Sports
The idea of hedging your bets is simple.
Juice, or vig, is the house edge that a sportsbook generates by assigning slightly shorter odds.
The perfect example is a coin flip.
Instead, they may offer odds of -110 (1.9).
So how does this affect hedge betting?
Underdog bets are great for hedge betting, especially when the bookmaker underestimates their chances.
This will give you generous odds, and a good place to start.
Your bet of $10 will win $27, which is a profit of $17.
That profit line, of $17, can be used to purchase hedge bets against the Pistons.
Just subtract some of your potential winnings, and you have guaranteed a profit however the game turns out.
A bet of $4.50 will do, as it will bring $10.35.
If the Knicks win, you take home $0.35 (after subtracting the initial bet of $10.
Should the Pistons win, you take home $13.50 (after subtracting the $4.50 hedge bet).
This way, you are not really banking on either result, as they bring almost the same rewards.
What this does is bring you $39.10 in pure profit.
You are looking for inflated odds that have a chance of changing dramatically.
Futures
Bets on the winner of a competition or a league can change drastically throughout the season.
It is all about choosing the right time when the odds work in your favour.
You should bear in mind though, that most futures bets have many possible outcomes.
For this reason, it is much more difficult to make your predictions.
The good thing about futures bets is that it lasts all throughout the season.
Live Betting
This is perhaps the most popular choice amongst hedge bettors.
The danger with live betting is that the odds can change dramatically, and quite quickly too.
you gotta be on the ball all the time and ready to snap up great prices.
Parlays
Hedge bets are also widely used in parlays.
The odds right before the game starts are called the closing line.
Predicting which way the odds will shift if they do at all, is no easy feat.
Arbitrage betting is when you make a profit on the discrepancies in odds between bookmakers.
It does not even matter which bet wins, as it should bring you a tiny profit.
Apart from getting on the wrong side of the bookmaker, there are no dangers to arbitrage betting.
It is not a big moneymaker strategy, as this bet only brings in minuscule rewards.
Betting Exchange
Betting exchanges offer bettors all the tools they need to place hedge bets.
They are peer-to-peer betting markets, in which there is no sportsbook and no juice.
Instead, you propose a bet by offering odds and setting a stake.
Lay betting is the bet that the sportsbook would do.
The wager opposes the original bet and uses inverse odds.
The odds on the lay bet are 1.91 (-110).
The only thing you oughta keep in mind is that you need a peer to bet against you.
If there is no opposing bet, then you have no bet.
Is Hedging Legal?
Technically speaking, there is nothing illegal about hedge betting.
However, some bookmakers take up a stricter stance against hedge betting.
Arbitrage betting, or suspected arbitrage betting, is the most common reason why a sportsbook may suspend you.
Conclusion
The greatest win is to never lose money.
You cannot assume that you will always get the opportunity to make a hedge bet.
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