Hedging Example: Back $10 at 5.00, Lay at 3.00

This example walks through hedging a $10.00 back bet placed at 5.00, using a lay bet at the current exchange odds of 3.00 with 5% commission.

Calculation

Input	Value
Back Odds	5.00
Back Stake	$10.00
Back Profit (if wins)	$40.00
Current Lay Odds	3.00
Commission	5%

Result	Amount
Lay Stake Required	$16.67
Lay Liability	$33.33
Profit if selection wins	+$6.33
Profit if selection loses	+$6.33

Explanation

To hedge, you place a lay bet at the current exchange odds of 3.00:

Lay Stake = (Back Odds × Back Stake) ÷ Lay Odds = (5.00 × $10.00) ÷ 3.00 = $16.67
Back Profit = $10.00 × (5.00 − 1) = $40.00
Lay Liability = $16.67 × (3.00 − 1) = $33.33

Because the lay odds (3.00) are lower than the original back odds (5.00), this hedge locks in a guaranteed profit of approximately $6.33 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.