Sports Betting Odds Explained
Understanding how odds work will clear up various other aspects you might not understand about betting and how it works, but even if you do, it’s crucial to comprehend how betting works and the information they provide. In most cases, understanding odds might seem very confusing and many published articles do not explain it in a way that allows those new to this aspect to understand the concept and what it all means. In this article, we go into detail about betting odds and explain it in a way that will help you to understand.
Probability, What is it with Odds?
When considered, betting is all about predicting the outcome of an event and how likely that event will take place. Take the roll of a dice for example, as well know it has 6 sides, meaning 6 possible outcomes. These results can be wagered on, but to know much much you could win, you need the odds. The chances of the dice landing on 1 would be 16.67%, which can also be displayed as a fraction 4/7, which is the preferred method in the U.K. but users can also view these percentages or fractions as decimal points.
Calculate Probability with Odds
Once you have the fraction, it’s relatively easy to work out the probability of an event. These fractions will always be shown with a forward slash between 2 numbers (4/2), which is all you need for this calculation. To understand better, we will remove the figures and replace them with A/B. Now, to calculate the probability or percentage, the calculation would look like this: B / (A+B).
Now let's add numbers to get results by using an example such as 9/1. Start with B, which is 1 and place both in the brackets to get 1/(9+1) = 0.10, which adds up to a total 1 of 10 or 10% of this occurring. Another example, 4/1 is what the site provides. To work out the probability, we take the second number and place it before the slash 1/ and add the numbers in their order in brackets after it; 1/(4+1) = 1/5, which is 0.20 or 20%.
Calculate Winnings with Betting Odds
To work out winning opportunities with the odds you simply need to understand that each B values you bet, you will receive an A in addition to your bet value in case of a win. So if the odds are 8/1, and you bet £1.00, you will be able to win £8.00 in addition to your bet. Odds of 5/1, would result in winnings of £5.00 of your bet is £1.00 again.
Working with Decimal Points
All the main betting sites will offer either fraction or decimal odds. In most cases, bettors will be able to choose the method they prefer. Decimal is easier to calculate, but it’s always good to know both. With decimal odds, you can calculate winnings by multiplying the odds with the stake and subtracting the stake value (Stake x Odds) – bet. For example, if the odds are 9.0 and you wager £10.00, your calculation would be (9 x 10) – 10 = 80.00, which means possible winnings of £80.00 are possible above your bet.