Hedging is a very popular term in the world of financial traders, and it is also a working strategy for sports bettors. In the financial market, you hedge your position to prevent unwanted — or unbearable in most cases — losses when the market is moving against you. It is a form of risk management, and it can help traders make more profitable trades. In the world of sports betting, hedging is used to make sure you earn some profit no matter who win the event.
There are several occasions when you can back both parties and win some money no matter who wins the event. In horse racing, Dutch is quite common — it is actually using the same principles as hedging, placing several bets and guaranteeing profits if one of the horse you bet on wins the race. When you are betting on one-on-one sporting events such as football matches or snooker tournament, the requirements of making profitable hedges are more comprehensive.
Take the upcoming Chelsea vs. Sunderland match for instance. The current odds are 11/50 on Chelsea and 11/1 against Sunderland. If you pay closer attention, you can actually win some money no matter who wins the match. Assuming you wager £50, you can bet £45.39 on Chelsea and £4.61 against Sunderland. No matter who wins the match, you will secure a winning of £5.37 — the total winning for each team is £55.37. The only time you can lose your bet is when the match ends with a draw; you stand better chances of securing a profit with hedging.