Betting odds are the foundation of any wager, but they can be confusing for beginners. Here’s a simplified guide to understanding them.
1. Types of Odds
- Decimal Odds (e.g., 2.5): Show total returns, including your stake. For example, if you bet $10 at 2.5, your total return is $25 ($10 x 2.5).
- Fractional Odds (e.g., 5/1): Represent the profit relative to your stake. For example, a $10 bet at 5/1 returns $50 profit ($10 x 5).
- Moneyline Odds (+200/-150): Popular in the US, positive numbers show potential profit from a $100 bet, while negative numbers show how much you need to bet to win $100.
2. How to Calculate Payouts
Payout = Stake x Odds
For fractional odds: Payout = Stake x (Numerator/Denominator) + Stake.
For example, a $20 bet at 3/2 odds would return $50 ($20 x 3/2 + $20).
3. Implied Probability
Odds reflect the likelihood of an outcome. To calculate the implied probability:
- Decimal odds: (1 / Decimal Odds) x 100
- Fractional odds: Denominator / (Numerator + Denominator) x 100
By understanding odds, you’ll make more informed betting decisions and improve your chances of success.
