Hedging Example: Back $10 at 2.50, Lay at 1.80

This example walks through hedging a $10.00 back bet placed at 2.50, using a lay bet at the current exchange odds of 1.80 with 5% commission.

Calculation

Input	Value
Back Odds	2.50
Back Stake	$10.00
Back Profit (if wins)	$15.00
Current Lay Odds	1.80
Commission	5%

Result	Amount
Lay Stake Required	$13.89
Lay Liability	$11.11
Profit if selection wins	+$3.69
Profit if selection loses	+$3.69

Explanation

To hedge, you place a lay bet at the current exchange odds of 1.80:

Lay Stake = (Back Odds × Back Stake) ÷ Lay Odds = (2.50 × $10.00) ÷ 1.80 = $13.89
Back Profit = $10.00 × (2.50 − 1) = $15.00
Lay Liability = $13.89 × (1.80 − 1) = $11.11

Because the lay odds (1.80) are lower than the original back odds (2.50), this hedge locks in a guaranteed profit of approximately $3.69 on either outcome after 5% commission.

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Disclaimer: These results are worked examples for educational purposes only. Always verify your own calculations before placing any bets. Betting involves risk — only bet what you can afford to lose.