Glossary / Strategy / Hedge
A ParlayAPI glossary entry

Hedge

A hedge is a second bet placed against an existing position to reduce or eliminate its risk - usually to lock in profit on a bet that has become likely to win, or to cap losses on one that has moved against you.

Worked example

# Preseason futures: $100 on Team A at +2000 (pays $2,100)
        # Team A reaches the final vs Team B (B priced +120)
        hedge: $900 on B at +120         # total staked: $1,000
        if A wins:  2,100 - 1,000        = +$1,100
        if B wins:  900 × 2.20 - 1,000  = +$980
        # Guaranteed four-figure profit either way

Hedging surrenders EV to buy certainty - every hedge pays the second market's vig. Whether that trade is right depends on bankroll and utility, not on the odds alone; sizing the hedge is a solvable little algebra problem once you fix the outcome you want equalized.

Where it shows up in ParlayAPI

Sizing a hedge requires the live price on the other side at the best available book - a single cross-book query. Live prices with sub-5-second freshness on majors matter when hedging in-play, where the window moves with every possession.

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