Understanding Decimal Odds
What are Decimal Odds?
Decimal odds are a popular way of representing betting odds in Europe and Australia. They are also known as European odds or continental odds. Decimal odds represent the amount of money a bettor will receive for every pound or euro they wager, including their original stake. For example, if the odds are 3.50, a £10 bet would return £35 (£10 x 3.50).
Decimal odds are easier to work with than other types of odds, such as fractional or American odds, because they already include the original stake in the calculation. This makes it easier to calculate potential winnings.
How to Read Decimal Odds?
Reading decimal odds is straightforward. The odds represent the amount of money a bettor will receive for every pound or euro they wager. For example, odds of 3.50 mean that a bettor will receive £3.50 for every £1 they wager.
Here’s an example:
| Betting Selection | Decimal Odds |
|---|---|
| Manchester United | 2.50 |
| Arsenal | 3.00 |
| Draw | 2.75 |
In the above example, if a bettor places a £10 bet on Arsenal to win, they would receive £30 (£10 x 3.00) if Arsenal wins. If they bet on the draw, they would receive £27.50 (£10 x 2.75) if the match ends in a draw.
Decimal odds can also be used to calculate the implied probability of an event occurring. To do this, divide 1 by the decimal odds and multiply by 100. For example, if the odds are 2.50, the implied probability is 40% (1/2.50 x 100).
Understanding American Odds
When it comes to sports betting, American odds are one of the three most commonly used formats, alongside decimal and fractional odds. While decimal odds are the default format used in Europe and Australia, American odds are the norm in North America. Understanding American odds is essential if you want to place a bet on American sports, and it’s also useful knowledge to have if you want to convert between different odds formats.
What are American Odds?
American odds are also known as moneyline odds or US odds. They are expressed as either a positive or negative number, with the positive number indicating the underdog and the negative number indicating the favourite. For example, if the odds for a football game are +150 for the underdog and -200 for the favourite, this means that a $100 bet on the underdog would win $150, while a $200 bet on the favourite would win $100.
When the odds are positive, they indicate the amount of money that would be won on a $100 bet. When the odds are negative, they indicate the amount of money that would need to be bet in order to win $100. So in the above example, a $100 bet on the underdog would win $150, while a $100 bet on the favourite would win $50.
How to Read American Odds
Reading American odds is straightforward once you understand the basics. If the odds are positive, the number indicates the amount of money that would be won on a $100 bet. For example, if the odds are +150, this means that a $100 bet would win $150, and a $50 bet would win $75.
If the odds are negative, the number indicates the amount of money that would need to be bet in order to win $100. For example, if the odds are -200, this means that a $200 bet would win $100, and a $100 bet would win $50.
It’s important to note that American odds can be displayed in different ways depending on the sportsbook or website. Some sportsbooks use a plus sign (+) for the underdog and a minus sign (-) for the favourite, while others use brackets or other symbols. However, the basic principles of American odds remain the same regardless of how they are displayed.
Conversion of Decimal Odds to American Odds
Formula for Conversion
To convert decimal odds to American odds, you can use the following formula:
| Decimal Odds | American Odds |
|---|---|
| 2.00 or greater | (Decimal – 1) x 100 |
| Less than 2.00 | -100 / (Decimal – 1) |
If the decimal odds are 2.00 or greater, you simply subtract 1 from the decimal odds and then multiply the result by 100 to get the American odds. If the decimal odds are less than 2.00, you divide -100 by the decimal odds minus 1 to get the American odds.
Example Calculation
Let’s say you have a decimal odd of 3.50. To convert this to American odds, you would first subtract 1 from 3.50, which gives you 2.50. You would then multiply 2.50 by 100 to get the American odds, which is +250. So, a decimal odd of 3.50 is equivalent to American odds of +250.
Similarly, if you have a decimal odd of 1.75, you would first calculate -100 divided by (1.75 – 1), which gives you -400. So, a decimal odd of 1.75 is equivalent to American odds of -400.
By converting decimal odds to American odds, you can easily compare odds from different bookmakers and make more informed betting decisions.