Betting odds may seem difficult to understand. It is easy to understand betting odds after knowing how probability works. Read on to know more.
If you are new to the world of wagering, you might find the system somewhat complicated. There are a lot of things which go into betting. You need to see how likely you are to win and proceed, which might involve numbers. Cricket betting odds may seem rather complex, but it is the most crucial part of the wagering process. It allows you to predict how likely the thing you have betted on is to happen and how much money can you win.
The whole concept of wagering revolves around probability. Any event or action has an outcome. Probability is the degree of how likely an outcome will occur. Every event will have more than one consequence, out of which you bet on one of the results. Probability helps you bet wisely and not aimlessly. Probability is a number ranging from 0 to 1, with 0 indicating an impossible outcome and 1 showing the highest likeliness of a result. Probability can either be calculated in the form of fractions with numerator and a denominator) or decimals (with decimal points).
Concepts get clear with real-life examples. So let us consider two cases. When you toss a coin, either of the two will happen: you either get a tail or a head. In short, there are two possible outcomes of the event. Hence the likeness of the outcome to be a head is 1/2 (with the denominator representing the number of results). When you roll a dice, there are six possible outcomes. Either you get a 1,2,3,4,5 or a 6. So the probability of either one of the result to happen, say 5, is 1/6, which is 16.67 in the decimal form. Let us understand how this is used to calculate the betting odds.
- Fractional format
- How is the likeliness of an outcome calculated?
Probability is typically calculated in terms of percentage for ease of understanding and simplicity. Consider an event has two outcomes, A and B. Whenever you see a fractional odd, you can calculate the likeness of the game using the given formula: B/ (A+B).
If you see a fractional odd of 1/4, it is calculated as 4/(4+1)= 0.8. Convert this to the percentage format by multiplying 100 to the result, and you get the final chance of the event happening as 80%. This is how betting odds are used to calculate the probability.
- How much money will you win?
The following method is used to calculate the amount of money you will win: for every value of B that you bet, you will win A, plus the return of your stake. In short, ½ for every ₹2 you bet, you will win ₹1.
- Decimal format
These are the calculations necessary to know how likely the outcome of the thing you have betted on will occur, and how you will win money in the fractional odd. There is a different set of formula to calculate winnings to view the betting odds in the decimal format. The formula for winning is (stake*odds)- stake. Therefore 1.50 can be calculated as (₹10*1.50)-₹10 = $5 winnings.
Nowadays the decimal format is widely used than the fractional form as it includes stakes and is easy to understand, making it accessible to everyone. Whereas in the fractional betting odd, the calculation represents only winning and does not include returned stake. Moreover, the fractional format is hard to compute.