What is hedge betting?
Hedge betting means placing a second bet on an opposing outcome to your original wager, reducing or eliminating your risk. Depending on how the situation has evolved since your original bet, hedging can either lock in a guaranteed profit regardless of the result, or limit your potential loss if you believe your original selection is now less likely to win.
Hedging is most commonly used when an original bet has become more likely to win — for example, your team is leading a tournament and their odds have shortened significantly. By backing the opposition (or laying your selection on an exchange), you guarantee a profit whether or not your original bet wins.
The concept applies across all sports: an accumulator where four of five legs have won, a futures bet on a team to win a championship after they've qualified for the final, or a live bet where the match situation has shifted dramatically.
How to calculate the optimal hedge stake
The optimal hedge stake is calculated to equalise your payout on both outcomes — locking in the same profit regardless of the result. Formula: Hedge Stake = (Original Stake × Original Odds) / Hedge Odds.
Example: You backed Team A to win a tournament at 10.00 for £20, placing £200 in potential winnings. Team A has reached the final and now trades at 2.00 to win. Hedge stake = (£20 × 10.00) / 2.00 = £100 on the opponent (or lay Team A at 2.00 for the equivalent liability). If Team A wins: £200 from original bet minus £100 hedge stake = £100 profit. If Team A loses: £0 from original bet but hedge bet wins. If hedging at opponent's odds of 2.00: £100 × 2.00 = £200 return, minus £100 stake = £100 profit. Guaranteed profit: £100 on a £20 original stake.
Use our hedge calculator to input any scenario and instantly calculate the exact hedge stake for your desired outcome.
When should you hedge a bet?
**When you want to guarantee profit:** If your original bet has increased significantly in value (odds shortened, making a win more likely), hedging locks in real money regardless of the result. This is especially useful for long-shot futures bets that have come in — you don't want to risk losing the entire potential payout on the final outcome.
**When you need the money:** Sometimes a guaranteed smaller payout is more valuable than a larger uncertain one. If your accumulator has reached the final leg but you need certainty, a partial hedge (not equalising both outcomes but reducing exposure) can give you a floor.
**When circumstances have changed:** Injuries, team news, or weather changes after you've placed an original bet might shift the probabilities significantly. Hedging allows you to adjust your position without cancelling the original bet.
**When NOT to hedge:** If you believe your original selection still represents positive expected value, hedging reduces your overall edge. Systematic hedging of all profitable bets is a form of leaving money on the table. The decision should be based on whether the original bet still has positive value — not on fear of losing.
Hedging vs early cashout — what's the difference?
Bookmakers offer cashout functionality which allows you to settle a bet early for a reduced payout before the event finishes. This is effectively the bookmaker offering you a hedge at their own prices. The convenience is real, but the price is always tilted in the bookmaker's favour — you will invariably receive less from cashout than from hedging optimally yourself on an exchange or second bookmaker.
For small bets, cashout convenience may outweigh the price disadvantage. For larger stakes, calculating the optimal hedge manually or using an exchange will almost always yield better value. Compare the cashout offer with the manually calculated hedge using our hedge calculator to see how much value the bookmaker is taking in the cashout price.
Some bookmakers without restrictions offer more transparent cashout prices than heavily regulated operators — particularly in markets where pricing competition is stronger. Always weigh your options before accepting a cashout.