Your Practice. Popular Courses. Key Takeaways The three main types of betting odds are fractional British odds, decimal European odds, and American moneyline odds.
The types of odds are simply different ways of presenting the same thing, and hold no difference in terms of payouts. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles.
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What Is Spread Betting? Spread betting refers to speculating on the direction of a financial market without actually owning the underlying security. Betting odds allow you to calculate how much money you will win if you make a bet. Quite simply, for every value of B that you bet, you will win A, plus the return of your stake. Decimals are far more common on exchanges, such as Betfair, but all leading betting sites do give you the option to view betting odds in this format.
They are an alternative to seeing betting odds in the fraction format, and in our opinion, are easier to work out. To make all this information slightly easier to understand, here is a quick example of a bet on a football match. If you were backing Arsenal to beat Liverpool you might see the odds of that outcome at 4. You can also use our bet calculator to help you calculate winnings. Traditionally, fractional odds have been used in the UK, especially at racecourses and on the high street.
There are two key differences. Generally, decimal odds are easier to understand. Based on this, there has a movement to attract more people to horse racing by making it more accessible to the average punter.
Ten years ago, if you were going to Cheltenham, all the odds would be displayed as fractional odds. The second difference between the formats is that fractional odds only represent winnings, and do not include the returned stake compared to decimals which do include the stake.
The transition from fractional odds to decimals largely kicked off with the growing popularity of the betting exchanges such Betfair. These are hard to compute for the punter and are not a great way of showing betting odds explained. Moneyline bets are as straightforward as it gets in sports betting. You're betting on which side will win an event and if that side wins, you win. A spread bet is on the forecasted point differential between two teams.
In each bet, a push is also possible if the Lakers win by exactly seven points. That would mean each side gets their money back. As for the odds, the most common number for spread bets is , but that number varies depending on the location, sportsbook and how popular each side is. However, there are states where odds are worse in order to get the state more money such as or This is also called the vig , which is the amount the sportsbook charges per bet.
If two teams are equal, PK will be given alongside a team name which means the matchup is considered a "pick 'em. Similar to a spread bet, if the Cowboys and Giants combine for exactly 49 points, it's a push and each side get their money back.
Also similar to spread bets is that the odds can vary. These odds may be the easiest of the three to understand just by looking at the numbers. The team with the higher of the two numbers 3. The return can be calculated by multiplying the bet with the the decimal odds. Fractional odds are most popular in the United Kingdom and Ireland, and are often the choice for horse racing. Also, a lot of sportsbooks in the United States will use fractional odds for futures odds.
Similar to decimal odds, the return can be determined by multiplying the odds and the bet. Above, times 2. How do sports betting payouts work? As we have previously described, odds tell you how likely an event will happen.
However, this is not the whole story. We look at 4 factors that can influence odds:. Money is the most important factor for a bookmaker. Bookmakers exist to earn money. And they try everything they can for not risking losing money on improperly priced odds. They constantly analyze which participants their customers place their bets on. This even happens completely automatically.
If a lot of customers bet on a specific song, it is a hint that customers consider it a good bet — or in other words: the odds of the song are too high, compared to the customer's expectation of payback. Therefore, the bookmakers will automatically lower this song's odds so that the bookmakers do not lose money. The bookmakers look a lot at the other competing bookmakers' odds.
Both to be competitive, but also to read trends. If a neighbour suddenly lowers odds on a particular song, it can either mean that the neighbour's customers have bet more on this song, or maybe the neighbour has some insider information that you don't have.
Therefore, it is better to "play safe" and follow the neighbour than risking a loss on a song.
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