What Does it Mean to Hedge a Bet? The Origins

We've all heard of the phrase "Hedging your bets", but outside of its informal use in everyday conversations, what does hedge betting actually mean? And how is it used as a profitable sports betting strategy?

Here we’ll explore the historical roots of hedging, tracing its journey from a medieval agricultural practice to its current use in modern sports betting strategies. Understanding where hedging comes from and how you could use it as a total beginner might just open up an attractive profit earning side hustle for you.

Contents

1. Where Does Hedge Betting Originate?
2. What Is a Hedge Bet?
3. The 3 Top Strategies for Hedging Bets
4. How To Get Started Hedge Betting

1. Where Does Hedge Betting Originate?

The origins of hedging are quite far removed from the worlds of sports betting and finance, but stick with us for a moment…

Believe it or not, the term "hedge" originates from medieval England. It comes from the agricultural practice of planting hedges around a field to create a barrier and protect crops from damage caused by the wind, animals or trespassers. The word itself comes from the Old English word "hecg", which referred to these types of boundary enclosures.

Over time, the concept of a "hedge" evolved to represent any type of protection or insurance against potential harm or loss. The phrase "hedge your bets" became a popular expression in the late 19th century, illustrating the strategy of playing it safe by not putting all of your money or resources into a single outcome.

Today, that same meaning remains, and it’s more than just a metaphor! In fact, the act of hedging your bets can be an incredibly profitable sports betting strategy.

2. What Is a Hedge Bet?

A hedge bet is a strategy often used in sports betting to reduce or eliminate risk. The idea is to place an additional bet, or bets, to ensure some level of profit and/or offset any potential losses from an original wager, regardless of the outcome.

Hedge betting, or simply "hedging," can also refer to a strategy commonly used in the financial world. For example, in stock trading, an investor might buy shares in a company while also purchasing options to sell those shares at a certain price. By doing this, they protect themselves if the stock's value falls.

Out of the two types of hedging we’ve just covered, hedging wagers in sports betting is the most simple to understand and make money from as a beginner. It also requires the least cash to get started with. If you’re interested in hedging sports bets, it might interest you to know that there are a few different hedge betting strategies you can use to get started…

3. The 3 Top Strategies for Hedging Bets

As we know, hedging is a concept born from the need for risk management and to guarantee value. So how is hedging used in sports betting?

In sports betting, hedge betting is used to lock-in profit or minimize potential losses, regardless of the outcome of a sports event or game. In simple terms: a wager is made on a sports team to win, but as the game progresses, it becomes clear that the outcome might go as expected. A second wager is placed in order to hedge the bet.

There are various methods bettors can use to hedge a bet, including classic hedge betting, arbitrage betting, and matched betting. Let’s take a quick look at those methods now.

Classic Hedge Betting

Classic Hedge Betting involves placing a secondary bet on the opposite outcome of an original wager in order to reduce the risk of loss, or sometimes even lock in a profit.

For example, if you bet on a team to win and they are leading during the game, you might place a hedge bet on the opposing team to cover potential losses if the game’s outcome suddenly changes. This approach is particularly useful when odds shift during live events, allowing bettors to adjust their positions to lock in a profit or reduce risk.

Tools: Hedge Calculator.

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.

Arbitrage Betting

Arbing takes advantage of discrepancies in odds offered by different sportsbooks. By identifying arbs and placing bets on all possible outcomes with various sportsbooks, a bettor can guarantee a profit regardless of the result. This method requires careful calculation and quick action, as arbitrage opportunities are often short-lived, due to rapidly changing odds.

Tools: Arbitrage Calculator.

Note: 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.

Matched Betting

Perhaps the most popular, profitable and easy-to-start hedging strategy is Matched Betting. This popular profit-earning strategy uses clever (but simple to use) software to turn free bets and promotions offered by sportsbooks into guaranteed profit.

The idea is to place opposing bets to cover all outcomes of an event, ensuring that you can unlock a sportsbook promo risk free and then convert that promo into guaranteed cash, regardless of the result of the event.

Tools: Dutch Matcher, Dutch Calculator, Free Bet Conversion Calculator.

Note: Promo offers carry their own terms and conditions so check these first to ensure your bets meet the required criteria.

4. How To Get Started Hedge Betting

If you're ready to start earning guaranteed cash through hedge betting but don’t want the risk of miscalculations or hours of scanning through sportsbooks, the simplest and most effective way to do so is finding a reputable matched betting platform. By taking advantage of their tools, expertise and 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 calculators, 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 50% off your first month of ProfitDuel Premium, and begin your journey toward guaranteed profits.