If you’ve been into sports betting in Canada for a while, you’ve likely heard of arbitrage and hedging. These are two of the strategies bettors use to reduce risk and secure profits, rather than just hoping for the best.
Before you register and start betting on 1Win Canada or any other bookie, you want to learn these strategies and how they can help you capitalize on odds and boost winning chances. Arbitrage uses odd variations to ensure a profit by betting on every possible outcome across several bookmakers. Conversely, hedging limits losses or locks in a profit by changing bets on the same event.
So, which should you choose? Should you play it safe with hedging or hunt risk-free money using arbitrage? We will discuss in this post what these strategies are and which one might be the better option.
Understanding Sports Betting Arbitrage
Sportsbooks don’t always agree on the exact chances of an outcome, which leads to odds discrepancies. Let’s say Team A is playing Team B, and two sportsbooks offer different odds:
- Sportsbook 1: Team A to win at 2.10 odds
- Sportsbook 2: Team B to win at 2.05 odds
Arbitrage bettors exploit these price differences by placing bets on all possible outcomes of a game across different bookmakers. If done correctly, this guarantees a small but risk-free profit, no matter who wins.
Of course, this isn’t as easy as it sounds. Arbitrage betting requires:
- Quick execution because odds change fast.
- Multiple sportsbook accounts since you need access to different bookmaker odds.
- Accurate calculations, since placing the wrong bet amount can wipe out profits.
What Is Hedging?
Hedging in sports betting is like playing it safe without backing out completely. It means placing a second bet that goes against your original bet to either reduce losses or lock in some profit, no matter how the game ends. While it might not give you the biggest payout, it protects you from walking away empty-handed.
Assuming you stake $100 on Team A to win at 3.00 odds (potential profit of $200). Let’s say Team A leads early as the game progresses, but the game is still close. You lay another bet on Team B at greater odds to cover your initial stake to safeguard your earnings.
If Team A wins, you make a smaller profit. If Team B stages a comeback, your hedge bet cushions your loss or even gives you a small guaranteed return. The key here is trading a portion of your potential winnings for peace of mind.
When Do Bettors Use Hedging?
Hedging makes sense when:
- Your original bet is looking good, but you’re not fully confident it will hold.
- You’re one game away from winning a parlay.
- You’ve placed a long-term bet (like a tournament winner) on the 1Win website or another sportsbook and want to secure profit before the final game.
Which Strategy Should You Choose?
Before deciding which strategy suits you, let’s quickly compare arbitrage and hedging side by side:
| Factor | Arbitrage Betting | Hedging |
| Purpose | Guarantee a profit regardless of the outcome. | Reduce risk or lock in some winnings. |
| How it works | Bets are placed on all outcomes across different sportsbooks to exploit odds differences. | A second bet is placed against the original wager to minimize losses or secure some profit. |
| Profit potential | Small but guaranteed profits. | Varies—could secure a small profit or prevent a big loss. |
| Risk level | There is no risk if you do it correctly. | Some risk, but lower than an unhedged bet. |
| Time and effort | Requires constant odds monitoring and fast execution. | More flexible; depends on game progress and odds shifts. |
| Sportsbook reaction | Can lead to account restrictions if detected. | Generally accepted as normal betting behavior. |
Which Strategy Should You Choose?
How you want to gamble and how much work you are ready to do will determine which of arbitrage and hedging you choose.
Arbitrage betting is for you if you want assured gains and are not bothered by the additional effort of looking over sportsbooks for odds variations. However, many sportsbooks don’t like it, and if they suspect you’re arbing, they might limit your account.
On the other hand, if you are more of a strategic thinker looking to guard a winning bet or cut losses, hedging is the best approach. It’s less stressful, more flexible, and accepted by sportsbooks. Although you will not always profit, you will prevent suffering losses. You can engage in hedging on many sportsbooks, including the 1Win site.
Conclusion
Both arbitrage and hedging are smart ways to bet, but they serve different purposes. Arbitrage is all about getting small, steady profits by taking advantage of odds differences across sportsbooks. Hedging, on the other hand, is about reducing risk—a safety move to either lock in a win or prevent a big loss when making a 1Win bet.
At the end of the day, the best strategy is the one that fits your risk tolerance and bankroll. No bet is ever 100% safe. When you initiate a 1Win login to bet on sports, remember to always wager responsibly, and never spend more than you can afford to lose.
