Guaranteed Profits Through Hedge Betting
Whether it’s the calculative world of finance or the sheen of casino games, gamblers have always actively used hedging as one of their key strategies, and also as an effective means for reducing their risk levels and securing ample winnings for themselves. Let’s go over how you can use hedging effectively in some of the most sought after sports betting markets and register guaranteed profits for yourself.
It isn’t an easy job to correctly predict outright winners in future markets. Even when you are very sure about a clear favourite, the act of placing bets on a market leader requires tying up a considerable amount or percentage of your bankroll, throughout the tournament, at a higher risk and for a reward that may not be very high. Sounds unattractive to you? We thought so!
Instead of directly seeking or trying to identify a potential winner of the competition, we’ll tell you how you can register handsome profits in all major outright markets, much before the competition gets over, by effectively using a hedging strategy.
Hedging your way to guaranteed profits!
If we delve deeper into the hedge betting concept, we’ll learn that it is mainly about bet placements on an entirely different outcome, or several outcomes, after you have placed your original bet, so as to create a circumstance wherein your profit is guaranteed, no matter whether your original bet turns out to be a winner or not.
People who are already familiar with the concept of arbitrage betting, which also involves placement of two or more different bets, on various outcomes, for making guaranteed profits, the key difference that sets these two strategies apart is - while arbitrage betting’s sole purpose is to find out discrepancies between odds offered by two or more bookmakers, and then placing wagers on all profitable outcomes accordingly, hedge betting is mostly focused on benefiting from changes in the circumstances, and requires opening of only one account, normally with a bookmaker that doesn’t restrict or bans winners, for instance Bet365.
Hedging or Hedge betting in practice
Placing a hedge bet on the potential winner of a certain tennis tournament is easily one of the most common ways you will see hedge betting strategy being applied in the field of sports betting. However, before you start using this strategy, you must understand all the things required for making this strategy successful. Let’s explain it better using an example of Wimbledon 2015.
Garbine Muguruza, a Spanish tennis player who had never reached even the 3rd round during her two previous appearances at the All England Club, sprung up a major surprise when she caused an upset in her match with Radwanska, securing a place in her first ever appearance in a Grand Slam final, and that too against a world-class player like Serena Williams.
The 21-year-old experienced a sort of a meteoric rise in the tennis world in that tournament, something which no one had ever expected. In fact, Muguruza had comfortably gotten the better of Serena Williams in the 2nd round at the French Open previous year, and was in top physical shape going into the Wimbledon final. However, the markets didn’t believe her to be a star in the making, with bookmakers like Pinnacle Sport, setting an opening line for Muguruza win at a whopping 41.00.
So, for the sake of example, if you had placed a wager of £ 10 on Gabrine Muguruza win, at those opening odds of 41.00, and she would have indeed gone on to win the Wimbledon title, you would have bagged £ 410 in return! With the constant progression of the Spaniard, from one round to the other, and then eventually reaching the final against the world number one Serena Williams, the opening odds for Serena Williams to win the Wimbledon final, and hence the championship, were set at 1.85, giving punters just the right opportunity to lock their profits, regardless of the final result of the match.
The sports bettors were able to ensure a balanced return for themselves, regardless of which player won. They could do so by dividing the initial bet’s return by the price set for the opposite outcome. That is:
410 / 1.85 = 221.62
Following is how the profit calculations worked:
Final outcome / Total amount bet / Odds / Return / Profit
Williams win / £ 10 + £ 221.62 = £ 231.62 / 1.85 / £ 221.62 x 1.85 = £ 409.99 / £ 178.37
Muguruza win / £ 10 + £ 221.62 = £ 231.62 / 41.00 / £ 10 x 41 = £ 410.00 / £ 178.38
The example provided above clearly illustrates how everyone who managed to correctly assess the performances of the concerned players, got just the right opportunity of securing a guaranteed profit for themselves in the outright market of that Wimbledon final, enabling them to score profits of over £ 178, by risking only £ 10. They could also enjoy the luxury of enjoying the Wimbledon final, safely in the knowledge that they were already winners regardless of the final result.
Adjusting hedge bets to your advantage
Things can be made even more interesting as hedging enables you to appropriately distribute the risk, thus your winnings, based on what you expect the final outcome to be. Let’s say, for instance, you were pretty sure that Serena Williams would breeze through the final, and wanted to book a higher profit for yourself, if that actually happened. In order to do that, you would have been required to increase your bet amount on Serena Williams. Following is a useful way of making such profit distribution in favour of Williams win, by betting £ 300 on Serena Williams win, at odds of 1.85, before the final match.
Outcome / Total bet amount / Return / Profit
Williams win / £ 10 + £ 300 = £ 310 / £ 555 / £ 245
Muguruza win / £ 10 + £ 300 = £ 310 / £ 410 / £ 100
In the situation detailed above, you would have registered a net profit of £ 245 for yourself, without the need of increasing the £ 10 risk. If you had opted to wager the same amount on the opening line set for Serena Williams to win the Wimbledon tournament, which was 3.50, that bet would have resulted in a tiny profit of only £ 25 for yourself, not to forget more amount of headache until she would have had actually secured the championship.