These days betting is an easier thing to do, thanks to new software which makes it less risky. What one should learn before placing a bet is to calculate odds. In betting odds means the ratio between the amounts staked by parties to a bet, for example, odds of 5 to 1 means the bookmaker stakes five times the amount staked by the bettor.
Fractional odds are two numbers separated by a slash, for example 4/1, which lets you calculate the probability of a given event to happen. For example, 1/1 is calculated as 1/(1+1)=0.5, which means there is a 50% possibility of that event to happen. And these betting odds lets you calculate the amount of money you will win upon making a bet. 1/1 for every $1 you will win $1.
Many softwares have decimals, most of the betting sites view betting odds in decimal format, which is anyway easier to work out than fractions. The winning amount is calculated as: odds*stake- stake. For example: 5.0 can be calculated as:
(5.0*$10 stake)- $10 stakes= $40 winnings.
To quickly get your head around the winnings playing these odds, one can always rely to softwares like bet calculator, Sports betting apps, the Scores etc. To make it more clear let’s look at this example: If you are supporting Liverpool to beat Arsenal 2-0, you may see the odds of that score at 4.0 or 3/1.
You can in no time calculate your winnings if your stake was $10:
- 4.0 will be 4.0*$10 stake- $10= $30 winnings.
- 3/1 for every $1 you bet, you win $3-$30 winnings
- And your original stake will be returned back to you as well.
There has been a trend inclined towards decimal odds, although things aren’t like one way better than the other. Usually decimal odds are easier to understand and hence attracts more people to make bets. Fractional odds represent winnings without including the returned stake whereas the decimal odds do include them. The popularity of decimal odds grew with the growing usage of betting exchanges.
The odds doesn’t show what’s true probability of event occurring or not occurring, there is always a margin or profit margin added to the odds that are displayed by the bookmaker, which actually means that the winning amount given to the punter is always less than what he should have received had the odds displayed true probability.
The bookmaker estimates the true probability to be displayed as odds in such a way that proves to be advantageous to the bookmark regardless of the event occurring or not occurring.
The bookmaker’s potential profit increases if he accepts the bet in the right proportion. The bookie always has an edge of profit into the odds irrespective of an event occurring or not occurring. The more you play, the more likely you will have substantial losses, the basic principle of behavioral economics. In the hopes of big gain, one ignores the losses, and keeps playing, which is not rational in any way, but the hope of winning keeps you motivated to play further.
Furthermore, the beginners find it more difficult to resist when they are having continuous small wins, which in fact can be erased by the loss which is not frequent but big. That’s why it is said that the house always wins, although the advantage varies with the game, there’s always a margin profit that is set aside while displaying the odds by the house.
There are now various tools available that do the conversions between certain formats (decimal, fraction, Moneyline), also there are websites such as draftkings casinos that have options to display the odds in the format of your choice. There are even ways that tell you when an opportunity is valuable enough to bet, where the outcome is higher than the implied probability(displayed by odds) by the bookie or house(in case one is playing in a casino).
Conclusion
If one is a beginner or wants to explore the world of betting, one should work one’s way around understanding all formats of odds. Although in today’s age and time you can view odds in your preferred format, still it is the first step into placing a bet and making one’s way into this arena. Moreover, there are so many apps operating with the only purpose of making things easier for you while making a bet according to the displayed odds in a given format.