Punters, tipsters and bettors around the globe often go to extensive lengths to successfully work their way through betting selections without suffering great losses.
If you ask even the most experienced bettors around, every single one of them will tell you that there are no magic formulas with betting and that you need to make sure things go in your favour by analysing the market, doing your research before placing a bet and often finding a perfect betting strategy that will help you secure your investments.
One of such strategies is called Hedging.
It is often said that hedging is a strategy applied by cautious bettors, but we would say that it is a principle which works for wise punters who are willing to take risks but know better than simply go on about unbacked. Increasing variety of different offers such at Cash Back/Money Back are nowadays allowing you to smartly hedge without extra costs involved.
The essence of betting is to minimise risk and maximise profits and Hedging – as more than mere emergency insurance strategy – is the perfect way to do so.
So what is Hedging all about?
Hedge betting and risk reducing generally includes taking what will be a guaranteed loss – but a small one – in order to avoid any possibility of making a larger loss. It can be applied whenever you are no longer confident about your original bet and you want to get the best out of the odds at offer.
In other sense, it is all about making bets of different match outcomes so that you could secure guaranteed profit, regardless of whether your original bet wins or loses.
To best illustrate this insurance method, hedge is best explained through a two transaction method which works with any size stakes and applies to any size odds. Ideally suited for smaller stakes, it is a perfect way to explain hedging system to a beginner.
What you need to do is to place a bet before the odds on the particular market change and then place an opposing bet to stake it out and guarantee your win. This formula is effective both with falling and rising markets, when the odds shorten and lengthen, respectively.
Let’s say we place £20 stake on Liverpool to win the Premier League at 50/1 for a potential payout of £1,000. Hardly anyone gave Reds a fighting chance before the beginning of the season, but seeing that Jurgen Klopp’s men are now within a touching distance behind Chelsea, the odds got slashed to 5/1.
At that moment, you can go out to hedge the liability by laying the bet – in other words becoming a bookmaker to sell your bet and eliminate Liverpool from the combination. For £20 at 5/1 and liability $100, you make sure that if Liverpool fail to win the league you won’t be on the losing end since your original stake is covered with the lay bet.
Of course, if Liverpool go on to win the Premiership, you are in for a £900 payout instead of the originally planned £1,000.