Hedging 101 - 4 Deep Sports

Hedging 101

How to Hedge:

Hedging is something that varies by each individual. Bill is someone who loves to hedge every play. Tommy and others hedge on a game-by-game basis. There is no right or wrong answer. Each situation is different and unique to the individual and this guide is the best way to build and teach you a system. 

There are two ways for you to analyze your hedging opportunities, but first, there are things you need to know.

  1. Hedging needs to be YOUR responsibility. We can send notifications when we think it is a good opportunity to hedge but at the end of the day, you need to be responsible for your account and your plays. We do not know your financial situation and are only here to help teach you how to do this consistently on your own. You should be able to develop an understanding of how and when to hedge based off of this article.
  2. You cannot true hedge when you still have two legs left of a parlay.
    1. If there are still two legs left on your parlay but they are + money then you can semi hedge. If both plays are over +200 then you can hedge both plays with an outcome of one win and one loss. If both plays are +200 or more then you are essentially hedging your hedge.
  3. Not every opportunity allows you to hedge.
    1. Sometimes the line on the other side will be too big, not allowing you to hedge and still profit.
  4. We can not tell you how to hedge without knowing these following details. Without any of this information there is no possible way for us to advise you on hedging:
    1. The teams involved
    2. The risk on the play
    3. The payout on the play
    4. The line you are getting on the hedge.


Now, how do I hedge?

When asking how you should hedge, there is no true way for us to tell you how you should hedge your plays. There are, however, basic questions you need to ask yourself before placing a hedge and then you will know how to hedge accordingly.

  • Do I Need To Hedge?
    1. If you are going to be upset that you lost your initial investment when you had a chance to hedge then YES, you need to hedge your play. We as handicappers here don’t always hedge. We take it on a game by game basis so hedging is something you need to develop a personal system for. If you do not want to lose your initial investment on the play then yes, you need to hedge.

If you decide you are going to hedge then you should ask yourself this next question:

  • When should I hedge:
    1. PRE-GAME: 
      1. The ideal way to hedge is pregame. If you are building a parlay, the best option is to make the last leg of your parlay a FAVORED line. By making the last leg of your parlay a FAVORITE, you are given + odds on the hedge right off the bat.
    2. LIVE:
      1. Your hedge doesn’t always have to be on a parlay either. If you are getting extraordinary odds on the other side of a straight bet, you can always lower your payout to hedge your initial investment.

Ok, I decided I am going to hedge, now what?

  • What is the LEAST amount of money I want to walk away with out of this play?
    1. This is the MOST IMPORTANT question to ask yourself and answer. We cannot tell you how much to hedge as we don’t know your financial situation. The way that we hedge is by weighing our total risk to what we can win, and finding the LEAST amount of money we want to walk away with.
      1. Here is an Example:
        1. If I have a parlay that is 1 unit to win 15. The last leg of the parlay needs Team A to win. Team B who they are playing is currently listed at +200.
        2. I have decided I want to win a minimum of 3 units on the play regardless of win or loss.
        3. Information I have: I need team A to win, Team B is +200.
        4. How do I win a MINIMUM of 3 units on this play?
          1. If the hedging play is +200, and I want to win a minimum of 3 units, I need to factor in that I have 1 unit at risk.
          2. Knowing I want to win a minimum of 3 units, and knowing I have 1 unit at risk if my parlay loses, I need to win 4 total units to cover my initial play.
          3. At +200 odds, I would risk 2 units to win 4. That means, if the HEDGE play wins, I win 4 units MINUS my initial 1 unit play for a total of 3 units.
          4. If my original play wins then I win a total of 13 units (original 15 unit payout MINUS the 2 units on the hedge).
          5. If the hedge team is favored and – money (-150 for example) then you want to risk 6 units to win 4 and now you either win 3 units on the play (4 units on the hedge team win MINUS the 1 unit risk) or you win 9 units (15 unit original win MINUS the 6 unit risk on the hedge).

Do not panic if this article is confusing especially if you are new. We are all here in chat to help answer your questions. This is a starting guide to help you understand how we handle our hedging and help you be able to learn to hedge on your own.