Betfair Hedging Strategies: Lock in Your Profits

Written by
Traderline Team
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:
- Back Team A at 3.00 before kickoff (£10 stake)
- They score early, odds drop to 1.80
- Lay Team A at 1.80 (£16.67 stake)
- Result: Profit whether they win or not
This is trading, not gambling. You've locked in profit before the event finishes.
Why Hedge?
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.
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.
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
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.
Continue Learning
Explore related articles to deepen your knowledge
Back-to-Lay Strategy: Profit from Shortening Odds
Master the back-to-lay strategy. Profit when odds shorten by backing first and laying later at lower odds for guaranteed gains.
Betfair Arbitrage: Profit from Price Discrepancies
Learn arbitrage trading on Betfair. Exploit price differences between markets for guaranteed risk-free profits.
Betfair Cash Out: When to Use It (And When to Avoid It)
Learn when to use Betfair's cash-out feature and when manual trading is better. Understand the costs and alternatives.
