It is nearly only possible to stake with odds in the current betting world because odds help punters determine how much they can win. But reading odds could sometimes be a big challenge for new bettors; thus, they need to know how they work.
To help bettors who still struggle to understand how odds work, we held an interview session with a betting expert from BetZillion.com, Tim Harrison. As a result, you will find out how to read betting odds in this guide.
What Is Betting Odds according to Readesh
Bookmakers usually provide odds as to what they believe the likelihood is for an event to happen. As a result, bookmakers set odds to guide how much a punter can win for a selection.
In simple terms, odds determine how much money you can win when you wager. In other words, odds reflect the chances of your choices winning in the eyes of a bookmaker.
Odds work like probability, as bookies set the likelihood of an event ending in a particular team’s win, draw, or loss.
For example, some of the best tennis betting sites can set odds for a match between Novak Djokovic and Rafael Nadal. Sometimes it can be difficult to predict this match. Still, bookmakers set odds in favor of Djokovic or Nadal, depending on the analysis, and by studying the list of the best tennis betting sites, you can choose the office that suits you best.
You then wager on these odds to determine what you can win. But you must know how to read them.
Types of Betting Odds
There are different types of betting odds in the wagering market. Some include American, Fractional, Decimal, Hong Kong, and Malaysian betting odds.
But, the three most popular ones, which you will find out in this guide, are the American, Fractional, and Decimal odds. These odd types are just three different ways of representing the same thing.
Generally used in the US, American odds are also known as the Moneyline odds, where a bookmaker expresses the probability of winning with negative and positive numbers.
The negative number usually represents the favourites, determining the amount you need to wager to win $100.
In contrast, the positive sign indicates the underdogs, determining how much you will win if you wager $100.
Hence, the calculation to determine how much you will win with American odds goes thus:
- for negative numbers: (100/unfavorable odds) * stake amount
- for positive numbers: stake amount/100 * (positive odds)
You will also get back your initial stake if you win the bets in either of the two cases.
For instance, in a game between the Los Angeles Lakers and the Portland Trail Blazers, a bookmaker could set the following Moneyline;\:
- LA Lakers: -165
- Portland Trail Blazers: +325
From the calculation above, you will win $100 if your $165 stake in the LA Lakers wins. When you add your stake amount of $165, your total payout will be $265.
On the other hand, you will win $325 if your $100 stake in the Portland Trail Blazers wins. Adding your initial stake of $100 will give you a total payout of $425.
Fractional Odds are usually referred to as UK odds, typically dominant in Europe.
The odds show the relationship between how much you can win and how much you need to stake. The odds are generally common in horse racing and are displayed in fractions.
When the numerator exceeds the denominator, the odds are backing the underdogs, and the event is less likely to happen. But when the denominator exceeds the numerator, the event is more likely to occur as the odd backs the favourites. As a result, you will see odds like 10/1, 7/2, ⅖, and so on.
The calculation usually goes like this:
- ((numerator/denominator)+1) * stake amount
So when a bookmaker places a 10/1 odds on Norwich City to beat Liverpool. You wager $100; you will have the following calculation:
- ((10/1)+1) * $100
The return will give you $1100, your $1000 profit plus your $100 initial stake.
Thus, your returns will usually include the initial stake.
Decimal odds are more straightforward to calculate, and many top betting sites that offer wagering on MMA allow this type of odds; click here to find more details about UFC betting sites. The odd format displays a potential return, including the stake amount, usually expressed in decimals.
It is easy to get the potential returns for this one, and all you have to do is to multiply your stake by the odds.
The calculation goes thus: Stake * odds = returns. Note that the returns include the initial stake.
It is also relatively straightforward to get who a bookmaker backs as favourites and underdogs by just looking at the numbers. The odds with the highest number will back the underdog, while the lower number backs the choices.
So you could have odds represented like this:
- Real Madrid: 1.20
- Espanyol: 4.05
The odds show that Real Madrid is the favourite while Espanyol is the underdog.
So staking $100 on Real Madrid will give you a potential return of $120, including your initial stake.
In contrast, wagering $100 on Espanyol will give you a possible return of $405, including your stake amount.
The first step in betting is understanding how odds work and how to read them. Betting has gone beyond just staking and needs a proper understanding of how to bet. A platform like Readesh recommends that bettors do their due diligence in research to get the best out of their bets. It will also help to set up the best betting strategies to wager in the betting market. After reading this guide, you must be better positioned to put your next bet.