Betting odds are an indication of the probability of an event occurring according to a Bookmaker or Betting Exchange:
- High odds are an indication that the event is less likely to occur
- Low odds are an indication that the event is more likely to occur
These odds can be displayed in different formats and the ones that we are most likely to come across are fractional, decimal and American.
FRACTIONAL ODDS
Fractional odds are probably the odds format that we are most familiar with, prior to matched betting, and are represented by two numbers split by a forward slash for example:
4/1
Fractional odds show you how much you are going to win related to a stake amount. In the 4/1 example, the first number (4) indicates how much you would win and the second number (1) indicates how much you would need to stake in order to win that amount.
So at odds of 4/1 you would win £4 for every £1 you stake.
We don’t really use the fractional odds type when matched betting however it is the most likely default setting for UK bookmaker websites.
You will often have to change the settings on the bookmaker site from fractional to decimal display in order to calculate your matched bets.
DECIMAL ODDS
Decimal Odds are the odds we use all of the time when we are matched betting. Decimal odds are displayed in numeric form for example 5.0 and allow you to calculate how much money will be returned to you if your bet wins.
To work this out you just multiply the stake by the decimal number and that is how much you will receive back.
So if the odds are 5 and the stake is £1 you would receive £5 back inclusive of your £1 stake as 5 x 1 = 5.
At first, when you start matched betting, decimal odds may seem a bit confusing due to the fact that we have become so accustomed to fractional odds. Once you get used to them, however, they are actually a far more user-friendly odds system, allowing you to quickly work out your returns.
AMERICAN ODDS
These are the type of odds we are probably most unfamiliar with and also least likely to use. They work on a positive and negative basis and represent how much a bettor will have to wager to win 100 units of currency. I’ll use pounds as the currency in the following examples:
If the odds are negative, for example, -120 this means that to win £100 you would need to wager £120. Therefore if the selection wins you would receive back £220 consisting of your £100 winnings and your £120 stake. Essentially negative means the selection is favourite or odds on.
For underdogs the odds will be positive, so +220 for example, means that if you wagered £100 you would receive £220 in winnings plus your £100 stake back if the selection wins.
You are unlikely to encounter American odds very often in your matched betting journey but it is useful to understand the mechanics behind them just in case.
If at any point you need to convert odds, maybe you cannot find the change odds to decimal setting on a site, for example, you can use the Outplayed's Odds Converter and Probability Calculator.