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Glossary

Hedge

What does "hedge" mean in sports betting?

A hedge is a bet on the other side of an earlier wager to shrink how much you can lose, at the cost of how much you can win.

Hedging comes up most with parlays and futures, when an early bet is close to cashing and you want to protect some of the profit. You bet the opposite side so that more of the possible outcomes leave you ahead.

The hedge bet has vig on it too, so on average hedging lowers your expected value. It's a risk decision, not a profit move. It makes sense when the swing between outcomes is bigger than you're comfortable with.

Example

You bet $20 on a three-leg parlay at +600. The first two legs hit. If the last leg hits, you win $120. You bet $60 on the other side of the last leg at +100. If the last leg hits: +$120 on the parlay, -$60 on the hedge, net +$60. If it misses: -$20 on the parlay, +$60 on the hedge, net +$40. Without the hedge it was +$120 or -$20.

Sources
  1. Action Network: What is hedging in sports betting

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