Hedge calculator

Work out the hedge stake that equalises an open position, and what the two outcomes are worth after it.

The price you already took.

The price available now on the opposite outcome.

1 equalises both outcomes. Below 1 keeps part of the original position live.

Hedge

Hedge stake$197.83
Full hedge stake, equalising$197.83
Total outlay across both stakes$297.83
Net result if the open position wins$52.17
Net result if the hedge wins$52.17
Fixed result$52.17The same amount whichever side lands, or 17.52% of the total outlay.

Fees, commissions, stake limits and the chance that a price moves or disappears before the second stake lands are all excluded.

How it is calculatedOpen

To equalise, the hedge stake is the open stake times the open decimal return divided by the hedge decimal return. Both branches then return the same amount, so the result is fixed before the event settles.

  • Equalising means the two outcomes return the same amount, so the result is fixed before the event settles.
  • A partial hedge leaves the outcomes different on purpose, and nothing is fixed.
  • Fees, commissions, stake limits and the chance that a price moves before the second stake lands are all excluded.

Worked example, illustrative

A 100 stake at +250, hedged at -130

  1. 1The open position returns 350 if it wins, and the hedge price returns 1.7692 per unit.
  2. 2The equalising hedge stake is 197.83, for a total outlay of 297.83.
  3. 3Both outcomes then return a profit of 52.17.

These figures are an illustration of the formula, not a claim about any real market.

Research only. This tool does arithmetic on numbers you type. It does not place bets, submit entries, estimate a probability for you, or tell you what to risk. If gambling stops being fun, call 1-800-GAMBLER.