The Hedging Calculator: Find Out How Much You Can Earn
“Hedging your bets” is a term that can be heard in everyday life and describes putting yourself in a situation in which you just can’t lose. Whether that is buying tea and coffee when you have guests, or bringing home both Italian and Chinese home from the takeaway. You’ve hedged your bets and will be a winner. In the betting world, an opportunity to hedge your bets creates a no-lose scenario. In this guide, we introduce our excellent hedging calculator and show you real examples of how to put yourself in a no-lose situation. The bookies won’t like you reading this article, but your bankroll will!
Calculator Coming Soon: For a similar one see the Dutching betting calculator.
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The hedging bet calculator works differently to all the other calculators that we have provided for other bet types. Whereas these calculators take odds and multiply it by your stake, the hedging calculator instead compares odd prices at two bookmakers. It automatically tells you the stakes you need to place and what profit you will receive.
What is a Hedging Bet?
On paper, hedging bets sound too good to be true. Whereas every other betting system comes with the danger of losing your money, hedging bets do not contain any element of risk if done correctly. So how does it work?
Hedging works by using the small differences in odds between two or more bookmakers and covering all possibilities to produce a profit. This process is known as arbitrage betting and is a way of using fluctuations in odds offered to your advantage.
If your bet is a yes / no situation, such as “will the home team win?”, we would use two bookmakers. At one we ‘back’ the home win and at the second we bet against the home win, this is called a ‘lay bet’. If we wanted to cover all three possible events in a football match (win/lose/draw), we would use three different ones and place a win bet for the home team at one, a win bet for the away team at another and a draw bet at the third bookmaker.
How to use the Hedging Bet Calculator
Using our hedging betting calculator couldn’t be easier to use. On a simple betting opportunity (a yes/no result, such as both teams to score, Scotland to qualify etc..) you enter the stake you wish to place and then complete the odds from both bookies into the hedging returns calculator. In an instant, the tool will tell you exactly how much stake you need to place at both bookmakers for this bet to work.
As soon as the information is entered, the calculator will show you the potential winnings and losses from the two bets and what the net income will be.
If the sporting event is a 3way scenario (a cricket match is an example of this as it can be a home win, away win or a draw), you would add the odds for the third bookmaker, and the hedging bet calculator will adjust your stake for the three bets. It will also display the per cent profit that your bets will achieve.
- Insert the stake
Enter the total amount of stake you wish to bet
- Choose the selections
Input the odds offered at the different bookmakies
- Calculate the profit
The Hedging profits calculator will automatically work out the variance and return totals.
A Practical Example
Let’s see how the hedge bet returns calculator works with a real example.
When using hedge bets for betting on football, you will usually find that the most significant variance in odds is in either obscure markets or less glamorous fixtures. It is unlikely you would see much difference in the odds offered between the bookmakers for big fixtures such as Champions League games.
The hedge bet we discovered for this example was in Italy’s Coppa Italia and featured Feralpi Salo v Adriese and involves both teams to score market (BTTS).
Bookmaker A was offering BTTS Yes at 2.15.
Bookmaker B was offering BTTS No at 2.10.
This created an arbitrage opportunity, and no matter what the result, entering these figures into the Surebet calculator showed a profit of 6.24%.
Based on a £100 stake between the two bets, if the result of the game is both teams to score is yes, then we win with bookie A and lose with bookmaker B. Alternatively if BTTS is no, we lose at A but win at B.
The Advantages and Disadvantages of this Calculator
We struggle to find any negatives with the hedging bet calculator, but the benefits are numerous.
When placing a hedging bet, the stakes are not placed equally, and one of the critical aspects of this bet is knowing exactly how much to place at the bookmakers. The hedging betting calculator takes all the guesswork out of the process. Using the Coppa Italia fixture we used earlier, I tell the calculator that I wish to place a total stake of £100. Instantly the calculator tells us we need to place £49.41 on the BTTS yes and £50.59 on BTTS no.
With this bet there are only two possible outcomes, BTTS yes or BTTS no.
If BTTS is yes, we win £106.23 at bookmaker A and lose £50.59 at bookmaker B to produce a net income of £6.23. If BTTS is no, we lose £49.41 at bookmaker A and win £106.24 at bookmaker B to show a net profit of £6.24. So the only difference to our returns whether both teams score or not is a solitary penny!
When to use this calculator? | When shouldn’t you use this calculator? |
---|---|
You want to check the variance between bookmakers | If you don’t have time to research thoroughly |
To see how much stake to place with each bookmaker | If you are self-excluded from gambling sites |
To know the profit margin on a Hedging bet | If you have a gambling-related problem |
Best Bonus to Play with on the Calculator
As the basic idea of a Hedging bet is to pit bookmakers against each other, you are going to need plenty of bookmakers accounts for this system to work. The good news is that just about every bookmaker offers incentives for you to join them. These welcome offers are typically in the form of free bets or matched deposit bonuses; both can be used in Hedging betting and effectively means that you are using free cash to guarantee a profit.
A tip we would share is to try and rotate the bookmakers that you use as much as you can. While Hedging betting is difficult to prove for a bookmaker, the sad truth is that the bookies do not need to prove anything and can close your account without warning if they believe you are arbitrage betting. To combat this, careful bookmaker management is highly recommended. Ensure you spread the winning and loses evenly when possible, avoid having one account with all winners.
If you are planning on accepting any bookmaker’s welcome bonus, please always read the terms and conditions before accepting any special deals as there could be wagering requirements in place.
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