Hedge

Placing a bet on the opposite side of an existing wager to guarantee a profit or reduce risk. Common when a futures bet is close to paying out.

Like selling half your stock position after a big gain: you lock in profit but cap your upside.

Why it matters

Hedging locks in guaranteed money but reduces your maximum payout. The decision should be based on bankroll management, not emotion.

How DMP uses this

DMP's EV framework helps you decide when hedging is mathematically justified vs. when letting the original bet ride offers more expected value.

Common mistake

Hedging every bet that's winning — if the original bet is still +EV, hedging gives away expected value for certainty you may not need.