Hedge Betting Strategy. A strategy for reducing your risk

 strategy for reducing your risk

One of the key strategies expert gamblers use when betting with the sportsbook is hedging. Although this strategy is relatively popular among punters, only a small percentage know how it works and what it entails. If you have heard about how edging is efficient in securing more profits and reducing the risk of making a huge loss, then what you heard is correct.

The term hedging has been a thing in the world of finance for a very long time before it finally became an applicable strategy in the gambling world. Hedge betting in the world of sports gambling is used as a form of insurance or back up of the plan, just like a hedge fund. 
  • But how does one hedge bet? 
  • When is the right time to place a hedge bet? 
  • How effective is a hedge bet? 

These are all important subjects that will be discussed in this article. After reading this, we guarantee you will have more knowledge about hedge betting in South Africa and how it works.

The Basics of Hedge Betting

Sports betting like any form of gambling comes with uncertainties. That is why insuring stakes and finding a way to reduce potential losses (hedging) is often considered by pro gamblers. When a bet is placed on a particular outcome and the chances of winning such bet are reduced due to some changes, gamblers can then bet against such outcomes to ensure a soft landing. If hedging is done the right way, it will not only reduce potential loss but guarantee huge returns. A good example of when hedge betting can be introduced is when a team you have confidently wagered on lose their major goalscorer, their chances of winning are reduced and you are at risk of losing. It is then a good time to bet against this team or bet on the opposing team as a backup plan. One of the two teams will certainly win the game, this way you can reduce potential making a win since you have wagered on both teams.

Hedging is also a great strategy to use to guarantee winning when you place an accumulator bet. For example, you have made 7 selections and you have won 6, to ensure you don’t lose all your winnings when the last selection is lost, you can place a bet in favour of the opposing team. This will ensure you make a profit either way.

When to Consider Hedge Betting

Hedge betting can be done at different instances, depending on the time it is most needed. You may need to hedge your bet in-play or on a long term outcome. One of the instances comes in handy is when you have placed an outright bet on a team to win a competition, the value of such bet is usually high but the chances of winning are low has it comes with high risk. Let’s assume a 100 Rand is a wager on such bets, and the potential winning is 1,500 Rand. If that team lose the first couple of match played in that competition, you can then consider laying another bet against the one you initially placed. An in-play market is also a place where hedge betting of great advantage. In this category, it is possible to back and then lay bets one after another as it is often fast-paced.
However you choose to implement hedge betting in the future, it is important to assess the risk and reward at stake. Also, it is best to not use this strategy unnecessarily s you can end up losing more money while being overly cautious. Ultimately, the hedge strategy should be used in extreme situations.

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