Hedging is a popular betting strategy that involves placing bets on different outcomes to ensure a profit regardless of the result. This strategy is often used by intermediate sports bettors who want to minimize their risk and maximize their profits. In this article, we will discuss hedging and how to use the techniques to create a "green book" on Betfair to guarantee a profit regardless of the outcome!
What is hedging in sports betting?
Hedging is a betting strategy that involves placing multiple bets on different outcomes to minimize your risk and maximize your profits. This is done by placing a bet on one outcome and then placing a second bet on a different outcome to ensure a profit regardless of the result. Hedging is often used in sports betting when the odds have changed, or are moving rapidly, and the bettor wants to lock in a profit.
For example, let's say you bet $100 on a football game with odds of $3.00. If the team you bet on wins, you'll profit $200. However, if the team loses, you will lose your $100 bet. Now say there's a few injuries that cause the odds to change and the opposition team drifts out to odds of $3.00. To hedge your bet, you could place a second bet on the opposing team for $100. Now regardless of which team wins, you'll win $200 on one bet and lose $100 on the other, thus you've guaranteed a $100 profit regardless of the outcome. This process is known as hedging your bets.
What is a green book on Betfair?
A green book is a betting strategy used by intermediate sports bettors that is similar to hedging at a sportsbook, but this time we're using the back and lay markets on Betfair to place multiple bets on different outcomes. Again, we're looking to lock in a profit regardless of the result. On Betfair, your results are display in green if they are profitable, so to have all outcomes displayed in green is what we're trying to achieve, and hence the name, green book.
To create a green book on Betfair, you need to place a back bet and a lay bet on the same outcome. A back bet is a bet that a particular outcome will happen, while a lay bet is a bet that the outcome will not happen. By placing a back and lay bet on the same outcome, you are effectively hedging your bet and locking in a profit.
To do this, all you have to do is back at higher odds and lay at lower odds. This will guarantee you a profit (ignoring commissions).
For example, let's say you want to create a green book on a horse race. You could back Winx at $4.00 in early markets for $100. If she wins, you'll lock up $300 profit. Then with a wave of support, the price of Winx is smashed into $2.00. We could go and back every other horse in the race, but the easier way is just to lay Winx on Betfair. That is, bet against her winning. So if you lay Winx at $2.00 for $200, you're risking $200 to win $200. So now if Winx wins, we win $300 profit on our back bet, and lose $200 on our lay bet for a $100 profit. If Winx loses, we lose our $100 back bet and win our $200 lay bet, so again it's a $100 profit. We're profiting $100 regardless of which horse wins the race!
For simplicity, these calculations don't include Betfair commissions that may be payable.
If you watch horse racing live, you'll see the betting markets fluctuate very rapidly on the Betfair exchange. While this can be confusing and intimidating, and also a potentially dangerous market for new punters to enter, for those with some experience, it's a great way to hedge bets and create a green book as the odds are moving so rapidly.
How to create a green book on Betfair
To create a green book on Betfair, you need to follow these steps:
Find a sporting event with volatile odds: Look for a sporting event with rapidly changing odds. This will allow you to find opportunities to lock in a profit.
Place a back bet: Place a back bet on the outcome you think is most likely to happen. This will be your main bet.
Place a lay bet: Place a lay bet on the same outcome as your back bet but at lower odds. This will hedge your bet and ensure a profit.
Adjust your bets: Adjust your bets as the odds change to ensure you lock in a profit.
Monitor the game/race: Monitor the game/race and adjust your bets if necessary.
In conclusion, hedging is a popular betting strategy that is often used by sports punters to minimize their risk and maximize profits. A green book is a betting strategy used at Betfair to lock in a profit regardless of the outcome. By using the back and lay markets on Betfair, you can create a green book which is an essential tool for a sports bettor to lock in profits.