How Do Betting Odds Work? A Simple Guide for Beginners
Kiwis have Betting in their blood. A game of chance is setup to yield a set of outcomes, where one particular outcome is the most favoured, which gives way to a host of odds that are calculated through the probability of that outcome.
All betting activities are riddled with probability and odds. Punters are aware of the event and the likelihood of a particular outcome.
Kiwis have a rich selection of betting establishments to select from, with land and online based betting establishments offering a diverse spread, punters from New Zealand should understand betting odds before opting for real play.
With terms like decimal and fractional betting odds, decoding their meaning can be intimidating.
Odds Tell A Story
All betting odds explain the relationship between the probability of the wager and the potential winnings you may claim.
Favourable betting odds have the potential to yield lucrative payouts due to the unfavourable characteristics of the bet. Neutral betting odds characterize a bet that is safer, with more winning potential and a lower payout rate.
Probability is at the core of the foundation of all betting odds. Punters using online betting sites should have a firm grasp of probability before attempting to make sense out of betting odds.
Probability is simplified as likelihood. In all betting odds probability takes into account how likely a particular outcome may be. For example if you bet on somebody to roll a dice and land a six, the probability is 16.66 %, as there are 6 possible outcomes out of 100 %.
Fractional Odds And Probability
Numbers separated by a forward slash represents fractional odds. Kiwis who are familiar with sports betting will understand these odds to represent the probability of a certain bet.
In order to calculate the probability of bets punters need to make a simple calculation.
If the fractional betting odds provided are 1/1, this means that there is a 50% chance of the bet ringing true. To calculate this Kiwis simply need to utilize the following formula.
1/ 1+1 = 0.5 or 1 divided by 2 = 0.50.
If the betting odds were represented as 4/1 there would be a 20 % probability of the bet to win. Kiwis can calculate this by the same formula of 1 divided by 5 = 0.20 %.
Calculating Winnings From Betting Odds
Fractional betting odds allow you to calculate the potential winnings from a wager. The payout amount is relative to the stake amount and is directly linked to the fractional betting odds.
For example in 1/1 betting odds punters will now know that the probability of the bet is 50%. Kiwis in quest of winnings calculations will be delighted to know that these are simple.
In any fractional betting odds punters should assign alphabetical letters in order to make this formula even easier.
If the first number represents X and the second number after the forward slash Y, then for every value of Y bet, your winnings will be X.
Therefore victorious 1/1 betting odds will afford punters with $1 for every $1 bet on top of the stake amount that is wagered on the bet.
If the winning betting odds were 4/1, according to the formula for every $1 bet Kiwis will see $4 in return.
Decimal betting odds are displayed on various sites and allow for quick and easy calculations on potential returns. Decimal betting odds will be represented as follows 10.00.
This means that if Kiwis place a $1 bet on a 10.00 odds stake the return is $10 plus the stake amount.