Hedging Example: Back $10 at 2.50, Lay at 2.00

This example walks through hedging a $10.00 back bet placed at 2.50, using a lay bet at the current exchange odds of 2.00 with 5% commission.

Calculation

Input	Value
Back Odds	2.50
Back Stake	$10.00
Back Profit (if wins)	$15.00
Current Lay Odds	2.00
Commission	5%

Result	Amount
Lay Stake Required	$12.50
Lay Liability	$12.50
Profit if selection wins	+$2.38
Profit if selection loses	+$2.38

Explanation

To hedge, you place a lay bet at the current exchange odds of 2.00:

Lay Stake = (Back Odds × Back Stake) ÷ Lay Odds = (2.50 × $10.00) ÷ 2.00 = $12.50
Back Profit = $10.00 × (2.50 − 1) = $15.00
Lay Liability = $12.50 × (2.00 − 1) = $12.50

Because the lay odds (2.00) are lower than the original back odds (2.50), this hedge locks in a guaranteed profit of approximately $2.38 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.