Meaning of the odds in betting. How do they work

 

In this post I am going to talk to you about how to interpret the odds in betting. You just have to apply a little math to understand them.

 

If you want to make sports bets, the first thing you should do is know how the odds work in betting, since it is vitally important to understand how the event you have bet on is likely to happen and what your profit may be.

 

It must be made clear that by understanding how sports betting works, you are not more likely to win. There is always a component of luck. Also, do not forget that in the event that you gamble, you must do so responsibly and never gamble large amounts of money.

 

Remember that it is just a hobby and that no one gets rich from it.

 

Index of contents

 

• 1 What is a probability?

 

• 2 Using betting odds to calculate probability

 

• 3 How to calculate the money that can be won if you get it right?

 

• 4 And the bets in decimals?

 

• 5 Decimal Odds vs Fractional Odds

 

 

What is a probability?

 

Placing a bet is neither more nor less than predicting the outcome of a certain event, such as the outcome of a match or guessing who will win. If your prediction is correct, you win the bet.

 

For any given event, there are a certain number of outcomes. This is what is called an event. For example, roll a die. If someone rolls a die, there are six possible outcomes. Therefore, if you bet that the person rolls a "one", there is a 1/6 chance of that happening, or what is the same you have 16.67% chance of winning.

 

What is done in bookmakers is to present the probability that the event is going to occur as a fraction or what is more common, in decimal form.

 

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Using betting odds to calculate probability

 

Whenever you see two numbers separated by a forward slash, such as 10/1, this is known as fractional odds.

 

From here, the A / B probability can be calculated as a percentage as with the following formula:

 

(%)=B/(A+B)

 

For example:

 

• 9/1 is calculated as 1 / (9 + 1) = 0.10, which means there is a 10% chance that the event will occur

 

• 4/1 is calculated as 1 / (4 + 1) = 0.20, which means that there is a 20% probability that the event will occur.

 

• 1/1 is calculated as 1 / (1 + 1) = 0.50, that is, there is a 50% probability that the event will occur.

 

• 1/4 is calculated as 4 / (4 + 1) = 0.80, or what is the same, an 80% probability that the event will happen.

 

 

Given a fraction, we can now say how likely it is that what we are going to bet will happen. Now we are going to find out how to calculate the money that can be won using the betting odds.

 

Another type of probability is the conditional probability.

 

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How to calculate the money that can be won if you get it right?

 

Betting odds allow you to calculate how much money you can win if you hit the bet.

 

At an A / B bet probability, for every value of B you bet, you will win A, plus the value you have wagered.

 

For example:

 

• In 9/1, for every euro you bet, you will win 9

 

• In 4/1, for every euro you bet, you will win 4

 

• In 1/1, you will stay the same, since for every euro you bet, you will win another

 

• In 1/4, for every 4 euro you bet, you will win 1

 

 

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And the bets in decimals?

 

Decimals are much more common in betting. They are an alternative to viewing the betting odds in fraction format and are easier to calculate:

 

Winnings = Probability x bet - bet

 

For example:

 

If we bet 10 euros:

 

• At 9.0 the gains are 9.0 × 10-10 = 80 euros

 

• In 2.5 the gains are 2.5 × 10-10 = 15 euros

 

• At 1.25 the earnings are 1.25 × 10-10 = 2.5 euros

 

 

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Decimal Odds vs Fractional Odds

 

In reality, one is not better than the other, but there is certainly an emerging trend towards decimal probabilities. Before, fractional probabilities were used, especially at racetracks and on the street.

 

There are two key differences. Decimal probabilities are generally easier to understand. Based on this, there is a movement to attract more people to gambling by making it more accessible to the average public. Ten years ago, all probabilities would be shown as fractional probabilities. Now almost all of them are in decimals.

 

The second difference between the formats is that the fractional odds only represent winnings, and do not include the returned bet compared to the decimals that do include the bet.

 

The transition from fractional to decimal odds began with the growing popularity of online bookmakers. For the probabilities to change slightly, it is really difficult to marginally increase or decrease the probability, without creating large fractions that are difficult for the customer to calculate.

 

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