What is Hedge Betting and how to use it to your advantage?
Esports betting is one of the fastest growing categories for several traditional betting websites. The industry has seen a traditional attitude towards betting on outcomes of matches. While initial behaviour shows a proclivity towards skin betting, the industry is slowly adjusting towards real money betting.
There are several advantages to using regulated websites. They have to adhere to checks and balances which act as a significant break to the gambling addiction.
From the world of finances to casino games, hedging is a key strategy applied across the board by professional bettors as a means of reducing risk and securing winnings. Here’s how to use hedging in the outright sports betting markets to secure profits.
Predicting the outright winner in a future market is not easy. Even in cases of a clear favourite, betting on the market leader involves tying up a significant amount of your bankroll for the duration of the tournament, at a high risk and for a relatively small reward. Unattractive? I thought so.
Rather than looking directly at identifying the winner of a competition, this article explains how you can make a profit in the outright markets even before the competition is over by using the hedging strategy.
What is Hedge Betting?
Hedge betting is placing your bet on opposing outcomes. The purpose of hedging a bet can be varied and they can have different results. Hedge Betting should be looked as an insurance.
The concept of Hedge Betting is quite simple, to be honest. The idea is to protect your bets against losses. There are various ways within Hedge betting that one can do this. Hedging takes advantage of the movement of the odds. These changes can happen due to new information and can be viewed on betting websites.
Hedge to guarantee profits
The concept of hedge betting involves placing bets on a different outcome, or outcomes, subsequent to an original bet in order to create a situation where there is a guaranteed profit, irrespective of whether the original bet wins or loses.
For those familiar with arbitrage betting, that also involves placing two or more bets on different outcomes for guaranteed profits, there is a key difference between the two strategies. The purpose of arbitrage is to spot discrepancies between the odds offered by different bookmakers and place bets on all possible outcomes accordingly.
Hedging, on the other hand, is based on taking advantage of changes in circumstances and requires only one account, preferably with a bookmaker who welcome winners like Pinnacle. Here’s why we accept winners.
Too good to be true? Read on to find out how to make profit from hedging with examples.
Types of Hedge Betting
edging can be a powerful tool to secure a profit in a particular match. A Hedge bet can be used to ensure that the outcome of the match does not have a say in your profits.
Let’s assume you had placed a bet on Faze Clan to win the Eleague Boston Major. When Faze reached the finals of the Major, you are only one match away from winning the bet. You can ensure that you will win the bet if you hedge a bet on Cloud9 ( their opponents in the Finals) at favourable odds.
Favorable odds basically mean you can place a bet which will ensure you get a profit. There are two outcomes of such a bet. Either Faze will win and you win a small profit ( cause their odds were lower). The other option is Cloud9 wins the Major and you increase your profit margin ( which is basically what happened).
The two outcomes of such a situation were a smaller profit or a larger profit. Both the situations ensure that you will get a profit no matter the outcome of the match.
Hedge to minimize your losses
There are various reasons the odds for a team can change. New information such as a substitute, a personal tweet by anyone related to the team can point to problems within a team. A map veto is sometimes released before the bets close, and that can definitely alter the odds or make it more difficult for the team.
In such cases, hedging your bet definitely comes in handy. Hedging your bet can help you minimize your losses. A case in point: Na’Vi always vetoes Nuke from the series, irrespective of their opponents.
But in a situation where the map ends up being Nuke, you can assume it is their worst map. Their performance on Nuke will be sub-optimal, especially because it is a map with least amount of practice. Betting on Na’Vi would be a huge risk for anyone. But let’s assume you have already placed your bet on Na’Vi before having knowledge about the map.
You would want to hedge your bet by placing another bet on their opponents. It would minimise your losses and help you retain much of your initial bet amount. This does leave you with a loss, but it is a loss that is manageable as to a bigger loss.
Hedge betting is customisable to your needs. You can choose to hedge your bets and guarantee a profit or just go along without any hedge bets. There are always differing opinions on Hedge betting. Some would want you to ride out your bets, while others think that hedging your bets is an excellent strategy.
The bottom line is, hedging your bets is a very personal choice and depends on your preferences. It is a strategy that can be very useful under the right circumstances. The question whether you should hedge your bet or not depends on a lot of factors including the risk-taking ability, the bet amount, the goal of the bet, etc. It is up to you to make these decisions and can just help you understand and be informed.