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Understanding Betting Odds

Odds are more than just numbers on a screen; they are the price of probability. To beat the bookmaker, you must first learn how to read their language fluently.
Answer-first

Betting Odds indicate two things: the potential payout of a winning bet and the Implied Probability (the percentage chance) of that outcome. The three main formats are American (+/-), Decimal (2.50), and Fractional (3/2).

1. American Odds (The Standard)

Used in the US. Centered around $100.

HOW TO READ

Favorites (-): The number is what you must bet to win $100. (e.g., -150 means bet $150 to win $100).

Underdogs (+): The number is what you win if you bet $100. (e.g., +130 means bet $100 to win $130).

2. Decimal Odds (The Sharp Choice)

Used in Europe/Australia. Represents total payout (Stake + Profit).

HOW TO READ

Odds: 2.50

Math: $10 Stake * 2.50 = $25 Total Return ($15 Profit).

3. Implied Probability (The Key)

This converts odds into a percentage chance of winning.

[Image of betting odds probability conversion chart]

CONVERSION FORMULA

For Decimals: (1 / Odds) * 100

Example: 1 / 2.00 = 0.50 (50%)

FAQ

Why do odds vary between sportsbooks?

Bookmakers balance their risk differently depending on the money they have taken in. This creates opportunities for "Line Shopping" (finding the best price).