Sports betting relies on odds which have existed as a fundamental element for centuries. These figures provide users with information about both betting returns and the probability of specific events occurring.
Over time, three main formats have emerged: fractional, decimal, and American. These are used in different parts of the world and serve the same purpose, but in distinctive ways, so let’s explore each one in simple terms, and put theory into practice at IviBet afterwards!
Fractional Odds
Fractional odds are one of the oldest formats, popular in both the UK and Ireland. These ratios have an appearance similar to 5/1 or 2/3. Your pay-out amount is displayed as the first digit while the required bet is shown through the second. You will win $50 plus your original $10 stake when placing $10 at 5/1.
When the probabilities read 2/3 you need to stake $3 to receive $2. This provides a simple way to decide in situations where the frontrunners and runner-ups are already established. It has been a staple in horse racing since ancient times and continues to appear at other modern events.
Decimal Odds
Decimal odds are the most straightforward type and are widely used in Europe, Australia, and Canada. They show the total amount you will receive for every dollar you bet, including your initial stake. So if the likelihood is 3.00 and you put down $10, your total payout would be $30. This includes your first $10 and $20 profit.
These are simple because they only require one number, and make it easy to cross-compare and quickly calculate payouts. That’s why many people prefer them, especially when online or at international events.
American Odds
American odds are mostly used in the United States. They also go by the name of money lines, which present numbers either positive for underdogs or negative for favorites.
When likelihoods show +200 you will receive $200 from a $100 stake. You’d need to invest $150 for a chance to win $100 according to negative odds of -150. Underdogs receive positive odds whereas favorites receive negative ones.
The initial complexity of American chances diminishes when users grasp their logical structure. These provide straightforward displays of potential risks and possible rewards and regularly appear across sports like football, basketball, and baseball.
Hong Kong Odds: A Regional Twist
Hong Kong odds are a lesser-known format used in parts of Asia, particularly in Asian markets. Here, the probabilities reflect the net profit relative to the stake.
If the chances are 0.50, $10 would yield $5 in profit, and your total payout would be $15 (your $10 stake plus $5 profit). If they are 1.50, $10 would result in a $15 profit, with a total payout of $25.
Unlike decimals, where the figure includes the stake in the total payout, these focus only on the profit. This makes it a straightforward system for more experienced people who prefer calculating net gains separately. They are especially popular in horse racing and other sports in the region.
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