Hedging Example: Back $25 at 3.00, Lay at 2.00

This example walks through hedging a $25.00 back bet placed at 3.00, using a lay bet at the current exchange odds of 2.00 with 5% commission.

Calculation

Input	Value
Back Odds	3.00
Back Stake	$25.00
Back Profit (if wins)	$50.00
Current Lay Odds	2.00
Commission	5%

Result	Amount
Lay Stake Required	$37.50
Lay Liability	$37.50
Profit if selection wins	+$11.88
Profit if selection loses	+$11.88

Explanation

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

Lay Stake = (Back Odds × Back Stake) ÷ Lay Odds = (3.00 × $25.00) ÷ 2.00 = $37.50
Back Profit = $25.00 × (3.00 − 1) = $50.00
Lay Liability = $37.50 × (2.00 − 1) = $37.50

Because the lay odds (2.00) are lower than the original back odds (3.00), this hedge locks in a guaranteed profit of approximately $11.88 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.