One of the most interesting aspects of sports betting markets is how they work in relation to other areas including the world of finance as well as casino betting action. There are many similarities between the different worlds and we can take some of the same principals that apply in finance and casino betting and use them in terms of sports betting as well. The idea of hedging in order to secure a profit in sports betting markets makes a lot of sense and we can use some of the same principals that are applied in the real world. Here is a look at how to hedge in outright betting markets.
Hedge To Guarantee Profits
Hedge betting involves placing bets on a different outcome or outcomes in order to create a situation where you will guarantee yourself a profit. This is something that professional investors do all of the time in order to make sure they balance their risk versus reward. The point of hedging a bet is to guarantee that you make a profit regardless of whether or not the original bet you placed wins or loses. There is a lot that can change in regards to the circumstances of a wager from the time it is made to the time the outcome of the wager is determined and hedging is an excellent way to guarantee profits.
How To Hedge A Bet
An NFL game can be the perfect example for how to hedge a bet. Let’s pretend that the Pittsburgh Steelers are hosting the Baltimore Ravens in what is projected to be a close AFC North showdown between those division rivals. The line for the game is set at Pittsburgh -1.5 with a +120 mark for those willing to take the Steelers at that price. Once you lock in the $100 wager of Pittsburgh +1.5 at +120 odds, the number shifts to Baltimore +1.5 +120 odds due to an injury that takes place in warmups. The news breaks and the line moves and now you have a chance to take the Ravens at +1.5 for $100 at +120 odds . If you bet on Baltimore, then you now have two wagers for the game risking $100 to win $120 with the Steelers at +1.5 and the Ravens at +1.5, which means there is no way that you could lose. By hedging your bet, you have guaranteed you will make a profit of $20 regardless of the outcome of the game and a profit of $40 if the game is decided by exactly one point.
Hedging a bet won’t be as easy as we outlined in the situation above but there are different ways to find values based on the market that you are playing in. The same principles can be applied in different sports and when it comes to betting on playoff series’ where the odds for the outcome of the series can shift on a game-to-game basis. The same tools used in the world of finance can be applied to sports betting markets in order to gain significant edges. Hedging is a popular took among the professional handicappers and that is usually a good indicators that the casual fans should be using it to their advantage as well.