A hedge is a second bet on the other side of a bet you already have, so you win something whichever way it goes.
It's common on the last leg of a parlay or on futures close to paying out. You give up some upside for a guaranteed result.
Hedging always costs some expected value, because you pay the vig twice. It's worth it when locking in a result matters more to you than the bigger payout.
How it works
A hedge works because you now hold bets on both sides. Whatever happens, one of them pays. How much you lock in depends on how far the odds have moved since your first bet.
There are two common ways to size it:
| Hedge type | What it does |
|---|---|
| Equal profit | Same profit whichever side wins |
| Stake back | The hedge only returns your original stake if it wins, and you keep most of the upside if your first bet wins |
Hedging only guarantees a profit when the price has moved in your favour. If it hasn't, the best a hedge can do is shrink a loss. Each bet carries the vig, so you pay the margin twice and your expected value goes down.
That trade can still be sensible. If a futures ticket or the last leg of a parlay is worth more than you'd ever stake on one game, locking in part of it is a reasonable choice. The mistake is hedging out of nerves on small bets, which slowly costs money over time. The hedge calculator shows both options before you decide.
Examples
- Example 1
Futures hedge. You bet $50 on a team to win the title at +1000. They reach the final and their opponent is -150. Betting $330 on the opponent locks in $170 profit either way: the futures ticket returns $550, and the hedge returns $550 if the opponent wins.
- Example 2
Parlay last leg. A $20 four-leg parlay will return $250 if the final leg wins. The other side of that leg is +100. Hedging $125 locks in $105 profit either way. Hedging just $20 gets your stake back if the last leg loses, and leaves $210 profit if it wins.
Read more: How parlay odds work
Common questions
Is hedging a bet a good idea?
It depends on how much the guaranteed amount matters to you. Hedging lowers your average return because you pay the sportsbook's margin twice, but it removes the risk of losing a big potential payout.
What's the difference between hedging and cashing out?
Cash out settles your bet early at a price the sportsbook sets. A hedge does a similar job with a separate bet you size yourself, and it's often better value.