What are odds and how do we calculate them

Every player must know what the connection is between the odds and the chance for a particular team or player to win or lose. The odds display precisely this correlation between the chances and current state, as they show different types of values. In this article, which is part of our guide, we will get you familiarized with odds. Before you begin betting you will learn how odds are determined, what they actually are and, last but not least, how to calculate them correctly.

1. Significance and standard odds

In order to be able to bet, we need odds. In order to win, we need to analyze and check them, prepare them ourselves. The most standard ones are three.

  • 1.1. The first are those for a win where you just need to choose the team that’s going to win. It’s normal for the favorite team to have smaller odds and the outside to have larger ones. For example, Real Madrid has odds of 1.20 for a win against Santander; you bet on the Catalans and they win. You have bet 10£, you win 12 and your clear profit is 2£.
  • 1.2. Another type of very well-known odds is for betting on a handicap. Here you have to chance to bet on the difference in the end result between two teams. You can support the favorite team with a false advantage against the outsider and this way find larger odds. For example, Real Madrid is playing against Santander and you have bet on -2 goals handicap for Real Madrid. Real is winning 3:0 and this way the odds would have been at 2. You have bet €10, you win €20.
  • 1.3. We must not forget about the odds for under and over a number of goals or points in a particular match. For example, if Real and Santander have odds of 1.75 for over 3.5 goals and you bet 10£ and Real wins 3:1, you will win 17.50£.
  • 1.4. The more exotic bets are for more advanced players but they are of great interest to all players of online bookmakers. Accumulators offer odds when you bet on several forecasts in several matches. These accumulators are not easy to guess but they bring a greater profit because odds on separate forecasts are multiplied one by the other and then by the bet amount. You can combine under/over with an end result or handicap.
  • 1.5. Odds of the “Pleasers” type bring you the greatest profit. Here you have to combine bet with handicap against your favorite, where it’s the hardest to win but the money is lot as well.
  • 1.6. Teaser bets are the opposite. Here you can support your team with a handicap and bring yourself a profit with a combination. Here you bet on the safe and stable and the odds aren’t large but the risk is smaller. Read more on the types of bets.
  • 1.7. The so-called “if-bets” combine two odds. The first bet must finish so the second one can take effect. If that happens you can use the profit from your first bet to reinforce the second one.

2. Types of odds

2.1. American odds are pretty interesting, even though they are not easy to interpret. With these odds we will show you how much you can win with €100. If a given team has odds with a + sign in front then you have to bet under €100 in order to win at least €100. If it’s the opposite and the sign is a – you have to bet over €100 in order to win the given amount.

American odds
American odds format

Here are 4 examples:

  1. Team A: -150 odds
  2. Team B: +200 odds
  3. Team C: +600 odds
  4. Team D: +1000 odds

You can see that team A has the smallest odds and is a favorite. If you bet on team A you will have to risk over £100. In this particular case you will have to put down £150 in order to win £100. With the other odds the case is the opposite. Team B will bring you £100 if you bet £50, team C will bring you £100 if you bet £16.67 and team D will bring you £100 if you bet only £10. This is not easy to understand but you get used to it and it doesn’t bother you down the line.

2.2. Fractional odds are quite popular in the United Kingdom.

Example of fractional odds
Fractional odds

For example, you have 4/7 odds for boxer A and 3/2 odds for boxer B. In order to understand this you have to know that fractional odds, which are smaller than 1, mean a favorite and vice versa – the others point towards the outsider. It’s clear that the favorite is boxer A. Once again, the bettor has to put down over €100 in order to win €100, if he is looking for a win from the favorite and vice versa, if he bets on a surprise from the outsider. In this case the player has to risk €7 in order to win €4 from the first bet. If, however, he uses the second one, he can win €3 by betting €2. This is the basic scheme.

2.3 And now we’re up to the standard decimal odds which are mostly used in Europe and Bulgaria. The decimal odds or European odds are those which most Bulgarians are familiar with.

Example of decimal odds
Decimal odds – example

For example, there is a tennis match in which tennis player A has odds of 1.50 and tennis player B has odds of 2.45. Of course, here also tennis player A is the bet on which you have to put down £100 in order to win £100. In this particular case this is the favorite. This way, in order to win £100 you have to put down twice as much since only odds of 2 will being you a doubling of the amount. In reality, by betting £200 on tennis player A, you can expect the mentioned profit of £100. The opposite, for tennis player 2 you can win a clear profit of £145 by putting down £100 or a sum of £245.

2.4. Moneyline
These types of odds are most popular by bookmakers in the United States and you can also hear them being mentioned as “American odds.” With moneyline odds there are two possibilities – the figures can either be positive or negative.

What about the positive and negative Odds?

Positive figures
For example, if a figure is positive then the odds determine the amount that the bettor would win if they put down €100 and this is done if the odds are excelling. Fraction odds that are 4/1, for instance, will be counted as +400 but, on the other hand, fractional odds of 1/4 are not positive.

Negative figures
For example, if a figure is negative then the odds determine the amount that a player has to put down in order to win £100 and this is done if the odds are really lousy. Fractional odds that are 1/4, in this case, will be counted as -400 but, on the contrary, fractional odds of 4/1 are not negative.

Important: There are also Even odds which can either be +100 or -100. In the cases of even odds, a lot of the bookmakers will not show the – sign.

3. How to convert Decimal into American odds and vice versa?

Depending on which part of the world you are at, it might be easier for you to view betting odds in a certain way. With so many converters of odds online, have you ever wondered how you can easily convert decimal odds into American ones and vice versa without using a calculator? Here is your answer.

The most common betting odds are American and Decimal. If you have bet with European bookmakers then you are probably more used to playing with Decimal odds. Before we go into an explanation about how to actually covert Decimal odds into American ones, there is something that we have to make clear first.

The main difference between Decimal and American odds (also known as “odds on a money line” or just “line”) is the American odds are marked with positive as well as negative figures which would mean that there are two formulas for their conversion in larger and smaller from 2.0 decimal odds, identical to positive or negative American odds, respectively.

Positive figures represent the amount which the player will win if he puts down 100 of any currency. The American odds of -150, for example, mean that you must risk £150 so you can win a clear profit of 100£. Negative figure, on the other hand, represent the amount that you must put down in order to win a clear profit of £100. Read out article on “Comparison of American and Decimal odds,” so you can learn more about how to calculate profits with different types of odds.

Option #1: Conversion of Decimal odds into American odds

a. In order to convert Decimal odds of 2.00 or larger, follow the formula below:

American odds = (Decimal – 1) x 100

In order to see how the formula works, here is the calculation of the conversion of odds from 2.50 to 5.40 into American type odds:

Decimal odds = 2.50
American odds = (2.50 – 1) x 100 = 1.50 x 100 = +150

Decimal odds = 5.40
American odds = (5.40 – 1) x 100 = 4.40 x 100 = +440

b. In order to convert Decimal odds smaller than 2.00 into American odds, use the formula below, not the aforementioned one.

American odds = (-100) / (Decimal – 1)

Let us convert odds from 1.50 to 1.80 in American type odds:

Decimal odds = 1.50
American odds = (-100) / (1.50-1) = (-100) / 0.50 = -200

Decimal odds = 1.80
American odds = (-100) / (1.80-1) = (-100) / 0.80 = -125

Option #2: Conversion of American odds into Decimal odds

If you are completely versed in American odds, here are only 2 rules which you have to remember in order to convert whichever American odds into Decimal odds.

For positive American odds, divide the money line by 100 and add 1.

Decimal odds = (American odds / 100) +1

Let us give the odds of +200 and +600 as an example:

American odds = +200
Decimal odds = (200 / 100) + 1 = 2+1 = 3.00

American odds = +600
Decimal odds = (600 / 100) + 1 = 6+1 = 7.00

For negative American odds, divide 100 of American odds, not taking into consideration its negative sign and add the sum to 1.00.

a. Decimal odds = (100 / American odds) + 1

Here is how to convert odds from -130 and -900 in Decimal type odds:

American odds = -130
(100 / 130) + 1 = 0.769 + 1 = 1.769

American odds = -900
(100 / 900) + 1 = 0.111 + 1 = 1.111

4. Analyses of the odds

The next step is to begin analyzing the odds. Sometimes online bookmakers make mistakes and you can take advantage of that. In this case it’s important to look through the match suggestions and without looking at the odds, but just by researching, choose your forecast. This way you are eliminating the chance to be swayed by the odds offered from the site. After that you can make your own example odds and only then compare them with those of the bookmaker.

If you notice a big difference and yet you are sure of your research, try your luck, sometimes even betting on the outsider or choosing some side bet which seems unnaturally high. Even if you don’t success, in the long run, it can bring you serious dividends. This is precisely how the big player bet.

Here you must focus on sites with the largest odds, as well as those with the largest odds for the outsiders. On such sites the small bet can bring you a large profit.

What are odds and how do we calculate them
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