Strategy
Hedge
Betting the opposite side of a wager you already hold to reduce risk or lock in profit.
Hedging usually comes up with futures and parlays: a ticket is one leg from a large payout, and betting the other side guarantees a smaller but certain return.
Mathematically, hedging almost always costs expected value — you are paying vig to buy certainty. That is not automatically wrong. If the outstanding amount is large relative to your bankroll, trading some EV for a guaranteed result is a perfectly rational decision about risk, not a mistake.
Want the full version? Read the in-depth guide, with worked examples and the math.
See also
- Arbitrage — Betting both sides at different books at prices that guarantee a profit whatever happens.
- Middle — Betting both sides at different numbers so that certain results win both bets.
- Expected value — The average result of a bet per unit staked if it could be repeated indefinitely.
- Bankroll — The money set aside specifically for betting, separate from everything else you own.