Sports betting is almost as volatile, if not more, than sports itself. But what about hedging bets and how can you add it to your betting strategy?

Thankfully, ZenSports has the easiest-to-understand sports betting app in Tennessee, which is perfect for beginners that want to learn more. In this guide you will see how hedging bets is not only legal, but how it can be useful if you do not mind the risk.

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What is Hedging a bet?

Hedging a bet can be considered “insurance” against your original wager. You are essentially betting on a different outcome or scenario that is opposite of what you had originally bet on in order to limit your losses or ensure a profit.

For example, you might hedge a bet for futures made at the beginning of a season. Your futures bet involved a particular team that made the championship game, but you could hedge or bet against them individually to ensure you win something rather than nothing at all.

How to Hedge a Bet

Hedging a bet is not difficult, but you need to be aware of the outcomes and when to properly do it. Below are examples of hedging a sports bet.

Straight Bets

In a typical head-to-head matchup, you will pick one team that will potentially win against another. But what if you bet on both teams to win and why would anyone do that?

Say you bet on Team A to win an NBA game, but they are down 25 points with little time left in the final quarter. You could place another wager on Team B to win, even though it will not be that much since odds shift. This way, you will still win something and cut down on your losses.

Futures Bets

Futures are common for hedge bets. Say you placed a futures wager on Team A at the beginning of the season to win an NFL Championship and they actually made it.

Team A: $3000 potential if they win

Now, since the payday would be good on that pick alone, you could place a wager on Team B as a safety net.

Team B: $500 if they win (depending on how much you bet)

Simply place a second wager on Team B to win and now you have a guaranteed profit no matter what. So if Team A wins, then your futures bet pays out. If they lose and Team B wins, you still get something out of it and to cover the original bet on Team A.

Keep in mind this only works if one bet already has a good payout in place, as the other is to help mitigate a loss. If no hedge is made and Team A loses, then you lose your original wager and the high $3000 payout.

Parlay Bets

Parlays need every piece of the puzzle in order to pay out. So if you have five wagers in a parlay, all five must be correct. For hedging a parlay, you would need to place a bet that is opposite of the final game for a payout.

So if four games or scenarios were successful, you need to wager against whatever you chose in the parlay for the fifth one in order to help mitigate potential losses with a slight gain. This locks in the small profit you will make, but also gives you some cushion for losses if the parlay falls through.

Bet Hedging vs. Arbitrage Betting

Hedging bets is sometimes considered taboo in the sports betting world. Many people often mistake it for another form of betting, known as arbitrage betting. 

A difference in odds between bookies or one failing to update their odds in a long time will likely have these results happen to them. There are key differences between the two and you should make sure that you never make the mistake of arbitrage betting.

Hedge Betting

Hedge bets are solely used to help mitigate the losses and to lock in profits. These are safety nets and are a useful tool to lock in smaller profits. It is perfectly legal and an effective method that many bettors use.

Arbitrage Betting

People that make arbitrage bets are trying to guarantee a profit by betting on all outcomes of a match. So in football, you can win, lose, or draw and an “arber” will bet on multiple options.

However, this person will likely need another sportsbook account from another company to do this because they are looking for big discrepancies in odds. There are many ways that sportsbooks find out if you are doing arbitrage betting. This is heavily frowned upon and sportsbooks will either cancel the bet or ban you from the platform permanently.

Final Thoughts

ZenSports is a great place to find the best odds in Tennessee. While hedging is not illegal, you need to make sure it fits within your gambling goals while betting on sports. Simply hedging for no reason means you pay more to the bookie and you are cutting your potential earnings.

As always, it is best to read the terms and conditions to make sure you do not break any rules, as these could change at any time. Hedging is a useful method if used correctly and appropriately.

Photo Credit: EvgeniyShkolenko, iStock