How betting odds work
To best understand the way betting works in sports, you must first understand how betting odds work. Odds are what a person who is betting uses to determine the worth of any wager since the possible payout is calculated based on the combinations of the odds multiplied by your stake.
Odds serve two purposes in sports betting; used in calculating payouts one can win and also reflect the likelihood of an event occurring. The higher the odds, the higher the amount you can win but the lower the potential for the win and vice versa.
Many betting sites support multiple odds format hence the need to understand how they work so that you can use the one you are comfortable with. The format of the odds does not affect in any way the probability or the amount you can win, it is more of a language issue.
This is mainly because betting developed in different parts of the world before online betting brought everything and everyone together on a single platform. They essentially work the same way but through different paths. To understand the odd formats and how they work, here are some details about each format:
This format lists the odds as either a negative or positive figure. The positive figure indicates how much the payout will be on $100, for example, +123 means risking $100 to win $123.
If the odds are negative, it means that is the amount you need to risk to win $100 for instance – 120 means risking $120 to win $100.
Just learn how to move the imaginary decimal place, for example, staking $40 on +120 will go this way; $40 x 1.20 = $48 and $40 staked at -120 is $40/1.2. = $33.33
Also called European or Eur odds format, the odds represent the return you will get for each unit staked. For example betting $20 at odds 1.7 you will win $20 x 1.7= $34.
This is broken down into your stake plus 0.7 x $20 profit. This is a very simple odd format to use since the payout is just the stake by the odds. There is a slow progression to make this a universal standard of odd format.
Also called UK odds are the fractions representing how much you can win on the bet at hand. The first number represents the payout whereas the second number is the stake.
Simplified, this means when you stake $1 in odds of 2/1 you get $2 profit.
To calculate your profit using this method this example can help: betting $50 on 12/6 odds, your profits will be $50 x 12/6 = $100 if your bet wins.
These are offered at Asian bookies, and they function juts like the American format though the odds are based on $1.0 stake hence the use of decimals.
Odds of -1.25 correspond to American odds of -125 and +1.67 correspond to American +167.
The same calculation applies here; positive odds are multiplied by stake while negative odds divide the stake to get the profit.
Hong Kong odds
This format works just like the decimal format though it does not include the stake.
Hong Kong odds of 0.56 correspond to decimal odds of 1.56.
They tell you the profit aspect of your bet for each stake, for example, risking $50 on odds of 2.45 will be $50 x 2.45 to get you a profit of $122.5 and you get back your stake of $50 too.
This format list odds in either a negative or positive format. For negative odds, you are dealing with an underdog whereas for positive odds you are dealing with a favorite.
The positive odds works just like the Hong Kong odd format, but negative odds shows how much you should stake to win $1 for example odds of -0.5 means risking $0.6 to win $1.
Converting odds from one format to another
Most betting sites have online converters to convert from one format to the other easily, however, if you have no access to this, here are tips to converting manually:
Moneyline to decimal
This depends on whether the odds are positive or negative. Converting positive odds is done thus (Moneyline odds+100)/100 = decimal odds. For example + 130 in Moneyline: (130+100)/100 = 2.3
For negative odds ignore the negative sign and do as follows: (Moneyline odds +100)/moneyline odds= decimal odds for example -130: (130+100)/130= 1.77.
Moneyline to fractional
Converting positive odds requires creating a fraction of the number over 100 then simplifying.
For example +200 is 200/100 = 2/1
To convert a negative odd reverse the fraction by putting 100 over the odd for example -150 is 100/150= 2/3
Decimal to Moneyline
It depends on whether the odds are greater than 2.0 or not. First, convert the 2.0 or less. 100/ (decimal odd-1) for example 1.80 is 100/ (1.80-1) = 125. Round it off to whole numbers and add a negative sign.
For those odds over 2.0 it is (decimal odds -1)x100 for example 2.43, (2.43-1)x100 = 143 add a positive sign.
Decimal to fractional
First, create a fraction as follows: (decimal odds -1) /1 then proceeds to multiply both sides by 100 and simplify the fraction for example 1.45, (1.45-1)/ 1 = 0.45/1, multiply by 100 to get 45/100 which is 9/20.
Fractional to Moneyline
There are two ways, when the numerator is greater than the denominator and when it is the opposite situation.
In the first case, it is fractional odds x 100 for example odds of 6/4 is 6/4 x 100 = 150, add a positive sign.
When the denominator is greater, it is 100/fractional odd for example 4/6 is 100/4/6 = 150, add a negative sign.
Fractional to decimal
This conversion is very simple and is done as follows: fractional odds +1 for example 5/4 is 5/4+1 = 2.25