How is odds written

Therefore, the total potential return on a stake can be stated as:. For instance, one of the major sports betting websites listed the following fractional odds for futures betting on the team to win the NBA Championship.

Below is a selection of the three teams that had the lowest odds of winning. It can quickly be determined that the Golden State Warriors are the favorites while the odds on Houston and Cleveland winning are longer. Decimal odds aka European odds, digital odds, or continental odds are popular in continental Europe, Australia, New Zealand, and Canada. These are a bit easier to understand and work with. The favorites and underdogs can be spotted instantaneously by looking at the numbers.

For decimal odds, the number represents the total payout, rather than the profit. In other words, your stake is already included in the decimal number no need to add back your stake , which makes its total payout calculation easier.

The total potential return on a stake can be calculated as:. For instance, one of the renowned betting websites priced the candidates to win the U. Presidential Election. Here, we list the decimal odds for the candidates and the biggest long shot among the candidates listed by the bookmaker.

Reviewing the prices that the bookmaker has set for each candidate, it can be determined that according to the bookmaker, the probability of Biden favorite winning the election is higher than that for Trump.

The higher the total payout i. American odds aka moneyline odds or US odds are popular in the United States. In both cases, you get your initial wager back, in addition to the amount won. The difference between the odds for the favorite and the underdog widens as the probability of winning for the favorite increases.

One of the popular betting websites priced the NCAA "Sweet 16" men's basketball game between Duke and Syracuse on March 23, , with the following moneyline odds. In this matchup, there is a big difference between the two odds, indicating a much higher probability of Duke winning the game and advancing to the next round of the NCAA Tournament. If you are planning to enter the betting or the gambling world, it is important to be able to understand and interpret all types of odds well.

Once you have mastered the three popular types of odds fractional, decimal, and American , you can move towards a more detailed read on this topic and find out how the house always wins. Trading Psychology. Portfolio Management. Betting odds are written in terms of as an industry standard. Fortunately, you can preview your potential winnings on each bet before placing it at an online sportsbook.

Read the chart below to get started on reading odds for the following game: Green Bay Packers vs. Green Bay Packers vs.

Point spreads are assigned to each team. Teams that are favorited will be given negative points -1, -3, To win a spread bet of -3, the team you bet on has to win by more than three points. Rockets -5 Rockets minus 5 points at minus odds The Rockets must win the game by more than 5 points for you to win your bet.

A tie is a push, meaning you don't win or lose. Keep in mind for both spreads and totals that if the game ends in a draw for the bet Yankees 4, Red Sox 3 , then you get your bet back but do not win or lose any additional money.

Moneyline boasts one of the most comprehensive assessments of odds in the industry. Based on 34, data points from over 1, individual bets, we found the following sportsbooks offer the best odds on moneyline bets. Based on our evaluation of thousands of data points, we found FOX Bet offers the best odds on spread bets. After collecting over 34, data points, Moneyline. Odds are significant when selecting a sportsbook because they affect your money.

If you choose a sportsbook with poor odds, you will end up wasting money every time you place a bet. Understanding betting odds allows you to pick between good and bad odds. Check out these odds offered by six different sportsbooks on five games from the NFL season. You'll notice each sportsbook offers different odds for each game. If you were betting on these games, you could compare and find the best odds for your desired bets. Using this strategy of line shopping will allow you to save money while betting on games over a long period of time.

If you think the Chicago Bulls are undervalued and have a much higher chance of winning, then betting on them makes sense. Pro tip: If you're new to sports betting we recommend reading our guides on how to read odds , spread bets as well as sports betting for beginners.

In a professional sports matchup, a point spread is given to each team for sports betting purposes. When a negative point spread is given to a team, it means they are favorited to win the game. The various types are represent different formats to present probabilities, which are also used by bookmakers, and one type can be converted into another. Once the implied probability for an outcome is known, decisions can be made regarding whether or not to place a bet or wager.

Although odds require seemingly complicated calculations, the concept is easier to understand once you fully grasp the three types of odds and how to convert the numbers into implied probabilities. There are tools available to make conversions between the three types of odds. Many online betting websites offer an option to display the odds in the preferred format. The table below can help convert odds with pen and paper, for those interested in doing the calculations by hand.

Converting odds to their implied probabilities is perhaps the most interesting part. The general rule for the conversion of any type of odds into an implied probability can be expressed as a formula:. As shown, the formula divides the stake amount wagered by the total payout to get the implied probability of an outcome. Plug the numbers into the formula, which is a simple matter of dividing 8 by 13 in this example, and the implied probability equals The higher the number, the greater the probability of the outcome.

Using an example of decimal odds, a candidate has 2. If so, the implied probability is Therefore, the implied probability equals Remember, odds change as the bets come in, which means probability estimations vary with time. Moreover, the odds displayed by different bookmakers can vary significantly, meaning that the odds displayed by a bookmaker are not always correct.

It is not only important to back winners, but one must do so when the odds accurately reflect the chance of winning. The key is to consider a betting opportunity valuable when the probability assessed for an outcome is higher than the implied probability estimated by the bookmaker. Note that you will also receive back your initial wager if you make a winning bet.

The odds on display never reflect the true probability or chance of an event occurring or not occurring. There is always a profit margin added by the bookmaker in these odds, which means that the payout to the successful punter is always less than what they should have received if the odds had reflected the true chances. The bookmaker needs to estimate the true probability or chance of an outcome correctly in order to set the odds on display in such a way that it profits the bookmaker regardless of an event outcome.

If you notice, the total of these probabilities is This is because the odds on display are not fair odds. The bookie has an edge built into the odds. According to a study published in the Journal of Gambling Studies , the more hands a player wins, the less money they are likely to collect, especially with respect to novice players.

That is because multiple wins are likely to yield small stakes, for which you need to play more, and the more you play, the more likely you will eventually bear the brunt of occasional and substantial losses. Behavioral economics comes into play here. A player continues playing the lottery , either in hopes of a big gain that would eventually offset the losses or the winning streak compels the player to keep playing.

In both cases, it is not rational or statistical reasoning but the emotional high of a win that motivates them to play further. Consider a casino. All of the details—including the game rules, music, controlled lighting effects, alcoholic beverages, and the interior decor—are carefully planned and designed to the house's advantage. The house wants you to stay and continue playing.