The betting odds are the foundation of gambling and sports betting. They serve both monetary and informational purposes; they indicate the implied probability that a particular event will occur and the potential sum of money that could be earned should the bettor win. The representation of odds varies across markets and regions, despite the fact that the concept of odds is universal.

The given guide makes a step-by-step breakdown of the three most commonly applied types of betting odds:

• American (Moneyline) Odds
• Decimal (European) Odds
• Fractional Odds (British Odds)

These forms are different and each has its own uniqueness, calculation process and areas of use. The knowledge of how they operate and how to transform one into another is a must for the person interested in betting, whether in a casual or professional manner.

ALSO READ: Don’t Miss Our MLB Match Predictions

American Odds (Moneyline Odds)

Moneyline odds are often referred to as American odds, and those prefer to be employed in the United States. It is a format in which a baseline value is 100 dollars, and it is labelled with a plus (+) or a minus ( ) sign.

Format and Interpretation

• Negative odds ( e.g. -150 ): These are the favorite. The figure indicates the amount that you should bet so that you can bag the $100.
• Positive odds (e.g., +200): They are the underdogs. An amount indicates the amount you win when you place a bet with $100.

Such a system is easy to comprehend when it comes to relative risk and reward. Any number that is negative means lesser risk and lesser reward, and a positive number means higher risk and higher reward.

Example

When a team is listed at 150, it would imply that you needed to bet 150 to gain 100 making your total payout 250. In case another team is given a +200, a bet of $100 would pay off $200 (making a total amount of $300).

Calculation Formulas

Profit Calculation

For negative odds:
Profit = (100 × Stake) / |Odds|

For positive odds:
Profit = (Stake × Odds) / 100

Implied Probability

For negative odds:
Probability = |Odds| / (|Odds| + 100)

For positive odds:
Probability = 100 / (Odds + 100)

Example Table: American Odds

ALSO READ: Don’t Miss Our NBA Game Forecasts

Decimal Odds (European Odds)

The predominant bet type in the world (especially other parts of Europe, Canada, Australia, and New Zealand) is decimal odds. It is probably the most basic and accessible form for a newcomer.

Format and Interpretation

Decimal odds measure the amount of money that the player will get per dollar wagered and not the profit. This means

Total Return = Stake × Decimal Odds

The decimal number considers your bet. To take an example, 2.50 odds would translate to you getting a total of $2.50 against every dollar you wager, which includes the initial $1 in wager and $1.50 in profit.

Example

A decimal odd of 1.80 denotes a small reward (and higher chances), and odds of 3.25 denote a larger reward and fewer chances of winning.

Profit = Stake × (Decimal Odds − 1)
Implied Probability = 1 ÷ Decimal Odds

Example Table: Decimal Odds

Fractional Odds (British Odds)

Traditional form in the United Kingdom and Ireland is fractional odds. They are written as a fraction, i.e., 5/1 (read as “five to one”) or 10/11 (read as “ten to eleven”).

Format and interpretation

The first number is the numerator, and it shows the profit that you will get in case you invest an equivalent number (denominator as the second number). Therefore, 5/1 means that you are winning 5 dollars upon every dollar bet, and 1/5 dollars is a dollar you are winning out of five dollars bet.

In this form, only the profit is reflected and not the initial stake.

Example

5/1 chances: Wager 100 dollars and profit $500: the total amount is $600.

1/5 odds: Occasion bet $500, to win $100 and the total win = $600.

Example Table: Fractional Odds

Odds Conversion Table

A quick reference for converting between the three main odds formats is given in the following table.

Comparing the Odds Formats

Select From Various Odds

Although they all end up with the same basic information, i.e., how much you win and the likelihood of an occurrence, the odds formats all vary in the way they are presented and how convenient they are to the user.

• American odds suit your fast wisdom regarding underdog and favorite in case you feel fine with the basics of the 100 and $100 bets.
• The decimal odds (European Odds) are the easiest to use both by international punters and punters performing multi-leg bets.
• The fractional odds (British Odds) have a history and might still be used quite widely among bookmakers and horse-racing communities in the UK.

The knowledge of all three forms of bets will not only make you better at comparing the betting markets across the world but also will help at improving the long-term betting strategy. Regardless of your chosen form, the ability to read and transpose them is an essential aspect to make you an educated bettor.

Courtesy: https://www.softswiss.com/, https://www.investopedia.com/, https://www.pennlive.com/betting/guides/odds/

Ready to put your knowledge into action?

Join thousands of bettors worldwide and place your bets with Betfume, a trusted and secure betting platform.