🤑Understanding Betting Odds

In a betting app, odds indicate the probability of a particular outcome and determine how much a bettor can win if their bet is successful. There are three main formats for expressing odds: decimal, fractional, and moneyline. Here's a simple explanation of each type:

1. Decimal Odds

Decimal odds are popular in Europe, Canada, and Australia. They represent the total amount a bettor will receive for a winning bet, including the initial stake.

Calculation:

Decimal odds = Total payout / Stake

Example: If the decimal odds are 2.50 and you bet $10, your total payout will be:

$10 * 2.50 = $25

This includes your original $10 stake, so your profit is:

$25 - $10 = $15

2. Fractional Odds

Fractional odds are common in the UK and Ireland. They represent the profit relative to the stake.

Calculation:

Fractional odds = Profit / Stake

Example: If the fractional odds are 3/1 (read as "three to one"), and you bet $10, your profit will be:

$10 * 3 = $30

Your total payout will be:

$30 (profit) + $10 (stake) = $40

3. Moneyline Odds

Moneyline odds are popular in the United States and are expressed as either positive or negative numbers.

Positive Moneyline Odds: Indicate how much profit you will make on a $100 bet.

Calculation:

Profit = Stake * (Moneyline odds / 100)

Example: If the moneyline odds are +200, and you bet $100, your profit will be:

$100 * (200 / 100) = $200

Your total payout will be:

$200 (profit) + $100 (stake) = $300

Negative Moneyline Odds: Indicate how much you need to bet to make a $100 profit.

Calculation:

Stake = Profit * (100 / Moneyline odds)

Example: If the moneyline odds are -150, you need to bet $150 to make a $100 profit. Your total payout will be:

$100 (profit) + $150 (stake) = $250

Probability Implied by Odds

To understand the implied probability of a given set of odds, you can use the following formulas:

Decimal Odds:

Implied probability = 1 / Decimal odds

Fractional Odds:

Implied probability = Denominator / (Numerator + Denominator)

Moneyline Odds:

• Positive:

  Implied probability = 100 / (Moneyline odds + 100)

• Negative:

  Implied probability = Moneyline odds / (Moneyline odds + 100)

Example Calculations:

Decimal Odds:

• Odds: 2.50

• Implied probability:

  1 / 2.50 = 0.40 or 40%

Fractional Odds:

• Odds: 3/1

• Implied probability:

  1 / (3 + 1) = 1 / 4 = 0.25 or 25%

Positive Moneyline Odds:

• Odds: +200

• Implied probability:

  100 / (200 + 100) = 100 / 300 = 0.333 or 33.3%

Negative Moneyline Odds:

• Odds: -150

• Implied probability:

  150 / (150 + 100) = 150 / 250 = 0.60 or 60%

Understanding these odds and their calculations helps bettors make informed decisions about their bets. The odds reflect the bookmakers' assessment of the likelihood of different outcomes, and they can vary based on various factors, including market demand and the amount of money wagered on each outcome.