How do odds work in betting? - Sports | NTV

How do odds work in betting?

By Growth Box Ventures

Thursday November 21, 2019

betting 

Many people believe that gambling is purely based on luck, but the truth is that there is mathematics involved in every win. This is what many gamblers refer to as the betting odds, and it will give you an idea about the event that is to happen. Betting odds are also used to determine how much money a gambler can take home. It is helpful especially if you wanted to earn a huge profit from a gambling match. It may seem complex and confusing for others, but the idea can be learned eventually, especially if the player keeps on reading information about it.

Betting odds: What newbies need to know

If you are a first-time gambler and you want to build a career in this industry, the first thing that you need to learn is how betting odds work. There are many guides online explaining what betting odds are and providing tips on how someone can utilise it for their advantage. Gamblers need to understand betting odds because it will give them information about the percentage of how likely an outcome will be, and how much money will be made from a single round. If you are unsure about the nature of betting odds, you may find it difficult to grasp the idea behind it. Nevertheless, you still need to learn how it works so that you could end up with a huge profit.

Understanding what probability is

You might have heard of the term probability back in your statistics classes. In the gambling industry, learning about probability is a must-do, and it will help you increase your chances of winning.

Simply put, the probability will provide you with an ability to foretell or predict what the outcome of an event will be. If the prediction you make is correct, you can win money. The basic principle behind the study of probability is this – there is a certain outcome for any given event, and your goal is to find out which event is most likely to happen.

Rolling a die is the best example to showcase the idea of probability. When you start rolling a die, six possible outcomes are more likely to happen. When you put in some calculations to the scenario, you will end up having a 16.67% chance of winning, or one out of six. If you are playing a game that includes the use of a die, you may conclude that the bet you make will give you one out of six chances of winning.

When it comes to probability, bookmakers across the United Kingdom refer to the figure as a fraction. Others wanted to refer to it as a decimal. It does not matter because the terms used will not directly affect the game.

Calculating probability using betting odds

In the world of probability, a numeral followed by a slash and then another numeral is a common sight. For example: 10/1. This figure is known as fractional odds. Using the fractional odds will enable you to calculate how likely it is that an event will happen. To explain the idea further, we should start looking at different examples:

If a given fractional odds is 4/1, we should convert it into a letter first, like A/B. In this example, 4 is represented by A, while 1 is represented by B. The general formula for probability should be: Probability (%) = B / (A+B).

Using the formula above as our main guide, a fractional odd of 9/1 can also be expressed as 1 / (9+1) = 0.10. It means that there is a 10 per cent chance for an event to happen. Another example is a fractional odd of 4/1, which can be expressed as 1 / (4+1) = 0.20. It means that there is a 20 per cent chance for an event to happen. Another example is a fractional odd of 1/1, which can be expressed as 1 / (1+1) = 0.50. It means that there is a 50 per cent chance for an event to happen. Lastly, think of a fractional odd that is equivalent to 1/4, which can be expressed as 4 / (4+1) = 0.80. It means that there is an 80 per cent chance for an event to happen, which is very high.

Using these fractions will enable us to determine how likely an event will happen. Applying the same concept to betting will increase our chances of winning when we place a bet.

Calculating winnings using betting odds

Betting odds can also be used to calculate the amount of money that you can win after making a bet. Many people want to enter the world of gambling because they want to earn money that does not require hard work. Using the same formula above, which is 4/1 becoming A/B, we can determine the amount of money that you can take home after each successful bet. You should also remember that for every B value that you place in a bet, you can win A, along with your stake.

Here is an example of how much money you can take home after every win:

  • 9/1: You can win $9 for every $1 bet that you placed.
  • 4/1: You can win $4 for every $1 bet that you placed.
  • 1/1: You can win $1 for every $1 bet that you placed.
  • 1/4: You can win $1 for every $4 bet that you placed.

Calculating winnings using betting odds

When it comes to bookmaker websites, the majority use decimals to represent the betting odds. When a bookmaker uses decimals, it is now referred to as decimal odds. It also follows a different formula: a winning is equal to the difference between a stake and a product of an odd and a stake, that is: winnings = (odds * stake) – stake

  •  25 is calculated as (1.25 * $10 stake) – $10 stake = winnings amounting to $2.50. 
  • 5 is calculated as (2.5 * $10 stake) – $10 stake = winnings amounting to $15.
  • 0 is calculated as (4.0 * $10 stake) – $10 stake = winnings amounting to $30.
  • 0 is calculated as (9.0 * $10 stake) – $10 stake = winnings amounting to $80.

If you do not want to calculate your betting odds by hand, you can use a specialized calculator that has been uploaded online. This will give you an idea about the right calculation for every betting odd. Many gamblers now rely on these calculators because it is difficult to play a game and solve its probability at the same time.

Fractional odds versus decimal odds

Fractional odds and decimals odds are the same – they calculate the probability of an event happening. However, in recent years, many people tend to gear towards decimal odds. The main reason behind the shift is people feel decimal odds are easier to understand, influencing others to believe.

Another difference between the two formats is the way fractional odds only represent your winnings, while decimal odds represent the winnings and the stake. If you want to understand how the odds affect your gameplay, you can rely on either fractional odds or decimal odds and see which calculation explains it best.

Online tools that can convert betting odds into different formats

If you are having difficulties understanding the calculations mentioned above, you can use probability calculators that are readily available on the internet. It will also explain how a player won, making it extremely helpful.

Conclusion

If you wanted to become a better gambler, you need to take betting odds seriously. This will enable you to understand the basics behind the idea, and it will also give you a chance to create new strategies on how you can conquer the gambling industry.

A lot of gamblers today are trying to hone their skills in mathematics because it can help them earn money. By mastering the basic and the complex rules of probability, you will end up becoming a successful gambler who can take home a huge amount of money.

This article is sponsored by Growth Box Ventures

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