What Is Hedging a Bet? Secure a Profit or Cut a Loss

Hedging a bet means placing a second wager on the opposite outcome of a bet you already have, so you come out with a profit or a smaller loss whichever way it goes, at the prices you got. It is most common on futures and large parlays when a big payout is one leg away.

How do you size a hedge bet?

Definition. A hedge is a second bet on the opposite outcome that evens out the result of the first.

Worked example. You hold $100 at +500 (profit $500 if it wins). The other side now pays +150. A hedge stake H makes both results equal: $500 minus H = 1.5H minus $100, so H = $240. Either way the profit is $260.

Write the profit if your original bet wins (here $500) and its stake ($100).

Set it equal to the hedge's profit minus the original stake: 500 minus H = 1.5H minus 100.

Solve: H = 600 / 2.5 = $240; profit is $260 on either result.

How hedging works

You already hold a bet that stands to win big. Rather than risk it all on one outcome, you bet the other side for an amount that either secures a profit whichever side wins (at the prices you got) or caps your downside. The hedge sacrifices some of the maximum payout in exchange for certainty, so the size of the hedge is a personal risk decision.

FREE · NO CARD · EVERY DAY

Get the daily free-play email · by 5 PM ET on weekdays and by noon ET on weekends

Documented free VIP plays whenever they're on the board, from a team with 6 straight winning years. Every result graded in public, win or lose.

Unsubscribe anytime in one tap. No spam, just the play and the receipts.

A worked example

You have a futures ticket that pays $1,000 if a team wins the title, and they reach the final. You can bet the opponent so that either result returns you a similar amount, turning a maybe-$1,000 into a few hundred either way. A hedge calculator finds the exact stake that equalizes the two outcomes.

When to hedge

Hedging makes sense when the smaller amount you keep either way matters more to you than the upside, or when the price on the other side has moved enough to make the hedge itself a good bet. It is not automatically correct: if your original bet still has positive expected value, letting it ride can be the better long-term play.

Frequently asked questions

Is hedging a bet a good idea?

It is when securing a profit or limiting a loss matters more than maximum upside. If your original bet still holds value, riding it out can be better long term.

How do you calculate a hedge?

Divide your potential return by the decimal odds of the other side to find the stake that equalizes both outcomes. A hedge calculator does it instantly.

Your next step

1Learn itHedging (this page)
2Apply itHow to find value bets →
3Run itHedge Calculator →
4Master itDay 20: Sharp action, handle and line movement →

Related terms

Arbitrage: Arbitrage betting, or arbing, means placing bets on every possible outcome of an event across different sportsbooks whose prices disagree, so that the payout beats your total stake whichever side wins, as long as every bet is accepted at those prices.
Futures: A futures bet is a wager on a long-term outcome decided in the future, such as which team wins the championship or a player's season award.
Expected Value (+EV): Expected value, or EV, is the average amount a bet would win or lose if you placed it many times over.
Live Betting: Live betting, also called in-game or in-play betting, means placing bets after a game has started.
Middle: A middle is a pair of bets on opposite sides of two different lines, such as Over 44.5 at one book and Under 47.5 at another.

Hedge Calculator →Full glossary →

21+. For entertainment and educational purposes, not financial advice. If gambling stops being fun, take a break. 1-800-GAMBLER. Regulated US books only.

How to use the hedge calculator

Enter your original stake and odds.

Enter the odds available on the other side now.

Read the hedge stake that makes both outcomes pay the same.

Compare that fixed result with letting the original bet ride. Hedging gives up expected value to cut variance, so do it on purpose.

Worked example: a +400 future with a -150 hedge

You hold a $100.00 future at +400; it returns $500.00 if it wins. The other side is now -150 (1.6667 decimal).

Bet $300.00 on the hedge so both outcomes return $500.00. Total staked is $400.00, so each outcome nets $100.00. Skip the hedge and you either win $400.00 or lose $100.00. Which is better depends on your bankroll and on whether your original price was good.

The numbers above are an illustration of the math, not a prediction or a result.

Common questions

What does it mean to hedge a bet?

Betting the other side of a bet you already hold, to cut the risk or secure part of a profit.

Should I always hedge a futures bet?

No. Hedging gives back some expected value. It makes sense when the payout is a big share of your bankroll or the price on the other side is better than fair.

What is the difference between hedging and arbitrage?

A hedge responds to a bet you already have. An arbitrage is built from the start across two books.