Betting, be it sports betting, novelty betting or any other form of betting that one may think of is guided by odds. Odds are the special numbers which determine the favourite and the underdog in a match/event. As such, this basically means odds represent the amount the player wins against each stake placed. When looking to back any team and place some bets, it’s important that punters know the odds for the team they are betting for and the one they are betting against.
Placing bets while cognizant of the odds between the teams going to head to head enables the player to place the bets from an informed position and in doing so enhance one’s chances of winning. Well, when it comes to odds, punters ought to note that they can be presented in different ways. The way the odds are presented determines the type of the odds. In this article, we are going to expose the different types of odds starting off with American odds.
What are American Odds?
American odds are also known as moneyline odds or US odds. American odds are prefixed with either a (-) sign or a (+) sign. The (-) sign is used for odds of the favourite in a tie/event while the (+) sign is used for odds for the underdog in a tie/event.
When it comes to the odds for the favourite, the number which is placed after the (-) sign indicates the amount that the punter needs to stake in order to win $100. On the other hand, when it comes to the odds of the underdog, the number which is placed after the (+) sign indicates the amount won for every $100 staked.
To put the above into perspective, suppose there is a match between the New York Red Bulls and Houston Dynamo with the Bulls having odds of +585 and the Houston Dynamo having odds of -760. What these odds mean is that the punter looking to back the Bulls with $100 will win a $585 if the Bulls win coupled with the staked amount meaning the grand total he gets to walk away with is a cool $685. If however the punter chooses the back the favourite that is, Houston Dynamo with odds of -760, the punter will have to bet $760 in order to win $100.
What are Decimal Odds?
Decimal odds are presented in a decimal format and they represent the amount one wins for every 41 wagered. Unlike the American odds, decimal odds represent the total payout rather than the profit margin only. This, therefore, means in calculating the potential payout, there is no need to add back your stake as it’s already included in the odds.
What are Fractional Odds?
Fractional odds do represent the ratio of the amount (profit) won to the stake. Fractional odds may also be referred to as British odds, UK odds, or traditional odds. They are typically written with a slash or hyphen. The biggest betting brands favour using the fractional odds hence they are the most popular. When a team has 6/1 (6-1) odds, it simply means that the punter wins $6 for every $1 wagered. In addition to the $6 profit won, the player will receive his $1 stake back bringing the grand payout to $7.
What are Implied Odds?
Implied odds are used when laying poker and they are basically an extension of pot odds. Implied odds help the player to determine if a drawing hand is worth calling in the face of a raise. Implied odds therefore inform the player of expected winnings after a draw. Good implied odds come if the player expects to win a lot more money from the opponent after the draw while little or no implied odds come if the player is not able to get any more money out of the opponent on future rounds.
How to Convert American Odds to Decimal Odds
The formula for converting American odds to decimal odds is as follows:
Positive American Odds: (American odds/100) + 1 = decimal odds
Negative American odds: 1 – (100/ – American odds) = decimal odds