Step by Step Guide on How Do Odds Work in Betting
Are you new to betting? If you are a beginner, you should learn how betting odds work before start placing bets on your favorite teams or players. The first thing you need to learn is how to read betting odds. As you make yourself familiar with the odds and their working, you will get more clarity on how to proceed. Betting odds always assist you in figuring out the possibility of an outcome and calculating your winning potential.
Bookmakers use betting odds to predict the likelihood of a particular outcome in a match or event. The odds are represented as decimals or fractions. Some bookmakers also write them using a minus or plus in front of a number.
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Let us discuss how odds work in football betting. Firstly, there are three prediction options available, namely a home victory, an away win, or a draw. A value is assigned to each possible outcome depending on its probability. The same method of approach is employed in different sports.
In addition to presenting probability, betting odds help you create a better idea about your potential winnings from a particular bet. Most of the time, odds are represented in fractional or decimal forms.
When it comes to using betting odds, you need to be aware of some important aspects. As stated above, fractional odds reveal your potential winnings in connection with the stakes of the bookmaker.
Fractional odds refer to two numbers that are split up by a trailing slash. For example; 10/1, 5/1, or 3/1 are all fractional odds. What do you understand when you see a fractional odd?
With the help of fraction odds, you can calculate the potential outcome of a particular event. Let us take the case of the odd 9/1. Let us replace these two numbers with two letters A and B. Then, 9/1 can be represented as A/B. The probability percentage in this situation (9/1) is B/ (A+B). That is, 1/ (9+1). So the final value is 0.10%. What does this value represent? There is 10% of chance that the event will happen.
Let us check 4/1. It can be represented as 1 / (4 + 1). So the final value is 0.20. The chances of this event are 20%. What about a 1/1 odd? You can calculate this fraction as 1 / (1 + 1) which is equivalent to 0.50. So the likelihood of this event is 50%.
Now let us explore what a fraction like 1/4 conveys. The calculation needs to be done using the same method. Then, you get 4 / (4 + 1) which is equivalent to 0.80. So there is a chance of 80% that the event will happen.
This is how fraction odds work. Using this method, bettors can assess the winning probability of their bets. Let us explore how to use betting odds to calculate winnings.
Let us take the fraction 4/1 to explain how to calculate the winnings. The two numbers in the fraction 4/1 can be substituted A/B. You are going to win A for every value of B that you place your bet along with the return of your stake.
If the odd is 9/1, you can assume that you will win $9 for every $1 you bet. What about the case of 1/4? It clearly suggests that you are going to win $1 for every $4 you bet. If the figure is 1/1, you will win $1 for every $1 you bet.
How do decimal odds work? Decimals are highly favored on exchanges. However, renowned online betting platforms also offer betting odds in the decimal format. There is no complexity involved in this format. The decimal representation is easier to figure out as well.
The calculation of decimal odds can be give as below:
Winnings = (odds * stake) – stake.
Let us explain using some examples. If you see a decimal odd 9.0, you can calculate it as (9.0 * $10 stake) – $10 stake. So the final figure is $80. This is the amount you are going to receive as winnings. If the odd is 4.0, you need to calculate the winning by (4.0 * $10 stake) – $10 stake. So, you are likely to win $30. .
This is how odds work in betting. The bottom line is that the betting odds represent the likelihood of an event to occur. The odds help you figure out how much money you are going get if you win your bet.