Hedging Example: Back $10 at 3.00, Lay at 2.50

This example walks through hedging a $10.00 back bet placed at 3.00, using a lay bet at the current exchange odds of 2.50 with 5% commission.

Calculation

Input	Value
Back Odds	3.00
Back Stake	$10.00
Back Profit (if wins)	$20.00
Current Lay Odds	2.50
Commission	5%

Result	Amount
Lay Stake Required	$12.00
Lay Liability	$18.00
Profit if selection wins	+$1.90
Profit if selection loses	+$1.90

Explanation

To hedge, you place a lay bet at the current exchange odds of 2.50:

Lay Stake = (Back Odds × Back Stake) ÷ Lay Odds = (3.00 × $10.00) ÷ 2.50 = $12.00
Back Profit = $10.00 × (3.00 − 1) = $20.00
Lay Liability = $12.00 × (2.50 − 1) = $18.00

Because the lay odds (2.50) are lower than the original back odds (3.00), this hedge locks in a guaranteed profit of approximately $1.90 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.