How To Hedge A Bet

To hedge, or not to hedge. That is often the question a lot of sports bettors ask with a potentially large payout on the horizon. But hedging is a confusing concept to many, and we often hear sports betting stories of people saying, "I should have hedged more," so what is the right amount to hedge?

Whether you're brand new to gambling and you landed here after searching "What does it mean to hedge a bet?" or you already understand hedging and just want more information on how to do it appropriately, you've come to the right place! This guide also offers some advanced hedging strategies, plus the pros and cons of different forms of hedging that even seasoned bettors can learn from.

What is Hedging a Bet?

Hedging a bet is the act of placing a wager that directly contradicts your original wager to secure guaranteed winnings and reduce losses on the original stake.

Original Wager

Team to Win Super Bowl	Odds
Buffalo Bills	+700

Let's say you placed the football wager above for a $100 wager at +700 odds on the Buffalo Bills to win the Super Bowl, and the Bills won the AFC Championship. Now you're one win away from winning $700. But, you're also one loss away from losing $100 if the Bills fall to the Eagles in this hypothetical Super Bowl matchup.

Hypothetical Super Bowl Odds

Team	Moneyline	Point Spread
Buffalo Bills	-154	-3 (-110)
Philadelphia Eagles	+130	+3 (-110)

In this scenario, betting on the Eagles moneyline would be a textbook hedge because then you'd have a +130 wager on the Eagles and a +700 wager on the Bills. This move would guarantee you some profit (with the right hedge amount) since there are no ties in the Super Bowl; one team must win.

You can hedge simply by opening up your favorite sportsbook app and placing a wager just like you did with your original bet.

Here is how different-sized hedges would impact your final outcome as a bettor who had already bet +700 on the Bills to win the Super Bowl NOTE: These figures were calculated by taking the money won on one side of the hedge and then subtracting money lost on the other side of the hedge. For instance, in the $100 hedge scenario, $130 was won on the Eagles, but then we must subtract $100 spent on the original Bills wager to land on a $30 profit if the Eagles win. :
Calculations: These figures were calculated by taking the money won one side of the hedge and then subtracting money lost on the other side of the hedge. For instance in the $100 hedge scenario, $130 was won on the Eagles, but then we must subtract $100 spent on the original Bills wager to land on a $30 profit if the Eagles win

Original Bet	Hedge Amount on Eagles Moneyline (+130)	Final Outcome after a Bills Win	Final Outcome after an Eagles Win
$100 on Bills +700	$0	$700	-$100
$100 on Bills +700	$100	$600	$30
$100 on Bills +700	$200	$500	$160
$100 on Bills +700	$300	$400	$290
$100 on Bills +700	$400	$300	$420
$100 on Bills +700	$500	$200	$550
$100 on Bills +700	$600	$100	$680

Notice how hedging provides some security in the form of guaranteed profit, but also decreases your best-case scenario. The best-case scenario ($700) is the Bills winning with no hedge, but that also carries the most risk, as it's the only scenario where you can come out of it losing money. Hedging reduces your best-case scenario in terms of overall profit, while providing you with security in return. You can think of it almost like an insurance policy to protect you from something bad (the Bills losing the Super Bowl) happening.

Our hedge calculator (pictured above) suggests a $347.83 hedge on the Eagles in this scenario, and that's an excellent starting point. To determine the exact amount of this hedge, ask yourself the following questions:

Do you still have conviction in the original Bills Super Bowl bet?
- Have there been any injuries or other factors that leave you less confident in Buffalo?
- If you now believe the Eagles will win the Super Bowl, then a heavier hedge is justified
Is $700 a lot of money to you?
- If $700 is life-changing money for you, then it's probably best to hedge and secure some of these winnings and not miss out on life-changing money
Do you plan to live bet the game?
- If you're going to hedge the game live, then a smaller wager may be more appropriate
- Realize that live betting carries more risk, and there's no guarantee you'll see the number you want in-game
How would you feel if you didn't hedge and the Bills lost?
- Would you be full of regret and kicking yourself for not hedging? If so, hedge.
- Are you unfazed by a Bills loss and flushing $100 down the drain? If so, then hedging may not be necessary

Advanced Hedging Strategy: Middling

What if, instead of betting on the Eagles moneyline (+130) in the example above, you actually bet the Eagles +3 (-110) point spread wager? Since the Bills are a favorite, taking the underdog Eagles with the points is still a hedge bet, but it also creates a lovely scenario where if the Bills win by exactly one or two points, then both your original bet and hedge bets will win 👀. Of course, the downside to this approach is that, in this situation, you're playing -110 odds instead of +130. You'll be wishing you had hedged the same amount on the moneyline if Philadelphia wins. Note: You could also do a hybrid hedge involving half your hedge stake on the Eagles moneyline and half of it on the Eagles +3.

Hedge Amount on Eagles +3 (-110)	Final Outcome If Eagles Win Note: If the Eagles win outright, you'll be glad you hedged, but you could have done even better hedging on the Eagles moneyline (compare with the chart above).	Final Outcome If Bills Win By 4+ Note: If this happens, you'll wish you hadn't hedged at all.	Final Outcome If Bills Win By 1 or 2 Note: You hit your middle. In other words, your original Bills wager hits and your hedge bet hits.	Final Outcome If Bills Win By Exactly 3 Note: In this scenario, your hedge bet on the Eagles +3 would push, you'd get your stake back (not a loss) and then you'd win your original Bills wager.
$0	-$100	$700	$700	$700
$100	-$9.09	$600	$790.91	$700
$200	$81.82	$500	$881.82	$700
$300	$172.73	$400	$972.73	$700
$400	$263.64	$300	$1,063.64	$700
$500	$354.55	$200	$1,154.55	$700
$600	$445.45	$100	$1,245.45	$700

Determining Hedging Strategy

Not sure which hedging strategy you want to use? This chart below breaks down all the pros and cons associated with the decision to hedge, not hedge, or put on your super hero cape and go for a middle.

Strategy	Pros	Cons
No Hedge	If the original bet wins, you'll be glad you didn't hedge Your max earnings on the original bet aren't reduced by a hedge	If the original bet loses, you'll wish you had hedged It's the only scenario where you can lose money from the original wager
Moneyline Hedge	Offers protection from losing the original stake and can guarantee a profit Costs less than middle hedging	If the original bet wins, you'll wish you hadn't No "Middle" if the original and hedge win
Middle Spread Hedge	Offers protection from losing the original stake Creates a (rare) win-win scenario where the original wager and hedge both win	If the original bet wins, you'll wish you hadn't If your hedge hits and the middle doesn't, you'll wish you had hedged with the moneyline Costs more vs. moneyline hedge

Common Hedge Betting Mistakes

Hedging too much or too little
- Our sports betting Hedging Calculator can keep you in check, but the exact hedge amount depends on many factors outlined above.
Creating "hedges" with loopholes where both bets lose
- Let's say your original bet is the Mavericks to win, and then you "hedge" with the Warriors -2.5. This is the kind of middle you don't want to see because if the Warriors win by exactly 1 or 2, both bets lose.
- Another example of this is using a parlay to hedge. Then maybe the hedge leg wins, but another leg loses, and now you have two losing wagers.
Hedging bets too often
- Hedging is a great strategy for the right circumstances, but it can definitely get out of hand if you hedge every bet you make and end up paying extra vigorish to a sportsbook.
Not shopping around
- Don't leave money on the table (see below)

Always shop around while hedging

Don't just blindly put your hedge bet in at the same sportsbooks you placed your original wager. Instead, shop around at the best sportsbooks available to you. In our example above, the Eagles were +130 underdogs, but it's normal for sportsbooks to vary and offer +135 or +140 for the same game. Unless you're in a state without multiple sportsbooks, you'd be foolish to settle for a +130 price if +135 or +140 is available. Furthermore, not only can you potentially get a price at another sportsbook, but you'll get lucrative welcome bonuses and promotions to use toward your hedge bet.

How To Hedge a Parlay

This guide has focused on a Super Bowl futures hedge bet scenario so far, but you could also hedge a contest-winning situation, the last leg of a big parlay, or even a straight bet if news has changed your conviction in a game before it starts. Live betting is also another opportunity to hedge, but that's not recommended for new bettors because the odds aren't as sweet in-game. It's also tougher to shop around and get the best price when odds adjust so quickly.

Some parlays pay a lot more than our +700 example above, so if you're wondering whether or not to hedge yours, it's a good question. I'd start by asking the same questions this guide laid out about your level of conviction on the final leg, and if the payout is life-changing money or not.

Also, keep hedging in mind when building your parlays. If you have a 4-leg parlay with all games happening at once, then hedging becomes virtually impossible. However, if you have a football parlay with a Thursday Night Game, Sunday games at different times, and a Monday Night game, then you have time to hedge along the way if there is injury news or anything else that changes your conviction level in future parlay legs.

How To Hedge a Spread Bet

If your original wager was a point spread wager (or perhaps a parlay and the last leg was a point spread wager), then you can hedge it with another point spread wager if the line is the same or the line moved in your favor. However, be careful if the line moved in an undesirable direction because you don't want a situation where your hedge bet attempt doesn't cover every scenario and you lose both bets.

For instance, if your original wager is the Falcons -4 and you hedge with the Saints +2.5, then you just created a scenario where a Falcons -3 bet is a disaster, and you lose both.