What would be the most important thing you would need to know when it comes to sports betting? Well it’s odds, understanding how betting odds work can be a line between taking home profit and losing your bet. With odds we can assess what is the probability of an outcome for a certain event, and how much you can win if your bet is won. They can be divided into 3 different categories. First we have decimal, second is fractional and third one is American odds. In order for us to better understand the world of gambling and make good bets it’s important to get yourself familiarised with each type of those odds.
Decimal Odds: Simple and Straightforward
In Europe the name for decimal odds is European odds and this name is also used in other countries like Canada and Australia. This type of odds is the easiest form of betting, and you will be able to get a grip on it in no type. If you go to the Dafabet sign-up page, you can see how simple the process is, especially for beginners. To be precise here, decimal odds do represent total payout which you would receive for every buck you wagared all including your stake even.
For decimal odds numbers are always shown with 2 decimals, like 1.25, 3.10 and so on. This is where it got its name decimal odds. All decimal number shows the amount of money you will win for every 1 USD you wagered on this bet. Here is an example of how you would do your calculations. Original stake x Decimal = Total payout
Since the formula is very simple, this is usually the favorite type of odds that newbies like to wager. Other methods might be a bit more complex to grasp in the beginning. This way you can quickly calculate wins right away. This system is widely used mostly outside of the US, like Europe and Asia. Still, some bettors find it too simple and tend to stick with more old-fashioned ways of placing bets.
Fractional Odds: Traditional and Widely Recognized
Due to tradition, this way of betting is mostly found in the UK and Ireland. It has been a standard for centuries, way before internet and online betting platforms, and some gamblers are still committed to this way of placing wagers. These odds are typically written as fractions, such as 5/1, referred to as “five to one”.
In fractional odds, the number on the left represents how much you can win if you stake the amount on the right. The number on the left side is called the numerator, while the number on the right is the denominator. The payout is calculated by dividing the stake by the denominator and then multiplying it by the numerator.
This is the formula: Profit = (Stake × Numerator) / Denominator
For example: If you place a bet of $100 at odds of 5/1, your profit would be (100×5)/1 = $500. However, your total payout would include your stake too, making your win $600 ($500 profit + $100 original bet).
Another one would be if you place a $50 bet at 2 to 3 odds. COmpute your wins like this: ($50×2)/3 = $33.33 which is your profit. At the end, your payout will be $50, original bet, plus $33.33 profits, coming up to $83.33.
To simplify the process, look at it this way – the bigger the number on the left, the higher the potential return. At the end, you will be paid your stake plus the winning amount.
This method is mostly used for horse racing and can be quite simple if you only focus on the first number which tells you how much you could win for each unit of stake. However, it’s not the simplest way to quickly calculate winning. It might take some mental focus, and it’s generally not the preferred method among new bettors since it’s more complex with using fractions instead of decimals.
American Odds: Popular in the United States
This type of odds are mostly used in the United States of America and they are popular in American national sports which are popular in the country. Basketball, American Football and baseball are the most popular sports where american odds are used. Those odds are expressed as positive and negative numbers and they can be split into two types. Like the names say type positive and type negative.
Positive type – For positive type odds if the odds are positive they will show the amount of profited money that you made from 100 bucks stake. Let’s set an example here.
+200 (Positive 200) means that if you bet 100, you will get 200 in profits if you bet comes in your favor.
Negative type – For negative type odds stands if the odds are negative, it will show how much you will need to bet in order to be profitable 100 usd. This is shown as -150 meaning you would even need 150 usd to get 100 in profit.
Formula for Positive Odds: Profit = (Stake × Odds) / 100
Formula for Negative Odds: Profit = (Stake / Odds) × 100
Here are some practical examples.
If you place $100 at +250 odds, this means that your profit will be (100×250)/100 = $250 plus $100 original stake.
On the other hand, if you place a bet of $100 at odds of -200, your profit would be (100/200)x100 which brings us up to $50. Total payout will be profit plus original bet, which is $150.
This way of betting is very popular in the US and is used by all American based betting platforms. Positive odds reflect the potential win, while the negative ones show the required stake to win a specific profit amount. This method is way more complex than the decimal one, dealing with positive and negative numbers, and a lot of calculations. This is why many bettors prefer some other way of placing bets, at least when we talk about the world outside of the US.
Every method has the same endgame – reflecting the potential winning. Players who are still new to online betting prefer the simplest method of decimal odds that offer simplicity and clarity. Fractional odds are backed by a long tradition in the UK and Ireland, and out of respect for their customs, many players choose to still use this method. American odds are the most complicated at first glance, but with practice can become second nature. Whichever format you choose, fundamentally they all serve one purpose – to calculate the potential winnings.
For more football updates, make sure to follow us on:
