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Decimal odds betting

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An imbalanced book may arise since there is no way for a bookmaker to know the true probabilities for the outcome of competitions left to human effort or to predict the bets that will be attracted from others by fixed odds compiled on the basis personal view and knowledge. With the advent of Internet and bet exchange betting, the possibility of fixed-odds arbitrage actions and Dutch books against bookmakers and exchanges has expanded significantly. Betting exchanges in particular act like a stock exchange , allowing the odds to be set in the course of trading between individual bettors, usually leading to quoted odds that are reasonably close to the "true odds.

In making a bet where the expected value is positive, one is said to be getting "the best of it". However, if someone offered odds of 10 to 1 that a card chosen at random from a regular 52 card deck would be the ace of spades, one would be getting "the worst of it" because the chance is only 1 in 52 that the ace will be chosen.

Player A wins if the dice add up to 12, of which there is only one possible case. Player B wins if the dice fall in any other combination, of which there are 35 possibilities. When making a bet in which one must put more at risk than one can win, one is laying the odds. Rational bettors will do so only if the actual chances of an adverse outcome are low enough that the expected outcome even after deduction of taxes and any transaction costs is favorable to the person placing the bet.

Laying odds is reflected in the colloquial expression "[I would] dollars to doughnuts " — with which the speaker is expressing a willingness to risk losing something of value in exchange for something worthless, because winning that bet is a certainty. Bookmakers sell bets based on the odds of a specific outcome, but lay betting allows the bettor in some English-speaking countries, the "punter" to reverse roles with the bookmaker, using odds to sell the opposite outcome to the bookmaker.

In this context, "lay" is used in the sense of "layman", i. Favoured by bookmakers in the United Kingdom and Ireland and common in horse racing , fractional odds quote the net total that will be paid out to the winning bettor relative to the stake. The term "fractional odds" is something of a misnomer, especially when visually reinforced by using a slash as opposed to, e. This fraction may be derived by subtracting 1 from the reciprocal of the chances of winning; for any odds longer than "even money," this fraction will be an improper one.

Not all fractional odds are traditionally read using the lowest common denominator. Perhaps most unusual is that odds of are read as "one-hundred-to-thirty". Fractional odds are also known as British odds, UK odds, [5] or, in that country, traditional odds. Favoured in Continental Europe , Australia , New Zealand and Canada , decimal odds differ from fractional odds by taking into account that the bettor must first part with their stake to make a bet; the figure quoted, therefore, is the winning amount that would be paid out to the bettor.

It is considered to be ideal for parlay betting because the odds to be paid out are simply the product of the odds for each outcome wagered on. Decimal odds are also known as European odds , digital odds or continental odds and tend to be favoured by betting exchanges because they are the easiest to work with for trading, in this case the purchase and sale of upside and downside risk. Moneyline odds are favoured by United States bookmakers and as such are sometimes called American Odds.

Moneyline refers to odds on the straight-up outcome of a game with no consideration to a point spread. To convert fractional odds to decimal, take the fractional number, convert it to decimal by doing the division, and then add 1. For example, the 4-to-1 fractional odds shown above is the same as 5 in decimal odds, while 1-to-4 would be quoted as 1. The method for converting moneyline to decimal odds depends on whether the moneyline value is positive or negative. If the moneyline is positive, it is divided by and add 1.

If the moneyline is negative, is divided by the absolute moneyline amount the minus signed is removed , and then 1 is added. From Wikipedia, the free encyclopedia. This article has multiple issues. Below is a selection of the three teams that had the lowest odds against winning. 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. Donald Trump: 4. The higher the total payout i. 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.

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. Trading Psychology. Warren Buffett.

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So the calculation for decimal odds of 1. To convert American odds to decimals, you simply carry out the reverse calculations. So for positive odds, you divide by and plus 1, and for negative US odds, you disregard the negative sign, divide by and then add 1.

The implied probability provides the simplest reflection of how likely a bookie believes a particular event is to happen. The calculation for converting odds to a percentage depends on the odds format. For fractional odds you use the following equation:.

And finally, to work out the implied probability from US odds you do the following:. Here are a few examples of converted odds to see how different formats compare. Danielle has six years of experience writing on a wide variety of topics, including online casino, sports betting and tourism. Alan has three years of writing experience and an MA in English Literature, with bylines at These Football Times and 90Min as well as extensive coverage of all things sports betting and online casino.

Odds Converter. Implied Probability. How it works. Examples table. Yes No. Odds Format: Fractionals Decimals American. The people behind this page Compare. Danielle Clark. Alan Draper-Lewis. About this page. Last updated:. Page rated! Bet Now. Buying Points in Sports Betting Read now. How would you rate this article? Something went wrong. Please try again. Action Newsletter. The top betting news and picks for all the big games delivered directly to your inbox daily.

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