When betting and hedging a freeplay of given size this establishes the risk-free real dollar yield that may be acquired.
Freeplay Size: The freeplay estimated size in dollars
Hedge Bet: The dollar amount wagered on the hedge to remove risk-free value $ Profit: The risk-free profit in real dollars acquired from the freeplay bet and hedge % Profit: Dollar profit as percent of freeplay predicted size.
Freeplay bonuses are becoming more routine for books to offer as opposed to cash bonuses. Many bet placers treat these freeplays much like any other bonus and will place bets in their usual manner. Since the freeplay bonus dollars are forfeited once the bet is made, regardless of the outcome, this is not the best choice of use for freeplay.
The use of this calculator will help determine the expected gain from wagering freeplay and then hedging the differing side at another book. You will find that in almost every instance it will never make sense to wager the freeplay on a “sure thing” and your best results will come from using your freeplay to wager on the biggest long shot available.
Note: The calculator will recognize US or decimal odds. For Decimal odds more than or equal to 100, prelude the odds with either a “0″ or a “d”. For example, decimals odds of 200.0000 can be entered as either “d200″ or “0200″.
For example let’s say that a book offers you a $200 freeplay which you bet at +200 and hedge -215, You’d enter $200 into the “Freeplay Size” box, +200 into the “Freeplay Line” box, and -215 into the “Hedge Line” box.
When you click “Calculate” you see that the proper amount for the hedge bet would be $273.02 and your locked-in profit would be $126.98. This means that you would have captured 63.49% of the notional ($200) value of the freeplay.
Now compare that to the same $200 freeplay, bet at -110 (entered into the “Freeplay Line” box) and hedged at +120 (entered into the “Hedge Line” box). After clicking “Calculate” you see that the proper hedge bet under these circumstances would be $82.64 and the locked-in profit would then be $99.17. This means that you would have captured 49.59% of the notional value of freeplay.
The conclusion which could then be drawn from this is that betting a freeplay at +200, and hedging at -215 would be a better usage of the freeplay than betting at -110 and hedging at +120.