Hedging is often considered an advanced investing strategy, but the principles of hedging are fairly simple. With the popularity of hedge funds, the practice of hedging is becoming more widespread. In sports betting is ne of the most profitable practices which makes the fact that the majority of the betting public does not use the tool that much more surprising. Hedging is quite simply an investment position intended to offset potential losses and improve potential gains based on an outcome that is yet to be decided. The very best professional sports bettors do an excellent job of reducing their risks across the board by securing winnings through hedging in order to secure profits.
The concept of hedge betting involves placing bets on different outcomes subsequent to an original bet in order to create a situation where there is a guaranteed profit regardless of what the outcome of the event is. Circumstances are always changing in sports and the best bettors are those that are able to identify these changes and make the necessary adjustments. Get all the latest Sports Betting updates on your social media outlets. Find us on Facebook!
For example, let’s pretend the San Diego Chargers are favored to beat the Oakland Raiders at home by 3.5 points and you take them to cover the spread. Entering the third quarter, the Chargers are up by 14 points when star quarterback Phillip Rivers is injured. At this point, the in-game line will have been adjusted based on the score and the fact that Rivers is hurt. Let’s pretend that the line at this point moves to Chargers -9.5 points. In this situation, hedge betting would require taking the Raiders to cover the 9.5 points with the hope that the final score ends up in the middle. The fact that you have locked in San Diego at -3.5 and Oakland at +9.5 means that there is no possible way to lose money. However, if the Chargers win by 4, 5, 6, 7, 8 or 9 points then both wagers hit and you will win both bets. It’s a simple concept that isn’t applied nearly enough by the public but hedge betting does work.
Another interesting approach to hedge betting is taking the winner of a tournament. Let’s use tennis as an example. Anybody that takes Novak Djokovic to win Wimbledon will get him at fairly short odds. In this example, we will use Djokovic at +400 to win Wimbledon. The strategy for hedge betting on a tournament winner is to follow their path to the later rounds and then decide when is best to cover your bases. In this case, we will wait until Djokovic plays a tough match in the semi-final in order to hedge our $100 bet. In the semi-final, we will put $75 on Djokovic’s opponent with a potential payout of $100. If Djokovic wins, then our $100 bet to win $400 on him winning the tournament is still in play. If Djokovic loses, then the $75 hedge bet we have made on his opponent will cover the $100 w lost betting on Djokovic to win the tournament.
Hedge betting is a very popular tool among professional sports bettors, it certainly is one profitable practice, put it to use at Betregal.com.