Of course, the Eagles ended up winning Super Bowl 52. In either scenario, you’d be guaranteed a significant profit. Had the Eagles won, you’d have been guaranteed $3,100. If you had wagered $2,000 on the Patriots, you’d have stood to win $900, no matter what ($1,000 profit minus the $100 you wagered on the Eagles). ![]() Meanwhile, the Patriots were -200 on the moneyline the night before Super Bowl 52. If you wagered $100 on them on February 5 th, 2017, (either out of sheer sports genius or team loyalty), you were looking at a potential profit of $5,100 on the eve of Super Bowl 52. The Eagles opened at +5100 the day after Super Bowl 51 (2017). Hedging with Championship Futuresįutures wagers are a great way to lock in profits with hedging. If you’re a bit more conservative in your approach and are looking to protect your bankroll, hedging is the smarter play. If you’re a risk taker, and entirely confident in a Blue Jackets victory, you might not want to hedge at all. It wouldn’t secure you a profit, but you wouldn’t cut into your potential profits to a significant degree either.Īs a bettor, it’s up to you to decide what you’re comfortable with in this scenario. If the Jackets managed to win the series, you’d win $400 (minus the $100 you bet on the Penguins). Of course, you could just wager $100 on the Penguins, and by doing so, secure yourself from any potential losses while maximizing your return if the Columbus Blue Jackets won. You’d still be guaranteed a profit of $100! If the Penguins won, you’d win $200 (losing the $100 you wagered on the Columbus Blue Jackets). If the Blue Jackets won, you’d win $400 on top of your stake (minus the $200 you wagered on the Penguins). At this point, you could place a $200 bet on the Penguins to win the series, and you’d be guaranteed a profit no matter what. As a result, Pittsburgh’s series odds became a lot longer than they initially opened, moving to -100. Say the Blue Jackets went up 2-0, and were heading home to play games 3 and 4. You liked the Blue Jackets’ chances, so you bet on them as the heavy underdog at +400. If you hedge your bets carefully, betting on a playoff series is an easy way to guarantee a profit.įor example, let’s say you’re betting on hockey and the Pittsburgh Penguins are playing the Columbus Blue Jackets in the first round of the NHL playoffs. Profiting on Playoff Futures with Hedging ![]() We’ll take you through some specific examples below. There are a lot of different scenarios where you can secure a profit by exercising the appropriate hedge. What Does Hedging Mean for Sports Betting? These opposing bets act as your insurance policy, or your hedge. You can place additional bets on opposing outcomes to reduce this exposure. Let’s say you place a massive bet with long odds and later realize you have exposed yourself to an unacceptable level of financial risk similar to, say, getting in a car accident. So, how does this relate to sports betting? In essence, you’re making a recurring small bet with your insurance, and it protects you from the low probability (but high cost) event of getting in an accident. Most people would rather swallow the predictable cost of insurance to protect themselves from the massive financial loss of getting in a car accident. So, would most people still buy insurance if the government didn’t make them do so? Probably. Here’s the thing: insurance is expensive, and it’s entirely possible that you could drive your entire life and never need to use it. Mandatory in every US state (except New Hampshire), car insurance is a hedge which protects car owners against the financial burdens of getting in a car crash. In essence, a hedge is any action taken to reduce the risk of a damaging outcome occurring in the future.Ĭar insurance is a great example. ![]() Let’s take a moment to understand the concept behind a hedge. To mitigate your losses and reduce bankroll exposure after placing a riskier bet.When doing so allows you guaranteed profit betting on a sporting event.In the end, the goal is always to limit potential losses. Depending on the scenario, this approach can secure profit regardless of which outcome occurs or reduce exposure on your initial bet. Hedging involves placing a new bet on a different outcome than the one you originally wagered on. While hedging bet can seem like a challenging strategy to master, the concept is simple. Fundamentally, hedging is a risk management strategy to help you minimize losses and maintain a healthy bankroll. Hedging is a method used to either reduce your risk or guarantee a profit when betting on sports.
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