Learn all about betting odds in sports gambling. Find out how to compare odds and how they determine your winnings.
Why Do You Need to Understand Betting Odds?: Betting Odds Explained
If you are new to the world of sports betting, then it is possible you don’t know how important odds are, how they work and how they are key indicators that determine the success of your bet. You may also be unaware of the fact that odds are displayed in three different formats. However complex this part of sports betting seems to you, we are here to explain it and teach you how you can use it to your advantage.
What are Odds?
First thing first, odds represent the value of the bet you are about to place and if you are willing to make money from a bet, value is something you should be concerned with. Also, you need to know odds play a key role in how bookies make money. So those decimals you see listed on sportsbook website are essentially used to calculate potential returns of each bet placed.
There are three types of odds which are odds on, odds even and odds-against. A bet placed on an odds on is a low-risk bet as you are more likely to win than lose. However, your potential return is lower than your initial stake. Bets placed on odds against are high risk (they are less likely to win), but the potential return is much more than the stake. In the case of odds even, the potential return is the same as the value of the stake. In essence, an odds even bet doubles your original stake. A huge number of gamblers prefer to wager on odds because they are more likely to yield a return. For obvious reasons, we also recommend odds on bets for beginners who don’t have much experience with sports betting.
Types of Odds Format
Now that we have covered the types of odds, it is important to also know how these odds are presented. Majority of online bookmakers allow punters to choose how their odds are displayed, however, the standard format you are likely to see is the decimals. But apart from decimals, odds are displayed in fractions and Moneyline as well.
The decimal format is the most popular and also the simplest among the others. Decimal odds are displayed in two decimal points and they show the exact value of the potential return. It is very easy to calculate rewards with this format. Let’s use an example where a 100 Rand stake is placed at the odds of 1.50. If 100 is multiplied by 1.50, you get a 150 potential return. Note that the potential return includes the original stake.
Although quite uncommon on online sportsbooks, fractional odds format is still being used by in bookies outlets and horse racing tracks. It is not so easy to calculate potential returns by looking at a fractional odd, but the math is not that complicated. An odds on in a fractional format looks like this: 1/ 2 (one to two), while and even odd is expressed as 1/1.
Moneyline odds are the most complicated of the three formats and they are mostly used by American bookies. This format of odds is displayed with a negative sign (odds against) or positive (odds on) sign before them. The positive money line odds show how much will be added to your wager if the bet is won. A 100 Rand placed at +100 odd means your potential return is 200 Rand.
How to Calculate Potential Returns with Odds
The formula for calculating potential return using decimal odds: Stake x Odds = Potential return.
To calculate potential profit using the decimal odds: Stake X Odds – 1 = Potential Profit.
To calculate potential return using fractional odd: Stake X (a/b) = Potential return.
To calculate potential profit using a positive Moneyline: Stake X (odds/100) = Potential Profit
To calculate potential profit using a negative Moneyline : Stake / (odds/100)= Potential Profit