If you are into gambling and betting, it is important to understand the odds in betting. Betting odds are very important because they tell you how likely an event is to happen and how much money you will win. However, betting odds appear very complex, confusing and difficult to understand. Since it is of high importance to understand the betting odds in order to see what your potential winning will be, the explanation, step-by-step, will be provided in the following paragraphs.
The first question to ask is what probability is. The ability to predict the outcome of a certain event is what is provided by betting, and if the prediction is correct the money is won. Every single event has a certain number of outcomes. Let’s take an example of rolling a dice. Rolling a dice has six possible outcomes, and betting on one outcome gives you 16.67% chance to win. In other words, what betting odds do is to present how likely or unlikely the event can occur. In the UK, the common thing among bookies is to present this as a fraction, for instance, 4/7, while others provide the probability to be viewed as decimals as well.
CALCULATING PROBABILITY BY USING BETTING ODDS
To calculate how likely or unlikely the event in question is to happen, fractional odds are used. Fractional odds are presented as two numbers separated by a trailing slash, for instance, 10/1.
For example, if the numbers in our example 10/1 are replaced by A/B, the calculation formula is the following: probability (%)= B/(A+B).
Let’s look at the following examples:
- 10/1 is calculated as 1/(10+1) = 0.09 – There is 9% chance to happen
- 1/1 is calculated as 1/(1+1) = 0.50 – There is 50% of chance that the event will happen
By using betting odds you can calculate the winning of your bet.
Let us look at the example of 9/1. If we replace numbers 9 and 1 with letters A and B respectively, for every value of B you bet, you win A plus the return of your own stake.
Let us look at more examples:
1/1: for every £1 we bet, we win £1.
1/4: for every £4 we bet, we win £1.
When it comes to decimals, usually, the betting sites offer the option to view betting odds in decimals. This an alternative to presenting the betting odds in fraction, and some believe that they are easier to understand.
The formula to calculate winnings in decimals is winnings = (odds x stake) – stake
The guide provided previously provides explanation of probability, guide how to calculate betting odds, winnings and using decimals which can make betting rules less complicated.