What are the odds in a betting company, and how is it formed? The odds are the probability of passing a particular event taking into account the company's commission (bookmaker's margin). For bettors, the odds are also a measure for calculating payouts and profits. In general, the odds reflect the probability of winning the outcome - by it, the players determine how high it is and satisfies the terms of the bet.
Calculating the odds is not easy - bookmakers to do this involves entire analytical departments or use professional statistical software. Calculate the probability of the event by hand is difficult - it requires a lot of time and taking into account a lot of features.
Types of coefficients and calculation methods
If you dig in the economic literature, you can find many types of numerical odds. Betting has three types of odds: American, European, and British. The calculation of the odds is the same in each case, the only difference is their notation in the line. Let's consider each option.
These are the usual decimal odds that reflect the probability of the event in the format 1.53, 2.25, etc. For Nigerian players, it is usual to see European odds in the line of a bookmaker's office. Decimal format bets reflect the probability of the event in a simple form: for example, up to 2.00 the odds of a pass are high, and when the odds are higher than 2.00, the possibility of winning decreases.
To understand how the probability of winning is reflected in the profit, in the case of European odds the calculation is simple.
It is enough to multiply the quotation by the par value of the bet.
The probability is not equal to one - such bets are called return bets. For example, we bet on a total of 2. The teams will score 2 goals. Consequently, the probability of 2 goals when calculating the bet will be equal to 1, and the bet was made on the option more, so the bet amount will be returned to the account. Let's take the standard odds of 2.5. It means the probability of passing equally to 40%. Thus, the victory of the bet with such quotation will provide a net profit in 1.5 of the bet face value: (100 * 2.5) - 100 = 150.
European quotes have a variety - Hong Kong odds. They are less than the European ones by one, for example, if the European one is 4.32, then the Hong Kong one is 3.32. This type of quotation indicates the coefficient for calculating the net profit.
American odds are the most complicated for the perception of Nigerian players. These values reflect the probability of winning in an unusual format - an integer expression and with "+" and "-" signs. Their calculation is as follows:
The positive option reflects the number of winnings from a bet of $100 face value. The negative coefficient shows how much you need to bet to achieve a profit of $100. Example: Real Madrid plays against Barcelona. On the victory of "Real" is a quotation +230, that is, to ensure a profit of 230$ you need to bet 100$. On "Barcelona" is the odds - 165: so, to get a net profit of $ 100 need to bet $ 167.
American odds have two varieties - Indonesian quotations and Malaysian (Malay) quotations. Indonesian is recorded in the line as American, divided by 100, for example, +200 turns into +2.00. Malaysian is also written as a decimal fraction, for example, -0.98. This means that you have to bet $98 to make a profit of $100.
British odds are fractional values written as 5/2, 10/3, etc. Fractional odds are also unusual for Nigerian players, but it is a bit easier to calculate the fractional version of the quote.
For example, the odds are 6/2. It means that for an event the probability of passing is 6 to 2 or 3 to 1 - translated into the European value of the odds is 3. Translate the British quotation in the European value is simple - just calculate the fraction. 6 / 2 = 3. The calculation is done, the coefficient is 3.
How to calculate the winnings?
To calculate the profit of the bet amount you can use a simple formula: P = (N * K) - N, where P is the amount of net profit, N is the par value of the bet, K is the coefficient. Here is an example: a player bets 500 KSh at the odds of 2.40. Substitute the values in the formula for calculating the net profit: P = (500 + 2.40) - 500 = 1200 - 500 = 700. If betting for 500 KSh with odds 2.40 passes, net profit will be 700 KSh.