Understanding the Nature of Odds in Betting

Don’t you think it’s high time you stopped relying on the odds given to you by casinos and took steps to understand the nature of odds in betting? We know there are many odd calculators ready to do the task for you these days, but knowing the very basics will do you so much good. To many, the odds are quite synonymous with money. However, odd is more than just money.

In any game, the odds predict the outcome of a game. It helps you make your own decision to the extent that you know the risk involved in any wager. It collates a particular game’s historical data and records to determine the probability of winning the game and the percentage of risk required to win. The game with the highest odds is most likely considered the best to play. However, the lower the odds, the more exclusive the game is, which may mean more money.

Types of Odds

There are three fundamental types of odds, namely: decimal, fractional, and money-line odds. The common name for the money-line odd is the American odds. Although these odds are different, you can convert them interchangeably depending on the type that most suits your purpose. They can also be converted into probability percentages. Now, let’s consider these odds one after the other.

 Fractional Odds

Another name for this is the British Odds or the traditional odds. It is expressed using fractions to explain the value of your winning at each stake. It is very likely to see a game’s odds expressed as 6/4. When you see this, it means you are going to be winning $6 for every $4 game. The fraction may be further simplified into 1/5 odds. This is obtained when you divide an actual 6/4 fraction.

As a result, a 1/5 chance would still result in a $6 if you multiply $4 by 1.5.The fractional, or British, odds are one of the simplest to multiply in determining the quick outcome of any wager or bet. It is common to see odds like this in many online casinos, like NistroCasinos. Whatever the fraction is, use mathematics or a simple calculator to break it down to the simplest unit, then multiply your wager by the decimal you get.

Decimal Odds

If you find fractional odds complicated, especially when you have bigger fractions like 11/8, then decimal odds may seem simpler to use. Remember that even for some big fractions, you get to convert them to decimal first to get a simpler unit.

Some games offer decimal odds, and all you have to do is a simple multiplication. For example, if you want to wager $10 on a game and the odds come in at 2.5, all you have to do is multiply to know what your winning is. In any case, that will be a $25 win.

American Odds

You will find most American sports books expressing their odds using this method. Instead of fractions and decimals, the American odds are expressed using the positive and the negative. The numbers of the absolute value will determine the value of what you get from the bet. For instance, when you see a -140 odds, it means you are risking $140 to win a $100 bet.

This will bring us back to the absolute value. It means that a -500 is better than a -120 odds. The former will mean that you lose $100 or you win $500. The value of these negative or positive numbers is always within the $100 baseline value. For smaller number values, like risking the -135 odds, the problem is always how to break even.

The ultimate question will be how many bets you would have to place to earn $500, for instance. To calculate this, you will have to divide the -135 odds by your projected payout of $500. This will give you .27, or 27%. Therefore, you will have to win 27% of your bets at -135 to earn that projected $500 payout.

Final Thoughts: Must I Calculate Odds Myself

A big no! There are odds calculators, applications, and other tools that save you the stress of converting one type of odd to the other. You may also quickly determine the value of your bet using any of these tools.

However, it is just important that you have an idea of how the conversion and the odds system generally work. Consider this a way of saving yourself the embarrassment of not quickly estimating your winnings when you find yourself playing where you have no access to any of these tools.