Definition: To bet the opposite of an original bet to offset the possible loss on the original action. Hedge can be used as a noun or a verb.

 

Example: Hedging is usually done for defensive purposes, like if you've already hit the first 10 games on an 11-team parlay. The hedge would be betting the opposite of the 11th team you took in the original parlay bet. That way, if the 11th team loses and you lose your parlay, you'll still win money on the "hedge" bet to make up for it.