Betting Odds Explained Beginner’s Guide

Probability is the likelihood of an outcome happening and is usually displayed as a percentage. Betting odds may seem a little confusing to start with, but they’re actually quite straightforward once you’re familiar with them. The Kelly Criterion formula depends on p (and thus q) and b. If you bet too much, you can lose fast even if the odds are good.

Switching Decimal Odds to Fractional Odds

This smooths the process for those placing bets and also keeps things consistent at the counter or online, as people are accustomed to this format. The vig (short for vigorish), or juice, is another variable that can have an important bearing on your success as a sports bettor. Think of the vig as the extra charge or convenience fee sportsbooks add for taking your bet.

  • Similarly, for every £11 you put on Liverpool to win, you’d earn £8 back plus your original bet.
  • The first number represents the potential profit, while the second shows the stake required to achieve that return.
  • Backing a selection at 5/6 means that you’d need to stake £6 to win £5 – this is because the bookmaker regards the event as more likely to happen than not.
  • If the bet is successful, the total payout includes both the profit and the original stake.
  • Most bookmakers now use both fractional and decimal odds, but it’s fair to say the historic odds format is less popular than the new kid on the block.

How can I use odds to enhance my betting strategy?

The odds for Newcastle to win are 7/1, and the odds for Liverpool to win are 8/11. Secondly, fractional odds provide insight into the bookmaker’s assessment of an event’s outcome. Higher odds often reflect less likelihood of a result, and vice versa. Decimal odds are the simplest to understand since they directly show the potential return per stake. Gambling can be addictive, always play responsibly and only bet what you can afford to lose.

Identifying Value Bets

That is, finding a bet where you believe the odds (and therefore the implied probability) is too big. If the bookies think that a side has a 50% chance of winning but you think they’ve got a better chance than that, that’s value. Fractional odds are a type of betting odds that aim to display the chances of you winning a wager.

Any offers or odds listed in this article are dafabet correct at the time of publication but are subject to change. In-play odds are another piece of jargon that’s fairly straightforward once you read the explanation. Simply put, an underdog is the ‘thing’ – whether that be a sportsperson, team, horse or otherwise – that is less likely to win.