You may have heard the term “hedging” thrown around the sports betting world, but have you ever stopped yourself and asked what that was or what it means? Many people have heard of a hedge fund or hedging in financial markets. The basic idea is for the fund to make money regardless of what happens in the market. It’s the same idea as hedging in sports betting. The idea would be to lock in profit so that you make money regardless of whether or not your original bet wins.
Hedging your bet can happen during a live game or on a Futures market. Let’s say you bet on the Ravens to cover the spread last night against the 49ers. The Ravems were winning for most of the game, so they quickly went from underdogs to favorites as the game went along. If you were concerned that the Ravens could blow it late, or that the 49ers could’ve made a big comeback, you could’ve bet on the 49es to win during the game. This way, you would have been covered in the event the 49ers came back to cover the spread. You could’ve even won both bets had the 49ers won and the Ravens covered the spread. But the idea is that once you made the bet on the 49ers, you’re guaranteed profit. You can also do this in Futures markets. Let’s say when the 2023 MLB Playoffs started, you bet on the Texas Rangers to win the World Series. When they made it to the World Series, they were favored to win the series against the Arizona Diamondbacks. You could’ve taken a percentage of your bet on the Rangers and made a bet on the Diamondbacks to win the World Series. Once again, you’re guaranteed to profit in this scenario. Of course, it’s a smaller profit than if you just let your Rangers bet ride, but you completely eliminate the downside if the Diamondbacks would’ve completed their Cinderella run.
As you can see, hedging your bets has upside and downside. If you’re more risk-averse, you may want to start trying to hedge your bets sometimes. As is usually the case, the best way to learn a new way to bet is by trying it! When done safely and responsibly, hedging your bets can be a useful addition to your sports betting portfolio!