This article deals with how to cover your bets at betting exchanges profitably and we describe how to do so.
First of all, you have to know the concept of a “lay”-bet in which you bet against a certain outcome and you will take the position as a book-maker. It is also called “to sell the bet”. This strategy is important if you bet to protect your winnings. This is also called “hedging” or “arbitrage” where you try to profit from odds fluctuation.
At various betting exchanges (e.g. Betfair) it is possible to bet on a team (“back”-bet) and in case the team goes into the lead to bet against the team (buy a “lay”-bet or sell the bet) and thus hedge against any outcome of the game. You would gain money at a win, draw and loss – your bet is now safe and without any risk.
Examples of hedging/coverage bets
1. Bet against a team (lay-bet) and hedge against it.
Imagine a game between Bayern Munich and Dortmund. How about a “lay”-bet against Dortmund? (you bet against a Dortmund-win) in the case that Bayern Munich does not go into lead after the first few minutes you can hedge your “lay”-bet with a “back”-bet on Dortmund. Now you bet on a Dortmund-win and profit from the odds fluctuation because of the higher odds that Dortmund will get the further the game proceeds. Now you can carelessly wait for the end of the game because your bet is hedged against every outcome of the game.
2. Bet on a team (back-bet) and hedge against it.
This is the exact reverse bet of the first example. You bet on a certain team (“back”-bet). In case your team goes into lead the odds for your team to win will decrease. Now you place a “lay”-bet against your team. Due to the fluctuations of the betting odds you will profit from any result.
3. Bet against a draw (lay-bet) and hedge against it.
Of course you can do the same with a draw. You bet against a draw (“lay”-bet). After the first goal you bet on a draw since the odds for a draw increase after a goal is scored.
Let’s say you bet 10 euro on a draw with odds of 3.0. Now your maximum loss is 20 euro. After the first goal the odd of a draw increase to 5.0. At this point it is time to place your “back”-bet (e.g. 6 euro) on a draw. So now, this is how the whole scenario would look like:
After the first “lay”-bet:
- Win Dortmund – 10 euro profit
- Win Bayern Munich – 10 euro profit
- Draw – 20 euro loss
And now after the second „back“-bet:
- Win Dortmund – 4 euro profit (10 euro win from the “lay”-bet minus 6 euro stake “back”-bet)
- Win Bayern Munich – 4 euro profit (10 euro win from the “lay”-bet minus 6 euro stake “back”-bet)
- Draw – 10 euro profit (odd 5.0 times 6 euro = 30 euro minus 20 euro loss of the “lay”-bet).
We wish you the best of luck, and we remind you to bet responsibly. Profitable sport betting is about growing your bankroll a little at a time, while ultimately protecting it just the same.