In sports betting, you may have come across the terms arbitrage betting and hedge betting numerous times. While you may think that they are similar strategies, they actually differ quite significantly upon closer inspection. The main point of difference between the two has to do with the timing of the bets being placed.
Let’s look at arbitrage betting. This betting strategy involves placing two or more simultaneous bets on opposing outcomes for the same sporting event through different bookmakers (i.e. Team A to win on Site A, and Team B to win on Site B). It can only be utilised when there is a discrepancy between the odds on the same sporting event offered by different bookmakers. The primary goal of arbitrage betting is to find those discrepancies in odds and place bets on opposing outcomes accordingly. This basically ensures that if you were to place a bet on each side of the outcome, you would make a profit regardless of the result.
Although arbitrage betting sounds like the greatest betting strategy available. One of the biggest downsides of arbitrage betting is account closures. Account closures generally happen due to the bookmakers noticing repeated suspect activities on a betting account. These suspect activities are made noticeable via the limits set by the bookmakers.
Hedge betting involves placing additional bets on different outcomes following an initial bet being placed. The main reason for hedge betting is to reduce the betting risk, and at the same time, guarantee profits (or protect against losses). In the simplest sense, hedge betting is a betting method to reduce, or even completely eliminate the risk of losing your bets. Bettors generally look for hedge betting opportunities when they are no longer comfortable with the bet they have made. -
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