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When Should You Hedge Your Bets?

Published: Mon Sep 02, 2024, 11:32 am ET

Read Time: 5 minutes

When a sports bettor gets cold feet about a bet they have made or is poised to receive a massive payout on a parlay, a decision may need to be made about what to do about these nerves. Making that decision is known as hedging your bets. But what does it mean to hedge your bets?

Here, we explain what it means to hedge your bets and break down some scenarios in which someone may look to hedge their bets.

Hedging Your Bets – What Is It, And When Should You Do It?

There are several reasons that someone might hedge a bet. They all revolve around protecting an asset.

Let's look at a couple of the more common forms of hedging.

How to Hedge to Maximize Value

First, a bettor could be hedging to maximize the value of a future bet.

For example, if you have placed a bet on a team to win the Super Bowl. In this example, we will use the Dallas Cowboys. Entering the 2024 NFL season, the Cowboys have +1800 odds (at BetOnline) to win Super Bowl 59.

Well, if the Cowboys make the big game, you might want to place a bet on the opposition to a number that will still guarantee you a payday regardless of who wins.

To take this example further, let's say you placed a $100 wager on the Cowboys to win Super Bowl 59. That means that if Dallas wins, you will win $1800.

To ensure you come away with a payday, you can place a bet on the other team. In this example, we will use the Houston Texans as their opposition.

If you place a moneyline bet on the Texans to win the game, that will ensure you don't come up empty-handed even if the Cowboys don't win. If the Texans are an underdog, you can still turn a significant profit even if the Cowboys come up short.

Hedging Your Bets in a Playoff Series

Second, someone may hedge a bet that they have made on a playoff series.

For example, if the Indiana Pacers are a huge underdog against the Boston Celtics in an NBA playoff series, you could take them to win the series at a good set of odds.

If the Pacers win the first couple of games in Boston, then you could conceivably bet on the Celtics to now win the series as those odds will have dropped.

In this scenario, if the odds and bet sizes are right, you could end up turning a profit no matter who wins the series.

This happened in the 2018 NHL playoffs when the Columbus Blue Jackets went up 2-0 in a series in which they were the heavy underdog to the eventual Stanley Cup champion Washington Capitals.

Hedging with a Parlay

Another scenario where someone might hedge a bet is when they are just about to win a parlay bet.

If you have a five or six-team team and have hit all but one game, you may be on the cusp of a big win.

One option to ensure a payout is to bet against the team you have in the final parlay spot with a straight bet.

This way, if you win the parlay, it's a big win, or if you lose the parlay at least, you win on the straight bet.

How to Hedge out of a 'Bad Bet'

Finally, you may just want to get out of a terrible bet by betting on the other side.

This can happen two different ways. One way, you can make a bet before the game starts on the other side. Sometimes in instances like this, the odds have moved, so you aren't losing the juice on both bets and have a chance to break even.

Another option is to place a live bet. Live betting, which is also known as in-play betting, is increasing in popularity. One of the main reasons why is the fact that you can find a way to make money even if you are on the wrong side of the bet to start the game.

Cashing Out to Hedge Your Bets

However, there are moments where you might want to consider taking a lower payout by hedging your bets.

Some sports betting sites offer players a chance to be bought out of bets before they are completed. This is called cashing out.

If you use the cash out option, you will of course receive a far lower amount than if you stick it out to the conclusion. But if it is a longshot bet, it may be worth it to take the cash.

Ultimately, when it comes to whether to hedge your bets, the best advice is to stick to your guns when you make a wager.

Sometimes that means letting it ride. But in the case of trying to be the most profitable you can in the long term, looking for the right moments to hedge your bets can often be an excellent strategy and is always worth considering.

Other Sports Betting Information

Did you find this guide to hedging your bets helpful? Along with the daily sports betting news and views we offer, we also provide many guides that break down the basics of sports betting. That includes how to bet on specific sports, leagues, and events, types of bets (such as prop bets or futures bets), betting strategies and terms, and more.

Here are some of the other betting guides you can find at Betting News:

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