Types of Odds
Odds are the cornerstone of betting and without understanding them there will be no winning bettors. The explaination of odds is quite simply the price calculated exactly how much you will receive if your bet wins. In general speaking the odds do not alter no matter how much or little you are willing to stake on a selection. There are two most commonly used odds – fractional and decimal. There is no monetary distinction between the two and no reason to choose one over another. They are just different ways to present the same thing.
Fractional odds are displayed as 10/1 or 7/2. There are a couple of ways to make an effort and comprehend them but the most simple way is “how much you win”/”how much you stake”. For instance, if you stake £1 at 10/1 you will win £10 (do not forget that is your profit, you will get 1 pound-the stake back too!). In case you stake £2 at 7/2 then you will win £7 and get your £2 stake back.
Frequently you see odds which appear to be the opposite way round for example 1/10 or 2/7. These are referred to as ‘Odds-On’ selections and you should stake £7 to win £2. Moreover, you will see odds alike in case there is a strong and overshadowing favourite to win. For instance, when Chelsea faces Ipswich in the FA Cup, the Hosts of London were as short as 1/10 to win the game.
Most online betting sites will show you your potential profits on the betslip but it is essential to compehend the odds for the sake of getting value. If you want to be a really winning bettor, you have to back winners and do so when the price precisely reflects the chance of winning. It’s not hard to predict that Chelsea would beat Ipswich 9 in 10 matches played but are you apt to staking £100 to make a profit of just £10?
To calculate your potential returns from fractional odds:
((Stake /denominator) x numerator ) + stake
For example, £10 staked at 7/2:
((£10/2) x 7) + £10 = £45
It is essential to know the approximate probability of each single fraction. Unless, you will meet serious obstacles in finding value in the odds offered by the bookmakers. If you want to calculate any fractional odd in percentage probability quickly, there is an easy to apply formula:
Implied probability = denominator / (denominator + numerator)
So if you want to back a selection 2/10 for a win of Juventus against Pescara, the probability of succes of your stake will be:
2/10 = 10 / (10+2) = 0,83 = 83,33 %
Every member of our team is on the opinion that fractional odds are too confusing and elaborate and we still cannot believe that there bettors who prefers using them. It is undoubtedly that decimal odds are far easier to understand. If we promptly ask you to answer which odd is bigger, 7/4 or 9/5? It will take a while until you answer, right? But if we asked you the same question with decimal odds – 1.50 or 1.80? It’s very easy one to answer. So calculating potential profits from decimal odds (which are written as 1.80 or 4.50) is so much easier to understand. Let’s see the example below:
Stake x Odds
For example, £5 staked at 1.5:
£5 x 1.5 = £7.5( 5 pound stake is included, you win netto 2.5 pounds)
It is essential to know that your stake is included in your returns and it supports for a far easier calculation. Moreover, decimal odds of 2.0 shows even money (1/1) and anything less than 2.0 is an odds on bet. For instance 1.50 will see you win half your stake and to continue the example of Chelsea from above, Chelsea were priced at 1.10 to beat Ipswich Town.
It is impossible to see odds of less than 1.00 but it often happens to see 1.01 or 1.05. These types of odds are mostly given to a very strong favourite leading against an obviuos underdog with 15 minutes left to play. It is unlikely to see them before the kick-off but in case this happens it will probably concern a football match from the first round of The Cup Tournament, especially when a first division team is facing a third or fourth division (Barcelona – Badajoz for instance, or Bayern – Duisburg), of course there are exceptions. You will need to be insanely brave and irrational to back selections at 1.01. You’d have to be quite convinced that backing a potential win for the favourite 100 times would be successful 100 times in order to be in profit , although many late goals are scored and sometimes wrong referees’ decisions could cost you the lucrative amount you have always dreamed of.
In case you need to convert fractional odds into decimal odds, it’s so easy. First, divide the fractions and add one (the one represents your stake). For instance, to convert 7/2 into decimal odds, you would divide 7 by 2 and add 1, which gives you 4.5. Please, note that decimal odds are just simple numbers. It is quite obvious that it is not hard to distinguish which decimal is bigger that the other. But if you really want to understand and to use them in your favour, you should be capable of converting them into their percentage probability. Thus, you will have a priceless advantage wheh trying to find value in the tough battle against the bookies’. If you want to calculate any decimal odd in percentage probability quickly, there is an easy to apply formula:
Implied probability = 1 / Decimal Odds
For example, we are backing a win of Arsenal against Crystal Palace at 1.65. So, the probability of success of your stake will be:
1 / 1.65 = 0,606 = 60,60 %
The last part of this article explains us how to convert probabilities in either fractional or decimal odds. After carefully reading all the sections included, you will broaden your knowledge in the betting market and gain priceless advantage among the bettor’s society by analyzing the odds offered by the bookies in deeper and completely different way. Please, take into consideration that barely 5 % of all punters are really successfull. Our main priority is to facilitate you to penetrate the ‘top 5’ club. There are two easy to apply formulas for converting probabilities of outcome in fractional or decimal odds:
So, we had been provided with information that Roma has 25% to beat Barcelona. But how to convert this into fractional odd ?
Fractional odd = (100 / implied probability ) – 1
(100 / 25 ) – 1 = 3 (‘3’ in this case is used as fractional odd = 3 / 1).
Converting probability percentage in decimal odd is far more easier. Let’s use the same example :
Decimal odd = 100 / implied probability
100 / 25 = 4
Implied probability of 25% would return decimal odd of 4.00.