Betting Odds: Types and Calculations
If you want to place a bet on a sporting event between teams A and B, the first thing you should be aware of is the amount you could win if you correctly predicted the outcome. The odds are the very first thing a bookmaker will reveal to you. These are numbers that indicate the amount you could get if you succeed in winning the wager. However, although they're all the same amount, you will not get a uniform number across different sportsbooks since each one adopts a certain method of specifying the odds. This article describes the different types of betting odds specifications and the methods to calculate the potential gains for each one.
There are three different types of odds specifications, they are: Decimal Odds , also known as European Odds, Fractional odds, also known as UK odds, and American odds. Because they accurately represent the scenario, Decimal forms are considered as the most common method of specification. The objective of odds specification, in whatever form they're given is to link amount bets by a player on winning to the amount that he or she wins. To accomplish this, you need to understand three terms: stakes, pay-outs, and winnings. Stakes are the amount that is bet. The term "winnings" refers to the winning amount when a bet is placed. Pay-outs, on other hand, refer to the sum of money that is payed after a bet been placed. Naturally, payouts are the result of winnings plus stakes. While these terms may appear to be insignificant, they are actually the at the heart of odds calculations.
It is also important to know three other terms related to the strengths of match teams: they are Odds, the Odds On, and the Odds against. Evens refer to when both teams are equal in strength. If there aren't any commissions, you could bet $1 to bet $1 and win. Odds-on are the probability of winning for the favorite , and in this instance, winnings are lower than stakes. Odds-against refers to the odds of the underdog. In this instance it is more likely that winnings will be greater than stakes. For evens odds (the most common kind of betting on sports), odds are assigned to both sides. They'll be 1.90 in decimal odds, 9.10 in fraction and -111 American odds. Each of these odds refer to the same thing, "bet one dollar for 90 cents". If there was no commission or if the betting was just between friends, these odds would have been 2.0 1/1, 1.0, and, 100, respectively, for the three types of odds. They refer to "bet one dollar to win one dollar".
Decimal Odds (European)
These are simply factors that indicate how-many-times-the-stake will the pay-out be. For instance odds of 2.50 means that the payout is two and half times stake. That is, for every dollar wagered, the payout will be $2.50.
Pay-out = Stake * Decimal Odds
Win = stake * (Decimal Odds-1)
Fractional Odds (UK)
These fractions indicate that a stake of equal or greater than the numerator will yield a winning sum equivalent to the sum of its numerator. If you stake 11 units and get 10 units, the odds are that you will win 10 units. For every $11 wagered you will win $10.
Win = Stake * Fraction Odds
Pay-out = Stake (Fraction Odds + 1)
American Odds (US)
American odds are represented with numbers that are greater than 100, preceded by the "+" or "+" sign. These symbols are not mathematical symbols; they are simply symbols used to indicate whether your winnings are greater than or less than your stakes. The positive sign can be used to signify an underdog whose winnings exceed stakes or an odds-against wager and the negative sign is for favorites and odds-on betting. The two odds have totally different definitions, and therefore make use of calculations that aren't related.
Negative odds show how much to wager to win $100. If you have odds of -110, it means that $100 wagers are required to win $100.
Winning = 100/negative American Odds
Pay-out = stake * (100/negative American Odds+ 1)
Positive odds represent how much winnings will be when $100 are bet. For instance odds of +110 means that $110 is the prize, when $100 are wagered.
Winning = stake + positive American Odds/100
Pay-out = Stake * (positive American Odds/100 + 1)
These odds are notable for their features.
Decimal odds are always higher than 1.0, since "1" represents the stake.
American odds are always greater than or equal 100 (remember that the letters + and – are not mathematical numbers).
Fractional and American odds are indicative of winnings as are decimal odds, whereas fractional odds show the payouts.
If you win exactly the same amount of money as your stake, then this is known as even odds. Therefore, even odds are represented by 2.0 in decimal, by 1/1 in fractional odds and by 100 in US odds(-100 and +100 are identical).
The decimal odds for odds-on are those where the winnings are greater than stakes. This is typically the scenario when a favorite team has many wins. They are distinguished in fraction odds because their numerator (winnings) is lower than the denominator. It is also evident in US odds by the negative odds.
If there is an odds-against scenario, in which winnings exceed stakes, then the decimal odds will be higher than 2.0. The numerator in fraction odds will be greater than the denominator. These are the US odds.