Betfair Hedging Strategies: Lock in Your Profits

Traderline Team

Written by

Traderline Team

2025
4 min read

Hedging is how you turn gambling into trading. Instead of hoping your bet wins, you guarantee profit by covering multiple outcomes. Here's exactly how to do it.

Hedging Essentials

  • Hedging = covering outcomes for guaranteed profit
  • Back-lay hedging = most common method
  • Dutching = spreading stakes across selections
  • Traderline automates all calculations
  • Lock profits early, don't wait for events to finish

What is Hedging?

Hedging = placing bets on different outcomes to guarantee profit or limit loss.

Simple example:

  1. Back Team A at 3.00 before kickoff (£10 stake)
  2. They score early, odds drop to 1.80
  3. Lay Team A at 1.80 (£16.67 stake)
  4. Result: Profit whether they win or not

This is trading, not gambling. You've locked in profit before the event finishes.

Why Hedge?

100%
Guaranteed Profit
High
Risk Reduction
Live
Flexibility

1. Lock in Profits: Secure winnings before the event ends. No more nail-biting finishes.

2. Reduce Risk: Spread exposure across outcomes. Volatile markets become manageable.

3. Stay Flexible: Adjust positions in-play as odds shift and new information emerges.

Back-Lay Hedging (The Foundation)

The most common and profitable hedging technique.

Perfect Hedge Example

Pre-match: Back Liverpool at 2.50 (£10 stake)

  • Potential win: £15 profit

In-play: Liverpool scores, odds drop to 1.60

Action: Lay Liverpool at 1.60 (£15.63 stake)

Result:

  • If Liverpool wins: Win £15 (back) - Lose £9.38 (lay) = £5.62 profit
  • If Liverpool doesn't win: Lose £10 (back) + Win £15.63 (lay) = £5.63 profit

Guaranteed £5.62 either way!

When to use:

  • Odds have moved significantly in your favor
  • You want to secure profit before event finishes
  • Uncertainty increases (injuries, red cards, etc.)

Traderline Hedging Modes

Cashout Mode

Splits profit/loss evenly across ALL outcomes.

Example:

  • Backed Liverpool at 3.00, now 1.80
  • Cashout and P&L modes calculates exact lay stake
  • Result: Same profit whether Liverpool wins or not

Use when: You want guaranteed equal profit regardless of winner.

Freebet Mode

Focuses profit on ONE selection, zeros out others.

Freebet Example

Situation: Backed Benfica at 2.00 (£10), odds now 1.80

Action: Freebet on Benfica

Result:

  • Benfica wins: £2 profit
  • Benfica doesn't win: £0 profit/loss (break even)

Perfect when you're confident but want insurance.

Trade Button

One-click close ALL positions at best available price. Better control than Betfair's auto cash-out.

Dutching: Multi-Selection Hedging

Back multiple selections to guarantee same return.

Example - Horse Racing:

  • Back Horse A at 5.0
  • Back Horse B at 6.0
  • Back Horse C at 8.0

If any horse wins, you profit. Covers more outcomes than single bet.

When to Dutch

Best for:

  • Correct score markets (cover multiple scores)
  • Horse racing with several contenders
  • Set betting in tennis
  • Any market with multiple likely outcomes

Avoid: When one outcome is clearly most likely (waste of stakes)

Hedging by Sport

Football

Best opportunities:

  • After goals (odds shift dramatically)
  • Half-time (odds reset for second half)
  • Red cards or injuries (major odds changes)

Strategy: Back favorites pre-match, lay after they score

Horse Racing

Best opportunities:

  • Pre-race (back early, lay when odds shorten)
  • In-running (back/lay as positions change)

Strategy: Dutching multiple horses, then trading out winners

Tennis

Best opportunities:

  • After winning first set (odds shift significantly)
  • Break points (momentum swings)
  • Between games (stable moments to hedge)

Strategy: Back underdog at high odds, lay after winning set

Common Hedging Mistakes

Avoid These Errors

1. Hedging too early: Leaves profit on table

2. Over-hedging: Reduces profit to near zero (unless scalping)

3. No calculator: Manual calculations lead to errors (use Traderline)

When NOT to Hedge

Don't hedge if:

  • You're very confident in original bet
  • Liquidity is too low to exit cleanly

Let winners run sometimes. Not every trade needs hedging.

Calculating Hedge Stakes

Smart approach: Use Traderline's automatic calculator

  • Instant calculations
  • Accounts for commission
  • Shows profit for all outcomes
  • One-click execution (if selected)

Next Steps

Hedging Action Plan

  • Learn: Back-lay hedging first (simplest method)
  • Practice: Small stakes (£1-5) until comfortable
  • Use: Traderline's automatic hedging displays
  • Try: Cashout mode for guaranteed equal profits
  • Experiment: Freebet mode when confident in one outcome
  • Apply: Dutching in multi-outcome markets
  • Don't: Hedge every trade (let some winners run)

Hedging transforms betting into trading. Master it and you'll never sweat a finish again - you've already locked in profit.

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