Hedge
📖 GlossaryDefinition
Hedging means betting the opposite side of a bet you already have, locking in a guaranteed profit or limiting potential loss.
You bet $100 on Lakers to win the championship at +2000 (20-to-1) preseason.
Lakers make the finals. You could win $2,000.
Hedge: Bet $800 on the Celtics to win the finals at -150. If Celtics win: Collect $1,333 from hedge - $100 original = +$433 If Lakers win: Collect $2,000 from original - $800 hedge = +$1,200
Guaranteed profit either way. [/example]
Hedging reduces your upside but eliminates risk. It's most useful when your open bet has large exposure or when you need guaranteed cash.