(Also known as Traditional or British)
- Used mainly in the UK and in international horse racing. Becoming less popular online.
- Tell you the amount of profit relative to your stake if you win your bets.
- For example, if you bet £10 at odds of 3/1, you receive £30 profit if you win.
(Also known as European)
- Common around the world but especially in Europe. Standard on betting exchanges such as Betfair.
- Convey the total amount you will receive if you win, including the return of your stake.
- For example, if you bet £10 at odds of 3.75, you will receive £37.50 in total if you win.
(Also known as American)
- Used by most US bookmakers.
- Based on a straight single bet (on a single outcome, without a points spread)
- If the moneyline is positive, the amount quoted is the amount you would win on a $100 bet.
- If it is negative, the amount quoted is what you would need to bet to win $100.
Betting odds and chance
To first understand what betting odds are, we have to first understand the concept of chance.
Chance is the likelihood of an event happening. It is often expressed in percentages, also referred to as the probability.
Let's roll a dice.
Rolling a dice yields a probability of 1 out of 6 for each outcome.
The chance of the dice landing on any of the 6 numbers is equal. In percentages this means a 16.66% chance (or probability) of any of the six numbers to coming up.
How is this calculated?
Simply by dividing 100% by the 6 possible outcomes.
Betting Odds Explained
Knowing how to convert betting odds can be very helpful. In fact, if you don't know how to convert betting odds into their respective implied probabilities, you're not helping your chances of coming away as a long term winner in the competitive world of sports betting. Understanding the implied probability behind the odds on offer is key to assessing the potential value in a
particular betting market.
And it is just as important when assessing the value that exists with regards to specific odds on a particular outcome. If the implied probability is less than your own assessed probability of a particular outcome occurring, that outcome represents a value betting opportunity.
If, however, you want to learn how to convert odds to implied probability and how to covert implied probability to various odds formats, please read on. This article explains in detail how to convert the three most popular odds formats in the world - decimal, fractional and American - into their implied probabilities and how to convert an implied probability into either of these odds formats.
What is implied probability?
Implied probability is the probability of the outcome if you assume the odds are correctly priced. For example, with a fraction odd of 5/2, one can assume that the probability of that outcome is 28.57%.
It's up to you to decide if the bookie's assigned probability is good or bad for you to bet. If you believe for example that the outcome has a probability of 50% and you find an odd of 5/2, you would get a great deal!
Getting the best deal
Before placing a bet you should always compare odds. A pro knows that when you place a bet you must have an advantage.
Betting on the "feeling" is the strategy used by most amateurs and that's the reason why they keep loosing money.
If i flipped a coin and gave $1 for a heads and you would give me $2 for a tails, would you consider it a good deal? Ofcourse not! That's why having the best odd available is a key principle for making money with sports bets.
ALWAYS use a tool like OddStatus or OddsFetcher to find the best odds before placing a bet!