Hedging

[alan]

I still do not get it. Depending on your inital bet be it a BACK or LAY you can obviously calculate a stake that will give you a profit IF and it is a big IF the fluctuations in the market go your way. If I BACK a horse at £100 at odds of 2, the odds must decrease to say 1.5 for example for my Hedge LAY bet to be effective in giving me a profit. If the odds never go below 2 and out to 80 or more (obviously not going to win usually) I lose. The LAY bet is never matched. The same would apply in a LAY/BACK hedge situation. Or am I missing somenting?

[U.F.O]

Yes thats correct there is nothing magic about it,
sometimes you win sometimes you lose.

winning more than you lose is the only important thing.

[alan]

Thanks, If it is too good to be true it must be false. You see GUARANTEED PROFIT on many of these hedging sites. Read the small print is my advice. I am not saying Hedging does not work if you adopt the correct strategy, just be aware that you a still relying on the Market going your way, just like any other bet.

[GaryRussell]

Yes, you are still gambling on which way the price will go. Be wary of anyone who advertises a guaranteed profit.

[Fixador]

Alan, beyond basic hedging - there is further mathematical trickier that can be applied to one or more runners - 'leveraging', creating 'freebets' - and 'greening up'.

There are articles in this forum you could search out on these subjects - which also so how to minimise losses.

But still - the road to profit requires a stratergy of how to guess which way the price will go.