Hedge Trade on Rugby League
Thursday 16th Jul 2009 12:00 AM
This is a hedge trade on Rugby League. Head to head without using the hedging tool the trade is worth about 1.8%. What we have done is hedged the trade towards more of a return if Souths beat Brisbane. Why would we do this? This is where information comes into play in trading decisions. It has just been announced today that Lockyer and Thaiday are out of the match and Hunt and Hodges are in doubt. A depleted Broncos side greatly increases Souths chances of winning so we take the hedge. We now get a return of around 4% if Souths get up and only 1% return if the Broncos get away with the win. Some of you will be asking when looking at the trade that the "draw" hasn't been taken into account. This is where it is important to know the rules of the trade with the bookmaker your dealing with. In this case it's Luxbet and the TAB NZ and both bookmakers are offering the prices inclusive of extra time. As always the risk in trading is not in the profit of the trade it is in knowing who you are dealing with. If further clarification is required contact your CSI consultant.
