Hedge Bet Calculator - NFL, NBA, MLB Sports Betting
Have you placed a bet but want to guarantee a profit? By hedging your bet, you can place additional bets to ensure you will receive a profit regardless of the outcome. This is a strategy to minimize your losses by betting on the opposite outcome of your original wager. This involves a formula to work out what stake and odds are required. Our Hedge Bet Calculator does all the hard work for you.
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Hedge Betting Calculator Description
Hedging your bet is a great insurance policy and with our hedge calculator you will not only reduce your losses but guarantee yourself a profit. Let’s take a look at an example to see how it works while rounding the amounts up for simplicity.
Hedge Bet Example
You place a bet on the Dallas Stars to win the Stanley Cup at the beginning of the NHL season. The odds at that time were +500 (meaning a $100 bet would win $500). You placed a $200 bet, so if the Stars win the cup, your total payout would be $1,200 ($200 initial stake + $1,000 profit).
As the season progresses, the Stars make it to the final, where they could hypothetically face the Edmonton Oilers. At this point, you want to hedge your bet to ensure a profit regardless of which team wins.
Possible odds for the Super Bowl:
Dallas Stars: -150 Edmonton Oilers: +130
Hedging Strategy:
To hedge your original bet, you will bet on the Oilers so you will need to stake enough on them to make a guaranteed profit, regardless of the game’s outcome.
- Calculate Profit from the Stars bet:
- Potential Profit from the Stars bet = $1,000
- Total Payout if the Stars win = $1,200
- Calculate Hedge Bet on Oilers:
- To cover your $200 initial stake and make a profit, you might consider placing a bet on the Oilers
- If you want to secure a decent profit, let’s say $300 regardless of the winner, you determine the hedge stake
- Determine Hedge Stake on Oilers:
- Desired Payout if the Oilers win = $500 (to secure $300 profit and cover $200 initial stake)
- Using odds of +130 (2.3 in decimal odds), the bet amount to win $500 = $500 / 2.3 = approximately $217.39
Outcome:
- If the Stars win:
- You lose the hedge bet of $217.39.
- You gain the $1,000 profit from the initial bet.
- Net profit = $1,000 (Stars profit) - $217.39 (Oilers stake) = $782.61.
- If the Oilers win:
- You lose the initial $200 Stars bet.
- You gain profit from the hedge bet = $500 - $217.39 (Oilers stake) = $282.61 net profit.
Hedge Bet Calculator FAQs
A hedge bet is a strategy in sports (and financial) betting used to reduce potential losses or secure a guaranteed profit, regardless of the outcome of an event. The idea is to place one or more additional bets on outcomes different from your original wager.
To calculate a hedge bet, firstly you need to take into account the amount staked and potential profit on your initial bet. Then, you need to work out what odds you need for the opposite/additional outcome of your original selection. This will help define whether you will guarantee a profit or minimize potential losses.
To guarantee a profit you need to calculate a stake that, when combined with the potential winnings of your original bet, secures a net gain regardless of the outcome. To minimize a loss, calculate a stake where the possible outcomes offset each other, reducing the loss.
Our hedge bet calculator will compute this for you so you simply have to input the hedge bet amount and odds with your initial bet to work out how much you need to stake. This will ensure your hedge bet is successful.
It completely depends. If you do not want to make a loss on your initial bet and the odds of an alternative bet will minimize your losses or even guarantee a profit, hedging is the strategy to achieve this. However, people who bet simply for entertainment tend to avoid hedging as the risk of losing is part of the fun.
Dutching in sports betting is a strategy used to spread risk across multiple outcomes in a single event, with the goal of ensuring a profit regardless of the outcome. The technique involves placing bets on more than one selection in a market, so that if any of the bets win, the bettor makes a profit. The stakes are calculated such that the total profit is the same no matter which of the bets is successful.
An arbitrage bet, also known as "arbing," is a betting strategy that takes advantage of differing odds offered by multiple bookmakers to guarantee a profit, regardless of the outcome of an event. This is possible when the combined odds across all possible outcomes of an event imply a probability of less than 100%, allowing bettors to cover all outcomes and secure a profit.
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