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When the free bet is placed the other bookmakers or betting exchanges are used to hedge all the possible outcomes so that no matter what happens the value of the free bet is retained. At its simplest, a matched bet involves placing a back bet using the free bet at a bookmaker while placing the opposing lay bet at a betting exchange. More ...
A Dutch or an arb is profitable if the sum of the reciprocals of the decimal odds of each selection is less than 1, and each bet is sized such that the payout in each outcome are the same. Additionally, the profitability of a Dutch/arb can be expressed as 1-R, where R is the sum of the reciprocals. [2]
A betting strategy (also known as betting system) is a structured approach to gambling, in the attempt to produce a profit. To be successful, the system must change the house edge into a player advantage — which is impossible for pure games of probability with fixed odds, akin to a perpetual motion machine. [ 1 ]
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An emotional hedge is a psychological and financial strategy used to mitigate potential negative emotions by offsetting a personally significant outcome with a compensatory action. [1] The concept is most commonly applied in sports betting , where an individual places a wager against their favored team. [ 2 ]
E.g. £100 each-way fivefold accumulator with winners at Evens ( 1 ⁄ 4 odds a place), 11-8 ( 1 ⁄ 5 odds), 5-4 ( 1 ⁄ 4 odds), 1-2 (all up to win) and 3-1 ( 1 ⁄ 5 odds); total staked = £200 Note: 'All up to win' means there are insufficient participants in the event for place odds to be given (e.g. 4 or fewer runners in a horse race).
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In a hedge fund, investors pool their money to purchase specific investments. A hedge fund can invest in just about anything. Learn more here at GoBankingRates