# How much should I hedge?

Computes the stake on the opposite side of a bet that gives the same profit whichever side wins, or that breaks even if the original bet loses, and the result of each outcome.

- Page: https://www.acalculator.org/game/hedge-calculator
- JSON spec: https://www.acalculator.org/game/hedge-calculator.json
- Version: 8693426dfa20

## Default answer

Example with the default inputs (Odds format American, Original odds +400, Original stake $100.00, Hedge odds -150, Hedge to Same result either way): Hedge $300.00 at -150: your net result is $100.00 if the original bet wins and $100.00 if the hedge wins (a minus sign is a loss).

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| format | Odds format | The format of both odds: American, decimal, or fractional. |
| odds | Original odds | The odds of the bet you already placed. |
| stake | Original stake | The amount of the bet you already placed. |
| hedgeOdds | Hedge odds | The odds now offered on the opposite outcome. |
| mode | Hedge to | Equal profit either way, break even if the original bet loses, or a hedge stake you choose yourself. |
| hedgeStake | Hedge stake | The hedge stake you choose. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| hedge | Hedge stake | The amount to bet on the opposite outcome at the hedge odds. |
| ifOriginal | Profit if the original bet wins | Original stake × (original decimal odds − 1) − hedge stake. |
| ifHedge | Profit if the hedge wins | Hedge stake × (hedge decimal odds − 1) − original stake. |
| totalStake | Total staked | Original stake + hedge stake. |
| unhedged | Profit without a hedge | What the original bet alone wins: original stake × (original decimal odds − 1). |

## Method

With original stake S₁ at decimal odds d₁ and hedge odds d₂: equal result H = S₁ × d₁ ÷ d₂; break even H = S₁ ÷ (d₂ − 1). Profit if the original wins = S₁(d₁ − 1) − H; if the hedge wins = H(d₂ − 1) − S₁.

## Assumptions

- The two bets cover opposite outcomes, and exactly one of them wins (no draw or push).
- The original bet is already placed at the original odds; the hedge is placed now at the hedge odds.
- Results are mathematics, not betting advice.

## Worked examples

1. format = american, odds = +400, stake = $100.00, hedgeOdds = -150, mode = equal gives hedge = $300.00, ifOriginal = $100.00, ifHedge = $100.00, totalStake = $400.00, unhedged = $400.00. Source: hand calculation in content.mdx: 100 × 5 ÷ (5/3) = 300; 400 − 300 = 100; 300 × 2/3 − 100 = 100.
2. format = american, odds = +400, stake = $100.00, hedgeOdds = -150, mode = breakeven gives hedge = $150.00, ifOriginal = $250.00, ifHedge = $0.00. Source: hand calculation in content.mdx: 100 ÷ (2/3) = 150; 400 − 150 = 250.
3. format = decimal, odds = 3, stake = $50.00, hedgeOdds = 2, mode = custom, hedgeStake = $40.00 gives hedge = $40.00, ifOriginal = $60.00, ifHedge = -$10.00, totalStake = $90.00. Source: hand calculation in content.mdx: 50 × 2 − 40 = 60; 40 × 1 − 50 = −10.

## FAQ

### How do I calculate a hedge bet?

For the same result either way, bet H = S₁ × d₁ ÷ d₂ on the other side, where S₁ is the original stake, d₁ its decimal odds, and d₂ the hedge decimal odds. With 100 at +400 (d₁ = 5) and a hedge at −150 (d₂ = 5/3), H = 500 ÷ 5/3 = 300, and you make 100 whichever side wins.

### What is a break-even hedge?

A hedge that returns your original stake if the original bet loses: H = S₁ ÷ (d₂ − 1). In the example above, H = 100 ÷ (2/3) = 150. If the hedge wins you end at 0; if the original wins you make 400 − 150 = 250.

### When does hedging make sense?

Hedging trades part of a possible win for less risk. It is a choice about risk, not a way to gain: the hedge bet carries the bookmaker’s margin too, so on average it costs a little. This calculator shows the numbers, not whether to hedge.

### Can I hedge a parlay or a futures bet?

Yes. Treat the whole parlay or futures bet as the original bet: enter its stake and its odds (the parlay’s combined odds), then the odds on the outcome that would make it lose.

### Why can the profit be negative on both sides?

If the hedge odds are too short, an equal hedge locks in a loss. With 100 at even money (decimal 2) and a hedge at −200 (decimal 1.5), H = 200 ÷ 1.5 = 133.33, and both outcomes lose 33.33.

## Sources

- Wikipedia, Hedge (finance), hedging a bet: https://en.wikipedia.org/wiki/Hedge_(finance)
- Wikipedia, Fixed-odds betting (fractional, decimal and moneyline odds): https://en.wikipedia.org/wiki/Fixed-odds_betting
- National Council on Problem Gambling, help and treatment (1-800-MY-RESET): https://www.ncpgambling.org/help-treatment/