[user5994461]

There are fees from the exchanges and the bookers that are higher than 1%. If you only have 1% hedge, you're losing money on the long run.

[hogFeast]

Edge is always after fees (and, as said twice in the post, you are not betting on an exchange or with a bookie if you are putting down £100k/game...you will be dealing with a broker, your trading cost won't be as high as 1%).