Hedge betting involved betting on multiple outcomes of just one event in order to limit your losses or even guarantee a profit, irrespective of the result. This usually entails taking advantage of changes in odds for bets which have already been placed.
Our hedge betting calculator will help you calculate how to place lay bets for betting exchanges, a tool which can really come in handy if you wish to bet against an event. Keep in mind that lay odds work differently than regular odds. If you want to calculate for regular odds instead of lay odds, use our arbitrage betting calculator instead.
How To Use The Punters Page Hedging Calculator
- Insert the odds you will back/lay
- Insert the total stake you want to back/lay
- Insert the commission % you will paying.
Your net profit/loss for both your back/lay bets will then be calculated automatically.
Should you wish to use the Hedging Calculator for a new calculation, simply tap the RESET button in green.
If you want to calculate your optimal stake for hedging manually, use this formula:
X = (P + W1) / O
- P = Profit from your first wager
- W1 = The stake from your first wager
- O = Decimal odds from your second wager (use our odds calculator to convert odds)
If you want to calculate your total winnings, subtract X (your hedge wager amount) from P (your profit from your first wager).
- P – X = Your guaranteed profit
Let us imagine you had placed £100 bet on tennis futures, at odds of 7/1 (8.0), (for example, on a player to win Wimbledon). Your selection makes it to the final, while the opposing player gets odds of 4/5 (1.8) to win. Using the hedging formula, you can calculate:
- P = £700 (Payout 800 minus stake 100)
- W1 = £100
- O= 1.80
- X = (£700 + £100) / (1.80)
- X = £444.44
- £700 – £444.44 = £255.56
This means that if you also bet £444.44 on the other player, you will win £255.56 regardless of which player wins. That is why hedging can be so profitable.