HEDGE CALCULATOR

1. What is a Hedge Calculator?

A hedge calculator is a sports betting tool that helps bettors identify hedge betting opportunities. After inputting your initial bet (A.K.A ‘back bet’) stake and odds, the calculator calculates how much you need to place to hedge your bet and how profitable this will be.

Also known as a hedging calculator or hedge betting calculator, this tool not only helps bettors remove or reduce the risk of their sports bets, but can help provide an introduction to more profitable smart betting strategies such as matched betting and arbitrage betting.

2. How Do I Use a Hedge Calculator?

Hedge calculators can be used in different ways depending on the desired outcome. To use a hedge calculator to ensure a profit no matter the outcome of a sporting event (in the same way you'd use an arbitrage calculator), follow these five steps:

1. Identify two different sportsbooks that provide odds on the same event but with opposite outcomes.
   
   
2. Input these odds into the arbitrage calculator. For example, your 'Initial Bet' could be on team 1 to win, while your 'Hedge Bet' would be on team 2 to win.
   
   
3. Enter the amount you intend to wager on your initial bet.
   
   
4. The calculator will then show the amount you need to stake on the hedge bet to achieve the indicated profit. If the profit is negative (shown with a '-' symbol), this indicates it's not a profitable hedge betting opportunity.
   
   
5. Place your bets at the respective sportsbooks and wait for the event to conclude to collect your winnings.

3. Worked Example

To understand how this process of using an arbitrage calculator would work in a real-world context, we've added an example below:

1. The Buffalo Bills are playing the New York Jets and you find the following odds from two different sportsbooks: Bills to win -385 (Caesars), Jets to win +420 (BetMGM).
2. You enter the odds into the hedge bet calculator, entering -385 as your original bet and +420 as your hedge bet.
3. You wish to stake $100 on your original bet (Bills to win) so you type '100' into the 'Initial Bet' cell.
4. The calculator now tells you that if you place $413 on your hedge bet, at the given odds you will make a total profit of $7.27, regardless of the outcome of the game.
5. Now you've calculated this, you go ahead and place your above selections with Caesars and BetMGM. Wait for the game to finish and receive your winnings.

4. How Does a Hedge Calculator Work?

You can learn how to use a hedge calculator with the method above, but if you're interested in understanding the mechanics behind it, here’s a breakdown of its four main steps:

1. Variance Analysis: The calculator first determines the variance by comparing the odds between the two sportsbooks.
   
   
2. Profit Percentage Calculation: It then evaluates whether the variance between the odds is sufficient to generate a potential profit, and calculates the profit percentage based on the initial bet.
   
   
3. Specific Profit Calculation: Once the profit percentage is known, the calculator computes the exact profit amount the bettor would gain from the given odds. This is done by multiplying the profit percentage by the original stake.
   
   
4. Optimal Hedge Bet Display: Finally, the calculator shows the optimal amount to place on your hedge bet to secure the calculated profit.

5. Hedging vs Arbitrage Betting: What's the Difference?

Arbitrage betting takes advantage of price discrepancies within a market, most commonly in sports betting, to ensure a guaranteed profit. This is achieved by placing bets on all potential outcomes of an event, resulting in a positive return no matter the result.

This is slightly different to hedge betting, which is a risk management approach, where a bettor places extra bets to reduce the potential losses from their initial wager (or even to lock in a specific profit).

Though hedging is a component of arbitrage betting, it is can be applied to other smart betting strategies such as matched betting, and even broader financial activities/options such as trading and investing.

6. 2 Way vs 3 Way Hedge Calculator: What's the Difference?

A 2-way hedge calculator is specifically designed for situations with two possible outcomes, such as sports betting scenarios like an Super Bowl game, where one team must emerge victorious.

Alternatively, a 3-way hedging calculator is suited for events that have three potential results, such as soccer matches, where outcomes include a win, loss, or draw.

Although, 4-way hedge calculators, 5-way hedge calculators and more complex parlay hedge calculators available, they are less commonly used.

For swift simple and effective hedge calculations, 2-way and 3-way hedge calculators are generally preferred, both of which are options with our calculator.

7. 5 Tips When Using a Hedge Calculator

Mastering the use of a hedge betting calculator is straightforward once you're familiar with a few basics. However, applying these five key tips can help take your hedging profits to the next level with this handy tool:

1. Understand the Calculator: Familiarize yourself with the calculator's functionality, including various odds formats and the 3-way hedge option. This knowledge will allow you to quickly calculate profits and seize valuable hedging opportunities without delay.
   
   
2. Maintain Normal Betting Patterns: Hedge betting offers an advantage over the sportsbook/betting exchange, making it an unpopular practice with some companies, even though it's completely legal. To avoid drawing attention to your account and facing potential limits, it's important to maintain betting habits that appear normal and avoid unusual patterns.
   
   
3. Use Additional Tools: While a hedging calculator is a powerful tool for enhancing profits, combining it with other smart betting tools like a no-vig calculator and free bet conversion calculator can further maximize your returns and optimize your betting strategy.
   
   
4. Monitor Your Profits: Keeping track of your arbitrage betting profits can help you identify which opportunities are most and least lucrative. This can be done simply with a spreadsheet, but using specialized tools like a profit tracker can provide deeper insights and elevate your betting approach.
   
   
5. Explore Other Opportunities: Supplementing hedge betting with, with risk-free betting strategies like matched betting can skyrocket your betting profits. Use tools like a Dutch Matcher and Dutch Calculator to help convert sportsbook promos into profits in the $1,000s.

8. How to Make Money Hedge Betting

While classic hedge betting using tools like a hedge calculator can be a handy strategy to reduce bet risk, without doubt the most powerful hedge betting strategy for making money is matched betting.

An intelligent and completely legal strategy (in states where sports betting is available), matched betting involves unlocking a sportsbook promo (like a free bet) risk-free by hedging your first bet, before repeating the process using your promo to earn a guaranteed profit.

It's a clever but super simple hedging strategy (with the right platform), and at ProfitDuel we're the experts in the field. To date, we've helped over 500,000 members across the U.S. and Europe earn monthly profits in the $1,000s with matched betting in their spare time (and growing).

And the best part? We're offering a special offer for new members of 7 Days full access to all of our software, guides and expert one-to-one support for just $1. Sign up today and we'll walk you through earning your first profit with minutes of work!