When you are betting on sports, one of the most important things to understand is how odds work. Odds tell you how likely it is that an event will happen. They are expressed as a ratio and can be confusing to beginners. In this blog post, we will break down how odds work and explain them in easy-to-understand terms.
Let’s get started.
How Fractional Odds Work?
The most basic form of betting odds are fractional odds. Fractional odds show you what you will win about your stake. For example, if you bet $100 on a team with fractional odds of ½, you will win $200. In this instance, your stake is returned to you and your winnings. So in total, you would receive $300 back ($200 + $100).
It’s important to note that with fractional odds, the bigger the number on the left (the numerator), the higher the chance of that selection winning. For example, in our first instance, where we had fractional odds of ½, the bookmakers believe there is a 50% chance of this team winning.
Conversely, the lower the number on the left (the denominator), the higher the chance of losing that selection. So, if we had fractional odds of ¼, this would mean that there is a 75% chance of that team losing.
How Cardinals Odds Work?
How Decimal Odds Work?
Decimal odds are pretty easy to understand. They are presented as a decimal number representing the total amount of money you will win if you bet correctly. For example, if the decimal odds are displayed as “odds of 11”, you will receive 11 dollars for every dollar you bet. So, if you bet 100 dollars and win, you will receive 1100 dollars in total.
The main advantage of decimal odds is that they are very easy to understand and calculate. However, they don’t take into account the vigorish charged by sportsbooks. This is why many professional bettors prefer to use fractional or American odds.
How Money Line Odds Work?
The most popular type of betting odds is money line odds. These are the simplest odds and express how much you will win for every dollar you bet. So, if the money line is +100, this means that for every $100 you bet, you will win $100 in return. If the money line is -200, this means that for every $200 you bet, you will win $100 in return.
Generally speaking, the favourite will have negative money line odds, and the underdog will have positive money line odds. This is because bookmakers set lines so that they make a profit regardless of who wins the game. To do this, they need to encourage people to bet on both sides by making the favourite’s odds less attractive and the underdog’s odds more attractive.
Are Negative or Positive Odds Better?
The answer to this question is somewhat subjective and depends on your betting goals. If you are looking to make a profit, then positive odds are better because they give you the chance to win more money. On the other hand, negative odds represent the amount of money you would need to bet to win $100. So, if you are looking just to have some fun and maybe break even, then negative odds may be a better option.
It is essential to understand that odds are not always an accurate reflection of how likely it is for an event to happen. They are simply a way for bookmakers to balance out the bets they take in and ensure that they make a profit no matter the event’s outcome.
