Last Updated on January 19, 2023 5:37 pm by Erwin Noguera
If you’ve ever placed a bet, you know that understanding betting odds is essential. There are different formats, which can be confusing to decipher. They allow bettors to calculate their potential winnings and determine which bets offer the best value. But what are betting odds, and how do they work? Let’s examine everything you need to know about them.
What are betting odds?
Betting odds determine the probability of a particular outcome in a given sporting event. Sports bookmakers often use the American system, which assigns numerical values to each possible product. For example, if a soccer team is +150 on the money line, that means that if you bet $100 on them and they win, you will get back $150 in total ($50 profit). This system is used to make it easier for bettors to calculate the potential profit of each bet.
The concept of value
Value is an important concept when it comes to sports betting. It essentially refers to how much your expected return would be compared to the amount you risk. If the expected return is more significant than what you have risked, then there is value in that bet. The more critical the positive difference between the risk and the expected return, the more value the bet has, and vice versa. Therefore, when considering different stakes, you should always be aware of the value they offer before deciding which ones to place.
American (Moneyline) betting
The most common type of betting odds used in the USA is American odds, also known as Moneyline odds. American odds are expressed with a “+” or “-” sign in front of the number. A “+” means an underdog, while a “-” means a favorite. In this format, you would need to bet $100 to win $110 on a +110 bet and $180 to win $100 on a -180 bet.
Fractional betting odds
Fractional odds originated in Europe and are often used in horse racing markets. This format expresses the potential profit of your bet compared to the amount wagered; it is written as two numbers separated by a slash (e.g., 1/2 or 5/1). The first number indicates what you will win if your bet is a winner, while the second number represents the amount of money you need to place the bet (the stake). So, for example, if you have a fractional odds of 2/1, that means that, for every $1 bet, you could make a $2 profit if your selection wins.
The decimal odds are popular outside North America and are also known as European or continental odds. They express the total amount paid per unit bet (e.g., 1 or 6.0). To calculate the potential profit from decimal odds, multiply your bet by the decimal number indicated (for example, if you place $10 at a decimal odd of 3.50, your profit will be $35).
Betting odds come in three main formats: American odds/Moneyline, fractional, and decimal odds. Knowing which format you should use depends on where you live. Americans typically use Moneyline, while other countries opt for Fractional or Decimal formats.
Each format has advantages and disadvantages, so it is essential to understand them before placing any bets. Understanding betting odds gives you an edge in betting, as it helps you decide which bets have more value than others based on their respective odds of winning or losing each time. With this knowledge, best of luck to all sports betting fans!