Sports Betting Dictionary
07.07.2023, 13:28
26.05.2024, 03:07
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Demystifying Sports Betting Terms: Hedging

The sports betting landscape is filled with unique vocabulary, and understanding these terms is crucial for active bettors. "Hedging" is a strategy-related term that refers to betting on both sides of a bet to minimise potential losses.

"Hedging" in sports betting is a risk management strategy where a bettor places wagers on different outcomes within the same event to guarantee a certain profit level or limit potential losses. This is often done after an initial bet has been placed and circumstances have changed to make the original bet more risky.

Term Origin

"Hedging" comes from finance and investment, representing similar risk-reducing tactics. The aim in both cases is to protect against potential losses by diversifying the risk across multiple outcomes.

Similar Terms

Hedging intersects with terms such as "Arbitrage" (placing bets on all possible outcomes across different bookmakers to make a profit regardless of the outcome) and "Middle" (betting on both teams in such a way that there's a chance to win both bets).

Examples of Usage of ‘Handle’ in Sports Betting

Example 1

In a sports betting guide, the author might explain, "When your initial bet on an underdog looks uncertain, hedging your bet by placing a second wager on the favourite can help minimise potential losses."

Example 2

A seasoned bettor might advise, "Hedging isn't always the best strategy, as it can cut into your profits. However, it's a useful tool when the risk is too high."

Example 3

The host might share on a sports betting podcast: "During the final game of the playoffs, I decided to hedge my bets to ensure I came out with some level of profit, regardless of who won."

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