How to Hedge a Bet: Top 3 Methods

In sports betting, most people find themselves playing a game of chance. Managing risk and securing profits can be challenging, but not impossible, as there are a number of strategies to help you achieve these goals.

One of the most popular and effective approaches is “hedge betting”, a method that allows sports bettors to lock in guaranteed profits or minimize or eliminate losses by strategically placing additional bets. This blog will explore three key methods of hedging your sports bets: classic hedge betting, arbitrage betting, and matched betting.

Contents

1. Classic Hedge Betting
2. Arbitrage Betting
3. Matched Betting
4. Which Type of Hedge Betting Is Best?
5. How To Get Started Hedge Betting

1. Classic Hedge Betting

Classic Hedge Betting is a strategy used in sports betting and other forms of wagering to reduce risk or guarantee a profit by placing bets on different outcomes of the same event. The idea is to offset or "hedge" your original bet by placing an additional bet on a different outcome.

The Classic Hedge Betting method is used by both new and experienced sports bettors where an event's outcome becomes uncertain or the odds change dramatically during the game. Classic Hedge Betting can also be used to lock in some profit regardless of the final result when an original bet is looking favorable.

Classic Hedge Betting Example

Here’s how to hedge sports bets using the classic hedge betting method:

1. Initial Bet
   Place an initial bet (A.K.A ‘back bet’) on a specific outcome in an event. For example, the Dallas Cowboys are playing the San Francisco 49ers. You wager $100 on the Dallas Cowboys (Team A) to win the game at odds of +200.
   
   
2. Hedge Bet
   If something happens in the game, you can place a second bet on the opposite outcome. So if the Cowboys take the lead, but you’re not confident they can take it all the way, you could hedge your bet.
   
   To do this, you place a $50 bet at odds of -150 on the 49ers (Team B) to win. The sportsbook odds for the hedge bet might be less favorable because of the ongoing event, but it provides a way to cover the potential loss of your original bet.
   
   
3. Outcomes
   Outcome 1: The Dallas Cowboys win. Your original bet pays out at the original odds meaning that you make a profit of $200 (Total payout of $300 minus your initial stake). However, you lose the hedge bet. Calculate whether the profit from the original bet outweighs the loss from the hedge bet.
   
   Outcome 2: The 49ers win or cover the spread. In this scenario, the hedge bet wins, covering your initial bet’s loss. Depending on the odds and the stake, you might either break even or make a small profit.

Note: Odds will differ greatly from game-to-game, and there won’t always be a guarantee of a profitable hedge bet. It’s always important to check the odds before you bet.

2. Arbitrage Betting

Arbitrage betting, or arbing, is a sports betting hedging strategy that allows you to take advantage of the differences in odds provided by different sportsbooks.

Sportsbooks set their odds based on the probability of a certain outcome, so if they disagree with one another on these probabilities, they will offer different odds. By exploiting these discrepancies across sportsbooks - arbs - and betting on all outcomes using these differing odds, you can ensure that your total payout will be higher than the total amount you wagered.

Arbitrage Betting Example

Here’s an example of how arbitrage betting works:

1. Find an event with differing odds
   You’ve seen a basketball game where Sportsbook A is offering odds of +110 on the LA Lakers and Sportsbook B is offering -105 on the Boston Celtics.
   
   
2. Check whether this bet is an ‘arb’
   Check whether these mix of odds can guarantee a profit regardless of the game’s outcome (A.K.A an ‘arb’ bet). You can do this by using an arbitrage calculator or hedge calculator.
   
   Simply enter the odds on either sportsbook, enter the stake you’re wishing to place on bet 1/sportsbook 1, and the calculator will instantly tell you if this mix of odds is profitable. If not, you can keep looking.
   
   
3. Place your bets
   Once you’ve found an arb bet, you can go ahead and log onto both sportsbook sites, check your odds are the same and place your bets. Once both bets are placed, you're guaranteed to profit, no matter the outcome of the game.
   
   For example, let’s say you wager $100 on the LA Lakers at +100 at Sportsbook A, this will mean you’ll have to wager $90.91 on the Boston Celtics at +120 on Sportsbook B (as suggested on the calculator).
   
   
4. Outcomes
   Now, regardless of whether the Lakers or the Celtics win, you know you’ll come away with $9.09 profit. While this may seem like a small profit, repeating this process with arb bets consistently can lead to significant wins over time.

Note: Arbitrage betting opportunities can be rare and often disappear quickly as sportsbooks spot them and adjust their odds. Some sportsbooks set limits on how much you can bet, which can reduce your potential profit. They have also been known to restrict or ban accounts suspected of arbing.

3. Matched Betting

Matched betting is a popular profit-earning strategy that allows bettors to earn guaranteed profit from the free bets and promotions that sportsbooks use to attract new customers or retain their existing ones.

It’s often referred to as "risk-free betting" because, when done correctly, it guarantees a profit regardless of the outcome of a sporting event. The idea is to use a combination of opposing bets to cover all outcomes of an event, ensuring that you a) unlock a sportsbook promo risk free and b) convert that promo into guaranteed cash, regardless of the result.

Matched Betting Example

Let’s say DraftKings is offering new customers a ‘Bet $5 Get $150’ promo. To access the promo’s $150 free bet, you would first need to place a "qualifying bet" of at least $5, using your own money.

In this example, we’ll look at how to unlock the free bet and then convert it into guaranteed profit thanks to the matched betting method.

Qualifying Bet

1. Place your first bet
   The Chicago Bears are playing the Houston Texans in the NFL. You bet $5 of your own money on the Chicago Bears to win.
   
   This is known as a ‘back’ bet because you are backing the Bears to win. This first bet is placed at a sportsbook, such as DraftKings, which is running the free bet promo offer for new customers.
   
   
2. Place your second bet 
   Also known as a ‘hedge’ bet because you’re placing an opposing bet to your original one. In our example, this means that you would bet on the Houston Texans. This bet is placed at a different sportsbook eg FanDuel and ensures that all outcomes of the event are covered.
   
   Once this event finishes you will receive your $150 free bet promo from DraftKings. Next we’ll show you how you could turn into guaranteed profit with the matched betting method.

Convert Your Free Bet Into Cash

To do this, you follow the exact same process as before, placing two bets to cover all outcomes. However this time you would use your free bet from DraftKings on the first bet instead of your own money.

1. Use Your Free Bet
   For this bet, let’s pick another game. This time, let’s say that the Minnesota Vikings are playing the San Francisco 49ers. Instead of using your own cash, you would now place your bet at DraftKings using the $150 free bet you unlocked by completing the previous qualifying bet.
   
   
2. Place Your Second Bet
   You would then place an opposing bet (on the 49ers to win) at a different sportsbook.

Once the game has ended and your bets have been settled, you will have won. No matter what happens in the game, you will profit from the free bet, thanks to matched betting.

4. Which Type of Hedge Betting Is Best?

The hedge betting methods we’ve looked at here each offer unique advantages. Classic Hedge Betting involves placing bets on opposing outcomes to protect your initial wager, Arbing exploits discrepancies in odds across different sportsbooks, and Matched Betting uses promotional offers to generate guaranteed returns with minimal risk. But which is the best method?

When comparing Classic Hedge Betting, Arbitrage Betting, and Matched Betting, it's clear that each method has its own advantages. Classic Hedge Betting allows you to reduce risk or secure some profit by placing additional bets when the outcome of an event becomes uncertain, but it often reduces overall profit margins.

Arbitrage Betting guarantees small profits by exploiting discrepancies in odds across different sportsbooks, but opportunities are rare, and sportsbooks may limit or ban accounts engaging in this practice.

Matched Betting, however, stands out as the best option because it offers a reliable, risk-free way to earn guaranteed profits by leveraging free bets and promotions offered by sportsbooks. Unlike the other methods, matched betting ensures consistent profitability without the need for rare odds opportunities or the risk of account restrictions, making it an ideal choice for both new and experienced bettors.

5. How To Get Started Hedge Betting

If you're ready to start earning guaranteed cash through hedge betting, the simplest and most effective way to do so is with matched betting. By taking advantage of sportsbook promotions, you can systematically secure monthly profits in the $1,000s, risk-free.

At ProfitDuel, we make it easy for you to get started. Our platform is designed to help you navigate the world of matched betting with ease, providing you with the tools and support needed to turn promotions into real money. Join our members who are already earning thousands of dollars each month.

Sign up today with our special new member offer of just $49.50 in your first month of ProfitDuel Premium, and begin your journey toward guaranteed profits.