Hedging your bets is a way to minimize your potential losses but at the expense of cutting into your potential winnings.
For example, let’s say that you made a future bet on the Chiefs to win the Super Bowl before the season started. Let’s also say that you placed a $10 wager that would earn you $100 if they were to actually win.
Fast forward to the actual Super Bowl. Let’s say they are playing a team and that team is in the lead and looks like they are going to win. A $20 live bet on that other team to win would result in a $10 payout.
If you put that $20 on the other team, you would be coming out on top either way.
If the Chiefs come back to win you would net $80 dollars. This would come from the $100 you were going to earn minus the $20 you put on the other team.
Alternatively, if the other team wins, you would net $0 but you also wouldn’t lose anything. The $10 you win would eliminate the original $10 you put on the Chiefs.
Hedging bets isn’t just reserved for future bets.
You could also lay down some money on pre-game lines and then bet the other way during the game to cover any potential losses. You could also place a contradicting futures bet before the event takes place to also cover your bases.
Knowing how to read betting odds quickly will be crucial if you’re trying to hedge your bets on an in-game wager.