How to Hedge a Risk Free Bet

A risk-free bet is a bet where the sportsbook offers a refund usually as free bet if your first bet loses. Hedging a risk-free bet involves placing an additional bet on other outcomes to minimize the risk of losing the initial bet or to lock in a profit. Here's an example of how to hedge a risk-free bet:

  • You are offered a risk-free $100 bet from "Sportsbook A" with the potential refund paid out as a free bet.
  • Because the refund is a free bet and not cash we must first determine and estimated conversion on that free bet.
  • Conservatively speaking, most free bets can be converted at about 75% of the free play amount.
  • On "Sportsbook A" you place a $100 wager on "Bet 1" with odds of -130.
  • On "Sportsbook B" you find the opposite side of "Bet 1" with odds of +130.
  • Using the calculator above, with an estimated free bet conversion of 75% you determine that on "Sportsbook B" you must wager $44.31 on "Bet 2".
  • If "Bet 1" wins you will have profited $32.61.
  • If "Bet 2" wins you will now need to convert the $100 free play refund on "Sportsbook A" at a rate of 75% to profit $32.61.
  • For more information on converting a free play check out our Free Bet Conversion Calculator.

In this example, the initial bet was hedged by placing a second bet on the opposing team. This ensured that no matter what the outcome of the game, you would not lose any money. However, it's important to note that hedging can also limit potential profits and you are essentially trading the potential for a larger win for a smaller guaranteed profit. When hedging a risk-free bet, it's important to carefully consider the potential outcomes and calculate the risks and rewards of each option.