Understanding The Difference Between Odds Types
In their simplest form, odds are nothing more than a method of quantifying chance, but within the realm of betting. Chance is straightforward and easy to understand, and is usually broken down into percentages. A sports team has a 50% chance of losing or winning – all the outcomes of any event will eventually add up to a total of 100% in the end, which is why chance is the first and most basic rule there is to betting.
Odds are therefore used to reflect the chance that a bettor has of winning or losing, and by what percentage. These are the odds that are used by bettors when taking out a wager, and odds are also used to determine how much a better can win or lose.
In many cases, odds are created artificially by a bookmaker. The bookmaker will use all the information they have available and then create an odds table on which their bettors will make wagers. Managing odds can become extremely complicated, however, as often there are multiple bets that can be placed at once, each with its own set of odds, but still ultimately calculated together. On top of this, there are different types of odds that bookmakers use, and understanding these different types can making betting much easier for newcomers.
Decimal odds are most commonly used in Europe, and are a simplified version of percentage odds. The most common method of creating a decimal odd is by taking the percentage of a chance and diving it by 100. For example, 100% chance is the ultimate outcome. If, when taking a bet, there is a 20% chance of winning, it is calculated as 100/20 which equals to 5, which is the decimal odd.
Fractional odds on the other hand are found more commonly in the United Kingdom, and while they are mathematically the same as decimal odds, the calculations made to receive the total answer is done differently. For example, the 20% chance from the 100% will be viewed as 1 out of 4, which means that there for every one win, there are 4 losses. This is exactly the same as saying that there is a 20% chance to win and an 80% chance to lose.
The United States uses its own odds system, which is more commonly known as money line odds. Most money line odds have a plus or minus symbol. The plus symbol indicates the amount that would be won for a stake, and the minus indicates how much is required to win on a stake.
Understanding The Odds
While not always vitally important, learning and understanding the different kinds of odds from around the world can help the bettor make more informed decisions. This also means that the bettor will not become confused by the various odds systems in place, and can switch from country to country online with very little effort. Like with anything in online betting, information is always the most important part of the process.