Betting odds are everywhere; they are used for a wide range of different things, but they are most popular when used throughout sports. Whether it is for a team to win, a player to win a competition or for a team to be relegated, there are betting odds for loads of different elements, giving bettors plenty of options. Some users may wonder how these odds are determined, what factors come into play and what different odds are available. Well, here at OddsMonkey, we will look through all these different factors to help our users gain a better understanding of how betting odds work.
How Are Betting Odds Calculated?
There are loads of different elements which come into play to calculate betting odds, with a team of mathematicians and experts working hard to create fair odds which will award the bettor a decent return if successful, with a risk which will earn the bookmaker profit if not successful. In essence, betting odds are calculated by how likely the event is to happen. These odds are represented by either fractional or decimal odds, and UK bookmakers typically use fractional odds. If the odds are higher, then the likelihood of the event happening is quite unlikely, whereas lower odds represent a higher chance of the event happening.
As previously mentioned, there are lots of different elements that come into play when creating betting odds. Sports betting requires research and preparation when creating the odds. Bookmakers will look at recent performances from the participants or teams, historical data between fixtures and different environmental factors which can affect the game. These different aspects are considered when creating the odds for different sports, such as football, tennis and cricket, with more info available in our sport-specific guides, such as our football betting and cricket betting guide.
When these different aspects change, the odds will change alongside them, and bookmakers will always try to update them as soon as possible to ensure fair playing for everyone. This is the same case for fixed odds; despite their name, they will be affected by aspects such as team news, injuries or competitors dropping out. One of the most common examples is the Rule 4 deduction, which is only seen in horse racing and affects the odds of other horses.
Different Forms of Odds
Depending on which bookmaker you are using, there are different ways that odds are displayed and used. For example, fractional odds are displayed in the following way: 2/1, 3/1, 7/2. The best way to read these odds is the first number is your return if you stake the second number. For example, if a selection has odds of 4/1, then those who place a stake of £1 will receive £4, and those who stake £2 will receive £8. With mental maths becoming quite confusing for more complex odds, make sure to use our single-bet calculator, which can be used by bettors who are working out the returns of a single bet.
Odds can also come in decimals, which are sometimes known as ‘European odds’ and are becoming more popular throughout the UK. To work out the expected return, using decimals is much simpler than fractions, with bettors using the odds to multiply with the stake. If the odds are 5.00 and you stake £1, the bet being successful will return £5.
Finally, there are American odds, which are also known as moneyline odds. These odds come with plus and minus symbols, which are hugely important when placing bets. For positive odds, the figure refers to the amount the user would win if they bet £100, so if the odds were +400, the bettor would win £400 from £100, or a 4/1. For negative odds, this shows what the user would have to risk, so if there are odds of -400, then the bettor would have to bet £400 to get £100, or 1/4.
If bettors are unsure how these odds are converted, make sure to check out the odds converter tool available at OddsMonkey to learn more.
Betting Odds In Matched Betting
To take advantage of these odds, bettors are able to place back bets and lay bets on these markets at bookmakers and betting exchanges to make the most of their bets. This is one of the matched betting techniques which can remove the risk of loss and ensure that bettors can make a return. By understanding how the odds work, we can find the best-matched betting opportunities, which is massively important for matched bettors!
With all of these different aspects being taken into account by bookmakers, it is important for savvy matched bettors to also think about these different elements which can affect the game. If you are looking for more tips, we have an extensive matched betting blog filled with tips and tricks for all matched bettors.
