The Green Up method.
Bet and Lay the same selection to equal amounts, making sure the Bet odds are bigger than the Lay odds.
Divide the profit by the available Lay odds for an All Green screen.
Place a Bet in a falling market, or a Lay in a rising market.
When the odds move in your favour, Lay the same amount in the falling market, or a Bet the same amount in the rising market.
You now have the equivalent of a "free" Bet - a win or break even situation.
Divide that free Bet profit by the current Lay odds to "Green up" for a win/win situation.
Example.
Suppose we bet £10 on a horse at 10.0 (9/1) in a falling market.
The odds then shorten to 9.0 (8/1), so we Lay the same horse for £10 at odds of 9.0.
Win. If our selection wins, we win £10 x 9.0 = £90 less Lay liabilities of £10 x 8 = £80 = a profit of £10.
Lose. If our selection loses, we lose £10 on the bet, but have a successful £10 Lay = Break even, profit = Zero.
To green up, we need to divide the "free" Bet profit of £10 by the current Lay odds, and place a second Lay :-
Lay stake to equalize or green up = £10 / 9.0 = £1.11.
After equalizing (greening up) :-
If our selection wins, we win £10 x 9.0 = £90 less Lay liabilities of (£10 x 8 = £80) + ( £1.11 x 8 = £8.88) = 88.88 a guaranteed profit of £1.12.
If our selection loses, we lose £10 on the bet, but have successful Lays of £10 + £1.11 = £11.11 profit = £1.11.
That is a simple Hedging method, but the big drawback for a small stakes trader is that in order to place your Lay of £1.11, you would then have to mess about Laying less than the minimum £2 on Betfair.
A rising market with a £10 Lay at odds of 9.0 and a Bet of £10 at odds of 10.0 would again produce a Bet profit of £10 for a win and a break even for a lose.
Suppose the Lay odds rise to 10.0.
Divide the £10 win profit by the current Lay odds (10.0), and Lay £1 at odds of 10.0 to equalize your trade for an All Green Screen profit of £1.00 no-matter what the outcome of the event.
In this £10 example, you would need to Lay at less than the £2 minimum.
A better way to Hedge is to use The 2 Transactions Method to complete your Hedge.
This method works with any size stakes, any size odds. and eliminates the need to place Bets or Lays at less than the £2 minimum.
This Hedging method is ideally suited to the smaller stakes trader.
Place a Bet or Lay.
When the odds change, place an opposing Bet or Lay, staking to trade out.
Two simple but extremely effective formulas give the stakes required for either a falling or rising market move.
If we Bet first, and the odds shorten, we calculate the stake for our Lay at lower odds.
If we Lay first, and the odds lengthen, we calculate the stake for our Bet at Higher odds.
Example. Odds shortening. Bet first, Lay 2nd.
Suppose we bet £10 on a horse at 10.0 (9/1)
The odds then shorten to 9.0 (8/1).
We can Lay £11.11 for a successful Hedge and a guaranteed profit of £1.11 no-matter what the outcome of the race.
Bet = £10 at odds of 10.0
Lay = £11.11 at odds of 9.0
Horse Wins + £90 less £88.88 lay liability = + £1.12
Horse Loses + £11.11 successful Lay less £10 losing bet = + £1.11
Odds lengthening. Lay first, Bet 2nd.
Suppose we Lay £10 on a horse at 9.0 (8/1)
The Bet odds then lengthen to 10.0 (9/1).
We can Bet £9 for a successful Hedge and a guaranteed profit of £1.00 no-matter what the outcome of the race.
Lay = £10 at odds of 9.0
Bet = £9 at odds of 10.0
Horse Wins + £81 less £80 lay liability = + £1
Horse Loses + £10 successful Lay less £9 losing bet = + £1
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