So, would most people still buy insurance if the government didn’t make them do so? Probably. Here’s the thing: insurance is expensive, and it’s entirely possible that you could drive your entire life and never need to use it. Mandatory in every US state (except New Hampshire), car insurance is a hedge which protects car owners against the financial burdens of getting in a car crash. In essence, a hedge is any action taken to reduce the risk of a damaging outcome occurring in the future.Ĭar insurance is a great example. Let’s take a moment to understand the concept behind a hedge. To mitigate your losses and reduce bankroll exposure after placing a riskier bet.When doing so allows you guaranteed profit betting on a sporting event.In the end, the goal is always to limit potential losses.

Depending on the scenario, this approach can secure profit regardless of which outcome occurs or reduce exposure on your initial bet. Hedging involves placing a new bet on a different outcome than the one you originally wagered on. While hedging bet can seem like a challenging strategy to master, the concept is simple.

Fundamentally, hedging is a risk management strategy to help you minimize losses and maintain a healthy bankroll.

Hedging is a method used to either reduce your risk or guarantee a profit when betting on sports.

Sports betting methods or systems