This example walks through hedging a $10.00 back bet placed at 3.00, using a lay bet at the current exchange odds of 2.00 with 5% commission.
| Input | Value |
|---|---|
| Back Odds | 3.00 |
| Back Stake | $10.00 |
| Back Profit (if wins) | $20.00 |
| Current Lay Odds | 2.00 |
| Commission | 5% |
| Result | Amount |
|---|---|
| Lay Stake Required | $15.00 |
| Lay Liability | $15.00 |
| Profit if selection wins | +$4.75 |
| Profit if selection loses | +$4.75 |
To hedge, you place a lay bet at the current exchange odds of 2.00:
Because the lay odds (2.00) are lower than the original back odds (3.00), this hedge locks in a guaranteed profit of approximately $4.75 on either outcome after 5% commission.