How to Use a Hedging Calculator

VegasInsider Staff Sports Betting Expert

15 minute read

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Hedge betting lets you minimize your risk when placing a sports betting wager. However, all the variables that go into deciding when and how to place a hedge bet make it difficult even for experienced bettors to follow this strategy. That’s where a hedge calculator comes in.

A hedge calculator lets you enter the odds of your original bet, your bet amount, and the hedging odds for the opposite outcome of the one you bet on. It will then tell you exactly how much to bet to guarantee a profit no matter the outcome.

Let’s take a look at this tool in action and discover the best way to use a hedge bet calculator and the hedging strategy.

The content on this page is for informational purposes only. Vegas Insider makes no representation or warranty as to the accuracy of information given or the outcome of any game or event.

HEDGE CALCULATOR EXAMPLES

To understand how to use a hedging calculator, let’s imagine a scenario similar to what you may face in your own sports betting.

Say there was a basketball game between the New York Knicks and the Boston Celtics. The Knicks are underdogs with +200 odds, while the Celtics are given -150 odds. You want a meaty payout from backing the underdogs, so you put a $50 bet on the Knicks.

How would you place a hedge bet in this scenario? The calculator can make it easy to figure out. Enter in your wager of $50 and your odds at +200, then the hedging odds at -150. The hedge bet calculator will give you a hedge bet amount of $90.

As the hedge calculator shows, a $90 bet at -150 would pay out $150, just about covering the $140 you put up on your original bet and hedge bet with a $10 profit. Now you’re guaranteed to earn some money no matter which team comes out on top.

Check out our free bet hedge calculator above to get started!

HOW TO HEDGE A PARLAY BET

You may be familiar with parlays, where you bet on the outcome of multiple games with a single wager. Hedge bets can help you reduce your risk with parlays as well. To understand how to hedge a parlay, imagine you had a four-team parlay bet on the Broncos, Jets, Raiders, and Ravens.

The Broncos, Jets, and Raiders all win their games, so your parlay (original bet) is starting to look good. However, the Ravens are the underdogs in their game against the Patriots.

To hedge your parlay, you can place a wager on the Patriots in the last game of your parlay. Now, no matter if your parlay falls through or not, you’ll be paid out either way.

Check out our parlay hedge calculator above for more.

HOW TO HEDGE A LIVE BET

Numerous sportsbooks offer live betting odds that change depending on the circumstances in the game. You can take advantage of these live bets to hedge your bets when it seems like the game is going against your original bet.

Say, for instance, you bet on the favored New York Rangers when they went up against local rivals the Islanders. After the second period, however, the Islanders are narrowly leading and look to be on course to pull off an upset.

Live odds will update to reflect the change in the game’s likely outcome. You can use this hedging strategy by placing a wager on the Islanders. You won’t get as lucrative odds as if you had backed the underdog in the first place, but you can recoup some of the losses from your original bet.

WHERE TO PLACE HEDGE BETS?

Here is our expert selection of the bookmaker where you can place a great Hedge Bet right away :

Updated on: 11/21/2024

WHY USE HEDGE BETTING?

Whether or not you’ll want to use hedge betting comes down to a number of factors. Bettors have varying priorities; the casual player putting a few dollars on the line will naturally use different strategies than an avid bettor.

Each player has to figure out the strategies that work best for them. Used properly, hedge betting can help to reduce the risk of your wagers or even guarantee you a profit no matter how the game concludes.

HEDGE BETTING TO REDUCE RISK

Naturally, placing a bet on both sides of a contest ensures that you’ll get some sort of payout. As always, the question comes down to weighing the costs of a hedging bet against the benefits.

Imagine a game between the Los Angeles Dodgers and the Washington Nationals. Say the Nationals are given +150 odds, while the Dodgers are favored with -200. You like the Dodgers for this game, so you back them with a $500 bet. You’re risking $500 to win $750 ($250 in profit).

However, days go by, and surprising pregame news shift the lines. An injury on the Nationals’ side takes the Dodgers’ odds from -200 to -250. Now, the Nationals have odds of +220. This is the perfect moment for you to hedge your original bet and reduce your risk.

Say that you now choose to bet $150 on the Nationals. That bet is risking $150 for a potential payout of $480 ($330 in profit). In total, you’ve staked $650. If your main bet on the Dodgers pays off, you’ll win $750, clearing a $100 profit. If your hedging bet on the Nationals pays off, you’ll win $480, with a net loss of $270.

In other words, you cut your downside risk by almost half: from potentially losing $500 to potentially losing $270. At the same time, you’ve cut your potential profits somewhat, from $250 to $100.

You’ll still lose money if you lose your main bet. However, because you used hedge betting, you’ve mitigated that risk considerably.

ADVANTAGES AND DISADVANTAGES OF HEDGE BETTING

Now that you know how to place a hedge bet, it may be tempting to apply the hedging strategy every time you’re placing a wager. But always consider the positives and negatives of hedge betting.

The advantages should be obvious from what we’ve covered. Betting on both sides of an event can minimize your losses or even guarantee you a profit no matter the outcome of a sporting event. Hedge betting makes your wagers more secure in this sense.

However, this strategy does come with a downside. By placing a hedge bet, you are also increasing the initial amount that you have staked on the game. Since both bets can’t pay off, you’ve also decreased the potential winnings you have on the table.

Ultimately, hedge betting is about a tradeoff between risk and reward. You decrease the risks you’re taking by guaranteeing a payout no matter the outcome, but you also have to put out more money and cut into your potential earnings. This balance between risk and reward comes down to each individual gambler’s priorities, resources, and preferences.

HEDGE BETTING CALULATOR FAQ

Do you have questions about using a hedge calculator? Take a look at our FAQ for quick reference.

WHY SHOULD I HEDGE MY BETS?

Hedge betting lets you minimize your risk when placing a wager. By betting on both potential outcomes of a game, you guarantee a payout no matter what the result is.

The tradeoff is that by investing more in your wagers, you cut into the profit you stand to earn. You could think of it as a tradeoff between risk and reward. Hedging your bets reduces the risk but also reduces your potential compensation in the end.

DO I NEED TO USE A HEDGING CALCULATOR TO HEDGE MY BETS?

No, you don’t need a hedge calculator. You don’t need just a tape measure alone to build a house either, but both tools help you get the job done accurately and with minimal effort.

Using a hedging calculator is the simplest way to know how to place the right hedge bet in order to guarantee profits no matter the outcome.

SHOULD I HEDGE MY PARLAY?

It depends. You could opt to hedge your parlay if one of your legs doesn't look like it's going to hit due to unforeseen circumstances like a late injury. In this example, you would just wager on the opposite of your original bet.

FINAL THOUGHTS

Hedge betting lets you minimize your risk when wagering. By betting on both potential outcomes in a matchup, you’re guaranteed a payout no matter what happens. This can help you mitigate your losses if your bet is incorrect. In the best scenarios with the right odds available, it can even guarantee a profit for you no matter who wins a game.

Using a hedge calculator tells you exactly what you need to wager to hedge your bets most efficiently. All of the complicated math that goes into figuring out how to hedge a bet is simplified with an easy-to-use tool. Add it to the resources that you’ve amassed as a bettor, and you’ll be on your way to making high-value bets.

If you want to know how to convert odds, check out our Odds Converter.

Other great calculators you can use to choose your best possible returns: