You must be wondering how do decimal odds work. Yes, betting and odds will go together like Friday night and a pint down the local. You can’t just have one without the other. In addition, just like there are different things to bet on, there are also different types of odds too.
As we already explain about American odds and fractional odds, it is also important for you to understand how decimal odds work in betting. So, keep reading to find everything that you need.
What are Decimal Odds?
Before we explain how do decimal odds work, understanding the concept of this term is important for anyone looking to have a winning betting experience. Well, decimal odds represents the amount of money that can possibly be won from a bet. Unlike the fractional odds, which are mostly used in the UK, decimal odds are simpler to figure out and calculate.
Decimal odds are interesting because they provide you with an accurate image of your possibilities of winning, allowing you to place well-informed bets. In addition, they are generally represented by a number greater than 1.
For instance, when you see the odds of 2.50, it means that for every unit you bet, you will have the opportunity to win 2.50 units. That also includes both your first stake and the profit that you will make. It is crucial to remember that how do decimal odds work includes your stake.
So, when you calculate the winnings, you must deduct your first bet to determine your profit. This simple method of calculation is one of the many reasons why this type of odds are preferred by many bettors around the world.
Well, if you are wondering the disadvantage of using decimal odds in betting, some people might prefer other odds formats based on their personal preferences or familiarity. However, decimal odds are typically simpler and easy to use.
How Do Decimal Odds Work Actually?
Decimal odds are the most usual way online bookmakers present their odds to bettors. They will take two seconds to calculate. You may simplify your stake by the decimal odds to get your potential payout. A simple formula on how do decimal odds work is stake x odds = payout. Let’s look at the example below.
| You bet on Liverpool to win against Everton at decimal odds of 1.82. If you bet $100 and the Reds are the winner, you will win $182. Keep in mind that the return includes your first stake of $100. So, your net profit on a winning bet will be $82. The math will look like this:Stake ($100) x decimal odds (1.82) = $182 in winnings. |
Also look at another example.
| You back Manchester United, a big underdog against Chelsea, for $100 at decimal odds of 2.75. The math for your bet will look like this:Stake ($100) x decimal odds (2.75) = $275 in profits. You risk $100 to win $274, making a potential net profit of $175. |
On how do decimal odds work, just remember that your first bet is calculated into your potential winnings. When calculating your potential net profit, always keep in mind to account for your first stake.
Furthermore, the break-even odds for decimal are 2.0, as these odds will double your bet. Decimal odds below 2.0 are less than even money odds in betting. It means the potential return will be less than your bet. On the other hand, odds above 2.0 are positive odds. It means your potential return will be more than your bet.
How to Read Decimal Odds in Betting
As you already understood how do decimal odds work, when you pull up a game listing at the best e-wallet Casino Malaysia, you will see the odds for the main bets first. For the NBA and other sports, that is the moneyline, spread, and total odds. It will look something like this.
For the moneyline odds, the lower of the two decimal values shows the favorite, that in this case is the Milwaukee Bucks. Milwaukee gets a 3-point favorite on the spread in a game with a total line of 213 points.
Right next to the spread and total are the odds for those options. The numbers aim to be in the strict range here. For the comparison, odds of 1.91 are the equivalent of -110 in American form.
How to Calculate the Payouts When Betting with Decimals
If you win your bet on how do decimal odds work, your payout will depend on the odds at the time you placed your bet. The total return will be your first bet plus a profit for winning the bet. For decimal odds, you can simply estimate the return:
The potential return on how do decimal odds work: stake * odds = payout
If you bet $100 at odds of 1.9
- $100*1.9 = $190
- The payout is your first bet plus a $90 profit
If you bet $10 at odds of 2.25
- $10*2.25 = $22.50
- The payout is your first bet plus a $12.50 profit
Online bookmakers will show the potential return on the betting slip. However, it is helpful to figure out how to calculate it quickly on your own, as it will help you gauge the different bets by simply looking at the odds.
Probability of Decimal Odds
By learning how do decimal odds work, you can calculate the likelihood of the result of an event obviously happening. For instance:
- 6.0 is accumulated as: 100 / 6.0 = 0.16 or 16% probability
- 2.0 is accumulated as: 100 / 2.0 = 0.50 or 50% probability
- 1.5 is accumulated as: 100 / 1.5 = 0.66 or 66% probability
Conclusion
How do decimal odds work are the most widely used across the continental Europe. It continues to spread to other parts of the world. It is crucial for the modern day sports bettor to figure out decimal odds, because they are used at many online casinos and online gambling sites.
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