Hedging Example: Back $10 at 4.00, Lay at 2.00

This example walks through hedging a $10.00 back bet placed at 4.00, using a lay bet at the current exchange odds of 2.00 with 5% commission.

Calculation

Input	Value
Back Odds	4.00
Back Stake	$10.00
Back Profit (if wins)	$30.00
Current Lay Odds	2.00
Commission	5%

Result	Amount
Lay Stake Required	$20.00
Lay Liability	$20.00
Profit if selection wins	+$9.50
Profit if selection loses	+$9.50

Explanation

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

Lay Stake = (Back Odds × Back Stake) ÷ Lay Odds = (4.00 × $10.00) ÷ 2.00 = $20.00
Back Profit = $10.00 × (4.00 − 1) = $30.00
Lay Liability = $20.00 × (2.00 − 1) = $20.00

Because the lay odds (2.00) are lower than the original back odds (4.00), this hedge locks in a guaranteed profit of approximately $9.50 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.