When people start placing bets, they want to know how betting odds are calculated. It is important to understand it because it will let you know how likely an outcome is. It also helps you understand what your winnings will be. However, it can be confusing if you don’t know how odds are calculated.
You can start to understand betting online odds by understanding what the numbers mean. For instance, if the odds are three to one, the bookie puts up three shares for every one share you wager. This is the basis for how the odds are calculated.
Understanding Probability
Probability is basically the likelihood of an outcome occurring. For any event, there are a certain number of possible outcomes. For example, if you roll a dice, there are six possible outcomes. This means that the probability of rolling a six is one in six. If you bet that a six will occur, there is a 16.67% chance that it will come out your way because 1 in 6 is 16.67%. In the UK, most bookies will say it as a fraction, such as ⅙.
You can calculate probability by taking the fractional odds and coming up with a percentage. You can use a formula where you replace the numbers with variables. The formula is Probability = B/(A+B). For example, take a look at the following:
● 4 / 1 can be calculated as 1 / (4 + 1) = 0.20 (20%)
● 1 / 1 can be calculated as 1 / (1 + 1) = 0.50 (50%)
You can use this formula to calculate the probability of any bets you want to make. You can then take the probability and calculate how much money you can win.
How to Use Betting Odds to Calculate How Much You Can Win
Once you know how to calculate the betting odds, you can use this information to figure out how much money you can win. Take a look at the two examples from above:
● 4 / 1: you will substitute pounds in, so for every one pound you bet, you will win 4.
● 1 / 1: you can do the same. For every one pound you bet, you will win one.
Calculate Your Winnings If They Show Decimals
Many exchanges commonly use decimals to show you the betting odds. It is easy to figure out what you can win, as long as you understand this formula. You want to do the following: your winnings = (odds * stake) – stake, where your stake is the amount you wager. Take a look at the following:
● 9.0 is calculated as (9.0 * 10 pounds) – 10 pounds = 80 pounds. You will win 80 pounds if you wager 10 pounds.
● 4.0 would be (4.0 * 10 pounds) – 10 pounds = 30 pounds, so you would win 30 pounds on a 10 pound wager.
The Difference Between Decimal Odds and Fractional Odds
The trend is moving toward decimal odds, but there isn’t much difference between them. Fractional odds have been used for a long time, but decimal odds are easier for people to understand. As a result, bookies are starting to use them more. However, as long as you know the formula, you can determine your winnings. When you look at them, you can easily predict what you might win. One of the major differences is that decimal odds include your returned stake, whereas fractional odds only include your winnings. For example, look at the following:
● 10 pounds: fractional: 4 / 1 = 40 pounds
● 10 pounds: decimal: 4.0 = (4.0 * 10) – 10 = 30 pounds
The primary difference is that when you calculate your winnings, the fractional bet shows you the amount you win including your original bet.
Final Words
Understanding how to calculate betting odds will help you know what you can win when you are placing a bet. This information makes betting more fun and more predictable. People want to understand betting so that they can bring a bit of predictability to the process. Once you understand how to calculate your odds of winning, you can enjoy betting.
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