You should learn about betting odds if you are new to the sport. This is crucial because it will allow you to determine how likely an event will occur and your potential winnings. It may seem confusing at first. This betting odds explained guide will help you understand.

The odds are the ratio of the stakes made by the parties to a bet or wager. So, odds of 3:1 mean that the bookmaker stakes three times as much as the bettor.

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What is Probability?

Betting is a way to predict the outcome of an event. If you are correct in your prediction, you will win.

There are certain outcomes for any event. For example, let’s say you roll a die. Six possible outcomes can be obtained if someone rolls a die. If you place a wager that someone rolls a dice, there are six possible outcomes.

To calculate probability, use betting odds

If you see two numbers separated with a trailing dash, such as. Fractional odds are when two numbers are separated by a trailing slash, i.e. 4/1. This allows you to calculate the likelihood of an event occurring using a calculation. Let’s just replace the numbers by letters, i.e. 4/1 becomes A/B. Here’s how it works: Probability (%) = A+B.

Hooray! We are making great progress. We can now predict the probability (or likelihood) that what we are betting on will occur by dividing a fraction. Let’s now see how much money we can win by betting on odds.

To Calculate Winnings, Use Betting Odds

You can calculate the amount of money you’ll win by placing a wager. Let’s continue with the previous examples, but this time we will replace the numbers for the letters. 4/1 is now A/B. Simply put, for every B value you place, you win A plus your stake.

What about Decimals?

Although decimals are more common on exchanges like Betfair and, all the major betting sites offer this option. These are an alternative to viewing betting odds in fraction format and are, in our opinion, easier to understand. Here’s how it works: winnings = stake * odds. Let’s show you how it works with some examples

Cheltenham Betting Example

The Cheltenham Festival will take place from Tuesday 15th to Friday 18th March. On the last day, the ever-popular Cheltenham Gold Cup will be held.

Below is an example of a Bet for the Cheltenham Festival.

Al Boum Photo wins the 2022 Cheltenham Gold Cup

Al Boum Photo won both the 2019 and 2020 Cheltenham Gold Cups, but finished third in last year’s race. Minella Indo beat him in an entertaining battle.

Al Boum Photo has proven that he is capable of taking on the largest stage. And at 8/1 (with Bet365), it is too good a deal to pass up.

Example of betting

Here’s a quick example of a wager on a football match to make it easier for you to grasp all the information.

You might be able to see the odds that Arsenal will beat Liverpool 2-0 if you back them.

Instantly calculate how much you could win if your stake were PS10

Decimal Odds vs Fractional Odds

While one way may not be better than another, there is a growing trend towards decimal odds. Fractional odds were used in the UK for centuries, particularly at racecourses and high streets. Two key differences exist.

Decimal odds are generally easier to comprehend. This is why horse racing has been made more accessible to average punters to help attract more people. Ten years ago, the odds of you going to Cheltenham were displayed in fractional odds. They are now largely in decimals.

A second difference is that fractional odds do not represent winnings and include the stake, whereas decimals do. The popularity of betting exchanges like Betfair or Ladbrokes was a major catalyst for the transition from fractional odds into decimals.

It is difficult to increase or decrease odds of slight changes without creating large fractions. These numbers are difficult to calculate for punters and do not provide a good way to explain betting odds.

In Summary

The probability that an event will occur and thus allow you to calculate how much money you’ll win if you place a bet. For example, if you place a bet of 4/1, your odds are that you will win PS4 for every PS1 you wager. This is 20% of the chance. The odds are calculated as 1 / (4 + 1) = 0.20.