Hedging Calculator

This calculator tells you how much to back or lay when trading out in order to leave equal profit or loss across all selections. It is especially useful for lay the draw trades, whether you need to lock in a profit or protect your bank by cutting a loss.



Laying First

Here's how to use the hedging calculator for trades in which you lay first, for example, LTD:

  1. Click the "Laying First" button.
  2. Enter the "Lay Price" (decimal odds), "Lay Stake" and "Back Price" (decimal odds).
  3. Enter a value for betting exchange commission if you wish.
  4. Click on the "Calculate" button to display how much you need to back out for and how much profit (or loss) you will be left with.

Perhaps you have layed the draw in a match at 3.90 for £100 and the favourites go 1-0 up.

The draw price rises to 6.40 and you wish to secure an equal profit across all three outcomes; home win, away win and draw.

You enter the figures into the hedging calculator above and you're able to go right back to the betting exchange to back the draw for £60.94 in order to bank £39.06 profit (less commission).​

Another common lay the draw exit strategy is to exit a trade at 2.00 around the 65-70 minute mark in order to cut a loss.

Should you lay the draw at 3.90 and the score is still level when the price hits 2.00, the calculator shows that if you back the draw for £195 you will cut your loss to £95 across all three outcomes.

Backing First

You can also use the calculator for bet hedging in the Match Odds market. This is often known as a win draw win bet. For example:

  1. Click the "Backing First" button.
  2. Enter the "Back Price" (decimal odds), "Back Stake" and "Lay Price" (decimal odds).
  3. Enter a value for betting exchange commission if you wish.
  4. Click on the "Calculate" button to display how much you need to lay for and how much profit (or loss) you will be left with.

It could be that you have backed Manchester United to win at 1.80 for £100. It's simply a bet if you let it run, but a football trader will usually look to manage his/her position in-play.

After Manchester United take the lead, their price comes in to 1.28 and you want to trade out to secure a profit no matter what else happens. This is done with a simple lay bet, but you need to know how much to lay for.

Within seconds, the hedging calculator tells you to lay £140.63 and you're out with your £40.63 profit (less commission).