Hedge
Placing a bet on the opposite side of one you already have to reduce risk or lock in profit.
A hedge is a bet that offsets an earlier bet. Most commonly used:
- Live in-game: You bet Packers -3 pre-game. They lead 17-3 at halftime. The live line moves to Packers -10. You bet Bears live to lock in a guaranteed profit regardless of how the second half plays.
- Futures: You bet the Bucks at +1500 to win the championship in October. They reach the Finals. You bet against them in Game 7 to guarantee a profit.
Hedging gives up upside in exchange for variance reduction. It’s the right move when the locked-in profit covers the original risk and then some.