Understanding Betting Odds: From Decimal to Fractional and American Formats
Odds in sports betting play a key role in understanding the prospects of a prediction and assessing the chances of a possible win. They not only indicate the potential profit, but also reflect the probability of a particular outcome. There are three main formats of odds in the world of betting: decimal, fractional, and American odds.
In this article, together with the experts from dancesportosu.org, we will break down each of the formats, learn how to convert odds between each other and consider which one is more convenient to use in different contexts.
What are betting odds
Odds are a numerical expression of the probability of a certain outcome of a sporting event. They also determine the amount of potential winnings. For example, if the probability of a team winning is 50%, the odds will reflect this ratio. The higher the odds, the lower the probability of the event, but the greater the potential winnings.
Next, let’s look at the features of each format in more detail.
Decimal odds
This odds format is the most popular in Europe, Asia and Australia. In Portugal, most bookmakers use decimal odds. The odds are expressed in decimal format. For example, on a betting site it will be listed as 2.50 or 1.75.
Let’s look at some examples. A 2.50 odds means that for every 1 INR bet placed, the user will receive 2.50 INR, including a refund of the original amount. And a 1.75 odds means that for every 1 INR bet, the user can win 1.75 INR.
To calculate the potential profit you can use the following formula: profit = bet × (odds – 1). Let’s imagine that you made a bet of 100 INR with odds of 2.50. The win in this case will be 250 INR with a net profit of 150 INR, calculated using the formula = 100 × 2.50.
The main advantages of decimal odds include simplicity of understanding, quick calculation of the amount of potential winnings, as well as ease of perception for most users. But the format also has certain disadvantages: it can be less accurate when displaying probabilities.
Fractional Odds
This format is most popular in the UK and Ireland. It looks like a fraction, for example 5/1 or 7/2. Let’s look at how to calculate fractional odds using examples. For example, a 5/1 ratio means that for every 1 INR bet, you can get 5 INR of net profit. A 7/2 odds means that for every 2 INR bet, you can win 7 INR of net profit.
To calculate the potential winnings, use the following formula: winnings = (bet × numerator) ÷ denominator + bet. For example, the size of the initial bet may be 100 INR and the odds are 7/2. The winnings could be 450 INR, as it is equal to (100 × 7) ÷ 2 + 100.
Today, fractional odds are quite common in the catalogues of betting sites in the Netherlands, as they optimally reflect the risk/reward ratio. The main disadvantages include their inconvenience for quick calculations, as well as the need for math skills to understand them.
American ratios
These ratios are common in the US and work differently from decimal and fractional ratios. They come in positive and negative ratios. A positive odds (+200) – shows how much you can win by betting 100 INR, while a negative odds (-150) shows how much you need to bet to win 100 INR.
Let’s take a look at how the formulas for calculating winnings work. If the odds are positive, the winnings can be calculated as – (bet × American odds) ÷ 100. For example, if the bet amount is 100 INR and the odds are +250, the winnings will be as follows: (100 × 250) ÷ 100 = 250 INR.
If the odds are negative, then the winnings can be calculated – (bet × 100) ÷ | American odds|. For example, the bet size is 150 INR and the odds are -150. The winnings are calculated as follows = (150 × 100) ÷ 150 = 100 INR.
The main advantages of American odds include their popularity in major American leagues (NFL, NBA, MLB), as well as the ability to quickly identify favourites and underdogs. However, they are quite difficult to understand for European users and require conversion to decimal format for convenience.
Converting odds between formats
Odds conversion can be useful when different systems are represented in a betting site’s catalogue. Let’s take a look at how it works:
- Converting decimal to fractional – use the formula decimal odds – 1 = fractional odds;
- Converting fractional to decimal – use the formula (numerator + denominator) + 1;
- Converting American to decimal – use the formula American quotient ÷ 100) + 1;
- Converting decimals to American – if the quotient is greater than 2.00, use the formula (decimal quotient – 1) × 100, and if the quotient is less than 2.00, use the formula -100 ÷ (decimal quotient – 1).
When calculating odds and potential profits, it is important to consider the commission that the site’s betting team retains.
Choosing the format of the odds
The format of the odds should be chosen based on skill in calculating the probability of winning and geolocation:
- For European users, decimal odds are suitable as the most convenient and intuitive;
- For British users – fractional odds, as they are traditionally used on big horse races and football matches;
- For American users – American odds allow you to quickly navigate through the betting lines.
Odds are the basis of sports betting. Their understanding helps not only to quickly calculate the possible winnings, but also to find ‘valuya’ bets – those that bring potentially the biggest profit; To become a successful bettor, it is important not only to understand the odds, but also to be able to analyse events, search for profitable lines and manage your bankroll. Now you have all the knowledge you need to play with more confidence, so start choosing an event, betting market and odds.
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