What Is a Hedge Bet?
A hedge bet is a second bet placed against an existing position. Instead of remaining fully exposed to the original outcome, the bettor places money on the opposing outcome.
The size of the hedge determines how the final financial result is distributed between the possible outcomes.
How Does a Hedge Calculator Work?
The calculator starts with your original stake and original decimal odds. It then uses the odds available on the opposing outcome to determine the hedge stake.
Hedge stake = Original potential payout ÷ Hedge odds
The resulting hedge stake is compared with the original stake to calculate the total amount outlaid and the resulting guaranteed profit or loss.
Hedge Betting Example
Imagine an original $20 bet at decimal odds of 4.00. The potential return from the original position is $80.
Original stake
$20
Original odds
4.00
Potential payout
$80
If the opposing outcome is available at 1.50, the hedge stake calculated by this tool is approximately $53.33. The total outlay becomes approximately $73.33 against a potential return of $80.
What Is a Guaranteed Profit?
A guaranteed profit occurs when the return from the relevant outcome is greater than the combined amount of money placed across the original and hedge bets.
The result depends on the relationship between the original odds and the available hedge odds. A hedge does not automatically create a profit.
Why Hedge an Open Bet?
A bettor may consider hedging when the circumstances surrounding an existing bet have changed, when new odds become available, or when they want to reduce their exposure to the original position.
Hedging also changes the original risk and return profile, so the final result should be considered before placing the second bet.
Hedge Calculator FAQ
What is a hedge bet?
It is a second bet placed on the opposing outcome of an existing position.
How much should I hedge?
The required hedge stake depends on your original stake, original odds and the odds currently available on the opposite outcome.
Does hedging always guarantee a profit?
No. Depending on the odds, a hedge can result in a guaranteed profit, break-even result or guaranteed loss.
Can I use this calculator for live betting?
Yes, the mathematics can be used with live odds, provided the opposing market is available and the odds you enter are accurate.