How the hedge stake is calculated
Hedging is buying certainty: you give up part of the maximum win to eliminate the loss. The math is simple — stake enough on the other side that both outcomes return the same total.
When hedging is worth it
Whether you should hedge is a different question than how. Every hedge is itself a bet placed at the book's price, which usually carries hold; the guaranteed number is almost always less than the EV of letting it ride. Hedge when the certain money genuinely changes something, not because the sweat is uncomfortable.
