How to Use Betfair Hedge Stakes (Back/Lay Greening Explained)

Hedge stakes allow you to “green up” a Betfair position so that you lock in profit regardless of the final result. This guide explains what hedge stakes are, how to calculate them, and how to use the Smarter Trades Hedge Calculator to avoid mistakes during fast-moving markets.

What Are Hedge Stakes?

A hedge stake is the amount you need to stake on the opposite side of your original bet to balance the position. Once hedged, your profit (or loss) becomes the same regardless of which selection wins.

Hedging works for:

Back-to-lay trades
Lay-to-back trades
Pre-off trading
In-play scalping
Value bets where you want to reduce variance

Why Hedge Stakes Matter

Without a calculator, hedging requires juggling odds, stakes, and profit/loss outcomes in your head — often while markets are moving rapidly. Errors can lead to unbalanced trades or accidental exposure.

Hedge stakes provide:

Reduced variance
Lower emotional stress
Cleaner long-term records
Confidence when trading bigger stakes

The Basic Hedge Stake Formula

While different calculators format it differently, the general principle is:

hedgeStake = (profitIfWin − profitIfLose) ÷ newOddsDifference

The exact calculation becomes messy when including commission, so using the Smarter Trades Back/Lay Hedge Calculator is recommended.

Worked Example: Back-to-Lay Hedge

You back a horse at:

Stake: £20
Odds: 4.0

Later, the price shortens to 2.50. Using the Smarter Trades Hedge Calculator, you can determine the exact lay stake needed to level your profit.

Once hedged, your results might look like:

Profit if horse wins: ~£14
Profit if horse loses: ~£14

The exact amounts depend on commission, which the calculator accounts for.

Worked Example: Lay-to-Back Hedge

You lay a selection for:

Stake: £30
Odds: 3.0

Later, the price drifts to 4.0. The hedge calculator will tell you the back stake required to:

Neutralise the liability
Lock in a profit regardless of the outcome

This removes the need for manual maths when the market is moving quickly.

Why Commission Makes Hedging Tricky

Betfair commission applies only to net winnings, not stakes. This makes hedge maths more complicated because:

Your win-side profit must be reduced by commission
Your lose-side result must be compared after commission
Profit balancing must consider net, not gross, values

This is why most traders rely on tools rather than mental calculations.

When Should You Hedge?

Hedging is a personal preference, but popular situations include:

When the market moves strongly in your favour
When volatility is high and you want to bank profits
When new information changes the strength of your position
When you are trading large stakes and want to reduce risk

Hedging is not required. If you believe your original position remains value, you may choose to let it run.

Best Practices When Using Hedge Stakes

1. Have a Plan Before Entering

Decide your ideal hedge price and your “emergency exit” price before placing the initial bet.

2. Avoid Mental Maths

Always use a hedge calculator. Fast markets and pressure lead to mistakes.

3. Use Sensible Staking

Do not let a hedge opportunity tempt you into oversized initial bets. Use: Kelly Staking or fractional staking to manage risk.

4. Track Every Trade

Documenting trades helps you refine hedge points and identify patterns in your trading.

Frequently Asked Questions

Does hedging guarantee profit?

Only when the second bet (back or lay) is matched. Until then, you still carry exposure.

Can I hedge in-play?

Yes, but in-play markets move quickly. Liquidity can vanish and your hedge may not be matched at the intended price. Use caution.

Does hedging reduce my EV?

Slightly, yes. Hedging locks in a smaller, certain profit instead of aiming for maximum upside. Many traders prefer this smoother equity curve.

Where can I calculate hedge stakes?

You can use the free tool here: Smarter Trades Hedge Calculator.