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To further elaborate how hedging works, here's an excellent on tips on how to understand it in less difficult terms. Imagine betting $20 in an outdoor event wherein the it's quite possible at 5:1. If you placed a bet on Team A, shipped to you $100 ($20x5) and in the event it team loses, you only lose $20 which is your initial investment capital. How does one hedging appeal to this casino craps bet? You can do so if, for example, the odds for Team B are 2:1 Purchasing place a bet of $50, these win $100
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