Struggling to understand how betting odds work? This guide will help you.
There are 3 different kinds of betting odds; Decimal, American and Fractional. American odds are often called Moneyline odds.
HOW DO DECIMAL BETTING ODDS WORK?
Decimal odds are the easiest type of odds to understand.
To calculate your winnings using decimal odds, simply multiply your stake.
Your “Stake” is the amount of money you wish to bet by the decimal number. For example:
If you placed a $100 bet at odds of 2.00, you would simply multiply 10 by 2.00 to calculate your return.
100 x 2.00 = 200.00 = $200 return from your $10 bet ($100 profit)
How about placing a $150 bet at odds of 1.57?
15 x 1.57 = 235.50 = $235.50 return from your $150 bet ($85.50 profit)
HOW DO AMERICAN [MONEYLINE] ODDS WORK?
American odds are calculated based on how much money you have to bet in order to win $100. The odds are always accompanied by either a plus [+] or minus [-] symbol. The symbols determine whether you need to bet more than $100 (-) or less than $100 (+), to win $100.
This may sound confusing at first, but it doesn’t take long to get used to.
Lets jump right into an example of how American odds work. Remember that American odds are all about how much money you have to bet, in order to win $100.
Imagine the odds looked like this for a particular fight…
Fighter A = -150
Fighter B = +200
When working with American odds, you need to remember that the minus [-] symbol always means that you will have to bet more than $100 to win $100. Minus [-] odds are considered the “favourite”. Odds with the plus [+] symbol are considered the “underdogs”.
If you take a look at the odds above, you can see that Fighter A is the favourite at -150. This means that in order to win $100, you would have to bet $150.
Fighter B on the other hands is a +200 underdog. This means that you would only have to bet $50 to win $100. Here are a couple more examples using more challenging odds…
Fighter A = -600
Fighter B = +1000
In this example Fighter A has odds of -600, which means that you would have to bet $500 to win $100. Fighter B on the other hand has odds of +1000, which means you’d only have to bet $10 to win $100.
Working with American odds will take some getting used to and it can be difficult to work out the exact amount of money you will win from your bets at first.
HOW DO FRACTIONAL BETTING ODDS WORK?
Fractional betting odds are favoured in the United Kingdom & Ireland and they’re the most popular type of odds used in Horse Racing. Although they may look confusing at first, they’re actually not that hard to work out. Lets jump right into looking at an example of how Fractional odds work…
If you wanted to bet $50 at odds of 6/4 six to four, this is how you would work it out:
First you have to add the numbers of the fraction together, in this case it would be 6 + 4 = 10. Then divide this number by the second number, in this case 4. 10 divide by 4 = 2.5. Then multiply this number by your stake. 2.5 x 50 = 125. Your return for a $50 bet at odds of 6/4 would be $125.
(6+4 = 10) 10 divided by 4 = 2.5
2.5 x 50(stake)= $125 ($75 profit)
If you get stuck and you’d like some help calculating how betting odds work, please don’t hesitate to get in touch.