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Using Fairexchange, Fairexchange 9, Fairexch9 to Hedge
This section discusses Fairexchange hedging tactics. Backing and laying the same option after the odds have altered in your favour is known as hedging. While the following description is particular to Fairexchange 9, Fairexch9, the notion applies to any betting exchange that allows you to bet both for and against a pick. After reading this advice, make sure to try out our online hedging calculator to play with some numbers.
Betting with Both Back and Lay on Ag.Fairexchange and Fairexchange9.Com
A back wager pays out if the selection wins, whereas a lay wager pays out if the selection loses. When you back an outcome, you are acting like a traditional punter. When you lay an outcome, you are acting as a bookmaker. This section assumes you are already aware with the consequences of backing and laying. Check out our information on bookmakers vs. betting exchanges to understand more about these topics.
Hedging Vs. Arbitrage on Fairexchange9, Betting Exchange Login
The timing of arbitrage and hedging differs. In a sports betting context, we define an arbitrage strategy as one that makes two or more simultaneous wagers on an event with a net profit equal to or higher than $0.00 regardless of the event outcome.
A hedging strategy, on the other hand, is one in which we make one or more wagers on an event on which we have previously wagered so that the net profit across the original and new wagers is equal to or greater than $0.00 regardless of the event outcome.
Fairexch, Fairexchange 9 Login, Ag.Fairexchange 9, Fair Exchange Betting, Fairexch9 Login
Arbitrage betting normally includes odds differences between bookmakers; however, possibilities do exist from time to time owing to bookmaker error. Hedging entails changing the odds over time and can be accomplished with the same bookmaker.
Hedging is easier with an exchange like Fairexch9 com than with a traditional bookmaker. Assume you bet on Tiger Woods to win a golf tournament and he leads after the first day. To hedge with a typical bookmaker, you’d have to bet on the rest of the field, whereas with Fairexch9 com, you can simply lay Tiger Woods.
Notation in Fairexch9.Com, Fairexch9 App, Fair Exchange 9
The following notation is used in the theory below. All betting bets have two variables:
- The wager stake amount, which is expressed in currency ($, £, €, etc.).
- The betting odds
The decimal odds method, which is widespread in Australia, New Zealand, and Europe, is used in the equations above. A winning $10 bet at 1.50 decimal odds would result in a $15 payout for a $5 profit. 1.50 decimal odds translate to 1/2 fractional odds and -200 American odds.
Hedging on Fairexchange: Wager Calculation and Profit Guarantee
Hedging on Fairexchange necessitates at least two bets. One wager will back the option, while the other will lay it. Let WB denote the amount of the back wager stake (in this case, $10.00).
- DB = back wager decimal odds (for example, 1.50).
- WL = lay wager stake amount (in this case, $10.00).
- DL = lay wager decimal odds (for example, 1.45).
We have the option of hedging for a guaranteed profit if DB > DL. This is due to the fact that the payoff for a successful back wager will be greater than the odds at which the losing lay wager must pay out.
Please keep in mind that we are ignoring the minimum stake amount ($5.00 for AUD accounts) as well as currency rounding for your convenience.
All references to * in the following equations denote the multiplication sign (for example, 5 * 2 = 10). Multiplication and division take precedence over addition and subtraction in terms of operation order (i.e., 1 + 2 * 3 = 1 + (2 * 3) = 7). Figures in parentheses represent equation numbers (for example, (1)). These are used throughout the worked examples to refer back to the formulas.
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