Do you bet to win – or not to lose?
Most of the betting enthusiasts don’t know how to achieve the strategy that will get them consistent profits. It’s highly likely because a lot of people use bets to just have fun and nothing more, which is the best way to treat them. But if someone considers minimising losses and securing small but regular profits over time as an idea worth trying, here’s a strategy that keeps on getting overlooked: hedge betting.
What is hedge betting?
The whole concept of hedge betting is quite simple: you just place a bet on both outcomes of a given event. The sound of this idea may be a bit contradictory, but the advantages can surprise you.
Check the example: You place a bet of 10$ on a team that it will win their game at an odds of 2.50. After that, you hedge by another bet of 10$ on them losing with an odds of 3.00.
Whatever the outcome, you now can’t lose your entire original bet. This significantly reduces your risk compared to if you only had one bet out. Try also looking for the best strategy in an aviator game too – it’s a lot of fun and doesn’t require analytics to prepare, just place a bet on a flying plane and cash out before it flies away.
Minimise risk and loopholes
Risk aversion is just one driving force behind hedge betting. Another major benefit is the ability to capitalise on differences in odds across bookmakers.
Imagine Bookie A offers 2.75 odds on your favourite team, while Bookie B only offers 2.50. You can place one bet at A and then hedge with the opposite outcome at B, effectively locking in a guaranteed profit regardless of the outcome.
This type of arbitrage makes hedge betting particularly attractive to professional traders trying to identify every profit opportunity.
Managing your bankroll
A more difficult aspect for many recreational bettors is the psychological cost of having to manage their losing bets. By hedging your bets, you can minimise the emotional impact of a loss.
This allows you to keep your cool and manage your bankroll with discipline rather than getting carried away by short-term emotional impulses. This puts you in a better position to continue your betting strategy in the long term.
Progressive hedging
The most advanced form of hedge betting is what is known as «progressive hedging». Here, not just a single opposite bet is placed, but a series of smaller hedge bets as the odds change.
Imagine again your initial bet at 2.50 odds. If your favourite teams are leading big at half-time, you can hedge a little by betting smaller amounts on the opposition at now lower odds. If the score changes again, you can hedge further.
This way, you lock in some profit regardless of the result, but also retain the upside potential if your original team wins comfortably. It provides a kind of ‘have your cake and eat it’ situation.
Is it worth it?
The hedge betting strategy sounds almost too good to be true. But there are also drawbacks and pitfalls to be aware of.
Firstly, you incur transaction costs by placing multiple bets, which eats into your profit margin. In addition, you miss out on the full gain by only winning that one bet.
Potentially more problematic is that intense hedging can be perceived as cheating by bookmakers, which can lead to restrictions or closed accounts. Professionalism and moderation are required.
The close link between hedge betting and arbitrage also means that governments may try to target the activity with legislation or special taxes in the future.
Finally, no one should forget that the formula still involves risk-taking. Progressive hedging is extremely complex and any miscalculation can result in huge losses.
Find your own balance
So is hedge betting a magical shortcut to safe profits, or just another advanced tool with inherent risks? The truth lies somewhere in between.
For the regular pleasure punter, the concept can provide more peace of mind and help minimise cruel downturns. The more serious trader can benefit from the ability to utilise arbitrage and progressive hedges.
The most important thing is to find your own balance and risk appetite. If you’re only playing for the occasional «king bet» win, hedging is less relevant. However, if you want greater stability and consistent profits, the strategy can be worth its weight in gold to master.
You can also choose to combine hedge betting with other common betting strategies like value betting and systematic bankroll management. The different approaches can support each other in unique ways.
What do you end up choosing? That’s entirely up to your personal style and goals. But one thing is certain – the best players rarely escape what hedging has to offer.