What is a Hedge Calculator?
When a bettor isn’t confident that the outcome of a wager will result in a victory, they can protect themselves by “hedging” their bet by placing a second wager equal to or greater than the first. Even if a bettor believes they have a chance of winning, they may still choose to hedge their bets to play it safe and ensure they come out on top in the end. Check out a hedging calculator if you’re interested in finding out how much of a profit you can secure using hedging strategies.
When you use the hedging calculator, you may determine how you can ensure that you will make a profit from your live bets. After placing one wager on a market, you can use the online sports betting hedging calculator to determine if you should use a biased or unbiased hedging strategy.
Your goal, of course, is to either lock in a profit or limit your losses. It is possible to bet before the game starts as well as during it. With the help of the hedge calculator, you will be able to determine the precise amount of money you need to wager on your hedge bet to receive the same total amount of profit regardless of the outcome.
Hedging is a tactic you can utilize to either ensure a profit if the odds have shifted in your favor or limit your losses if they have not. This calculator is intended for use in situations where you have already placed a wager on the market.
How Much Should You Hedge?
It’s not hard to hedge your bets against risk. On the other hand, not everyone keeps this idea in their mind when they place a bet. When you evade a chance, you are protecting a profit of some kind that was conceivable from the original wager, and it still may be feasible.
To hedge a bet, a bettor will place a second wager equal to or greater than the first. This second wager is designed to ensure that the bettor will make a profit after the event comes to a close. A bettor can hedge individual games or an entire future wager.
Whenever you place a bet of any kind on your sportsbook account, whether, on a game, a future, or a hedge, you should always ask yourself whether you believe the outcome you’re forecasting has a greater probability of happening than what the odds suggest. It applies whether you’re betting on a game, a future, or a hedge.
For instance, if you want to justify placing a wager with odds of -110, you need to believe that your bet has at least a 52.4% chance of coming out on top. If you’re willing to bet $1000, you must consider it has a 9.1% chance of happening.
If you thought there was at least a 71.4% possibility (implied probability from -250), then the correct decision to make mathematically would depend on whether you thought another team would win the title. The previous example used Kansas as an example. However, “mathematically correct” does not necessarily equate to “appropriate under the circumstances,” which is why the response to this question begins to vary on a case-by-case basis.
For this reason, hedging may be a good idea if the outcome of your original wager is improbable, but you stand to gain a substantial sum of money regardless of the product. However, even in this scenario, the decision to hedge will depend on your willingness to take risks.
On the other hand, if you only bet some spare change on a future for fun and the possibility of losing isn’t going to make a dent in your finances, the more exciting move is to let it ride and see what happens. Even if no response is always correct or incorrect — unless, of course, you are constrained by mathematics – you should think about all of your choices before you hedge.
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How To Use Hedge Calculator
The hedging calculator figures out how much you need to back or lay on a betting exchange to ensure a profit or lessen your loss, regardless of the outcome of your original wager. Trading out of a market does this by leaving you with no net gain or loss relative to any of the market’s available options. The hedge calculator works as follows:
- Choose whether you want to “back” the wager or “laid” it based on how you initially gambled on the market.
- Enter the initial amount you wagered together with the decimal odds you used.
- Enter the odds of your opponent, which are now visible on the selection you made.
- Put in the commission rate required by the betting exchange you use.
- After that, the hedging calculator will tell you how much you need to “back” or “lay” to secure a guaranteed market position, regardless of the outcome.
- You can partially hedge a market by using the slider, which enables you to trade out only a predetermined percentage of the wager you initially placed.
Now that you know the concept of bet-hedging, you can increase your profits. But also, we advise you to consider hedging as an emergency measure. In case you are convinced that your first bet is a loser. In this case, you are guaranteed to reduce the number of possible losses to a minimum.