuable position – such as the final leg of a lucrative parlay or a futures bet that has appreciated in value – and wants to secure some return regardless of the final result.

The trade-off with hedging is straightforward: you sacrifice maximum potential profit in exchange for certainty. Without hedging, you either win the full amount or lose your original stake. With hedging, you guarantee that you walk away with something positive (or at least reduce your downside) no matter what happens. The exact amounts depend on the odds available for the hedge bet and how much you choose to wager on the opposite side.

Hedging is a personal decision that depends on your risk tolerance, bankroll size, and the specific situation. There is no universally correct answer about whether to hedge. Some bettors prefer to let their original wager ride for maximum value, while others prioritize locking in profit when the opportunity arises.

Example

You placed a $20 four-leg parlay at the start of the NFL season that pays $5,000 if all four teams win their division. Three of your four teams have clinched, and the final team is playing in the last week of the season. You can hedge by betting $2,200 on the opposing outcome at even odds. If your parlay hits, you win $5,000 minus the $2,200 hedge, netting $2,780. If the final leg loses, you win $2,200 from your hedge minus the $20 original parlay stake, netting $2,180. Either way, you walk away with over $2,000 in profit.

Key Points

• Locks in profit: Hedging allows you to guarantee a positive return on a valuable position, removing the risk of walking away with nothing.
• Reduces maximum upside: The cost of hedging is that you will earn less than if you had let the original bet ride and it won.
• Most common with parlays and futures: Hedging is frequently used when the final leg of a parlay is approaching or when a futures bet has become highly likely to win.
• Hedge calculators help with the math: Determining the optimal hedge amount requires calculating the right stake on the opposite side based on the available odds.
• Personal risk tolerance drives the decision: There is no single correct strategy. Whether to hedge depends on how much risk you are comfortable carrying and how significant the potential payout is relative to your bankroll.