How do betting odds work?

In order to understand sports betting better, you first need to understand how betting odds work. Odds decide whether your bet is worth making or not. The payout of your bet is calculated using a combination of your stake and relevant odds.

In this blog post, we will understand these odds in detail. For more detailed information about odds, you need to refer to your bookmaker, provides the best bookmakers.

What are the odds?

in terms of betting, odds serve two different purposes. one, they are used for calculation of payouts of winning bets. Every time you place a bet, your odds would always be different, they put a significant effect on much amount you will win. The higher they are, the better will be your earnings.

Two, odds tells us the probability of any particular outcome occurring. as the likelihood of an outcome increases, so does the impact on your win increases. this makes sense since you always expect to win less when the betting on a particular item is likely.

Different Odds Formats

As we have already seen, the basic principles behind betting odds are very simple. however, they become a bit complex when you realise that there are three different formats of odds, they are –

  • Decimal Odds
  • Fractional Odds
  • American Odds

At some point in your betting journey, you are sure to come across all of these formats, which is why it is important to have a look at each one of these.

American or Moneyline Odds

American Odds are also called Moneyline odds, and this is one format which is very common in the US. These odds can be represented as either positive or negative numbers. A positive number shows how much correct a bet is, while a negative bet means, how much you would need to stake to win that amount.

Decimal Odds

Decimal odds are mostly associated with countries like Canada, Australia and mainland Europe. However, today they have become pretty much standard odds with the most online bookmakers, with an exception of some American betting sites. This is because they are the easiest of all the three formats, in this format odds are expressed as positive numbers.

Fractional Odds

Fractional Odds are traditional odds in the United States, however, there are two decimal odds are slowly taking over. The major reason is, calculating profits and payouts is a little bit difficult.

Converting Odds Formats

Well, if you wish to convert one format to another, there are numerous format converters available online. You can pick the one you prefer and make sure you get a smooth experience.