Anyone new to sports betting will have a big decision to make straight away about the odds format they want to use. Selecting an odds format is usually based on personal preference. However, that preference is largely determined by just how easy the odds format is to understand.
Decimal odds are considered by many punters to be the easiest betting odds format. It is easy to understand how the odds work compared to the complex the American odds system or traditional fractional odds. In fact, many bettors around the world are turning to decimals today. It is claimed that decimals are the most used across the world by punters. If you are using decimal odds to wager on sports, you may want to make a change.
So, how do decimal odds work? Let's take a deep dive into the world of decimal odds to explore how they are used and how to read them.
What are Decimal Odds?
Decimal odds are sometimes called European odds. This is due to many bettors in countries around Europe preferring to use them. Due to the simplicity of decimal odds, younger bettors have turned to them.
Oftentimes, fraction odds are preferred in the United Kingdom and Ireland, while American odds are used in North America. These regions all have their preference for the way in which odds are displayed. You will likely find decimals in other countries including Australia and Canada.
Punters in these countries prefer decimal odds due to their simplicity. Decimal odds represent the amount of money you win for every £1 wagered. The decimal number displays the total payout you will receive, rather than just the profit. The stake, which the bookmaker gives back following a winning bet, is calculated in the odds.
How do you read Decimal odds?
Understanding decimal odds is rather easy and this example will help you grow your knowledge.
Let's look at an example from the English Premier League.
If you wager £1 on Liverpool, who are the underdog in this example, your potential returns would be £3. The returns include the stake. Therefore, the profit would be £2.
A wager of £1 on Manchester City at odds of 1.3 would return £1.30 in total payout. The payout includes your £1 stake and £0.30 in profit.
How Do You Convert Decimal odds into Potential Winnings?
The formula for decimal odds is as follows:
Stake x Decimal Odd Number = Total payout (stake + profits)
Due to the simplicity, many bettors love using decimal odds to bet on sports.
Do Decimal Odds Calculate Probability?
You can calculate implied probability using decimal odds. By using the equation below, you can convert decimal odds to probability for better insight into a potential bet.
(1/ decimal odds) x 100 = probability
For example, using our Manchester City versus Liverpool situation from above. If we want to calculate the probability of Liverpool winning the match, it would look like this:
(1 / 3.00) x 100 = 33.3%
How Betting Odds Work
There are a variety of different betting odds available to use. Online betting sites give you the opportunity to select the odds display you prefer. In some cases, the odds format you use is a personal preference.
There are some more complex odds methods that may take you some time to learn. Decimal odds are arguably the easiest to use.
What's the Difference Between Fractional Odds and Decimal Odds?
Fractional and decimal odds are popular in the UK and Europe. Fractional odds is a ratio of the profits won compared to the amount staked. For example, odds of 2/1 means you will win £2 in profits on a £1 bet.
Fractional Odds or Decimal odds?
Fractional odds can be difficult to understand. However, many punters still use fractionals as they are a traditional way to express the price of sporting events. One of the great aspects of fractional odds is it tells you the profit you will receive on a winning a bet.
The decimal format expresses the total payout (profits plus stake). Therefore, you will need to subtract the initial stake to understand the full profit you made on a wager.
How Do You Convert Decimal odds into Fractional Odds?
Converting fractional odds to decimal odds is simple. Just divide the top number by the bottom number and add one. For example, if you have the odds of 2/1, just divide 2 by 1 and add 1.
(2/1) +1 = 3.00
What's The Difference Between Decimal Odds and American Odds?
American odds are far more complex than decimal odds. American odds are based on winning or wagering £100 on a bet. The odds are represented by a plus (+) or minus (-) sign. The plus and minus signs indicate which team is the favourite and the underdog.
Green Bay Packers -120
New York Giants +300
The minus sign indicates the Packers are the favourite. If you wager on the Packers to win, you would need to bet £120 to make £100.
The plus sign shows us that the Giants are the underdogs. A £100 wager on the Giants to win would result in a £300 profit if they win.
What is Moneyline odds?
Moneyline odds are the same as American odds. The two terms are often used interchangeably by some punters and bookmakers.
How Do You Convert Decimal odds into American Odds?
There are two formulas for converting American odds to decimal odds. There is a slightly different formula for calculating odds on the favourite and the underdog.
To convert decimal to American odds on the underdog (+ sign): (American odds / 100) + 1 = decimal odds.
To convert decimal to American odds on the favourite (- sign): 1 - (100 / - American odds) = decimal odds.
What is the Difference Between Decimal odds and Implied probability?
Decimal odds display a simple value that can be multiplied by your bet amount to calculate the potential profit and overall return.
Implied probability explains what the bookmaker expects the outcome of an event to be. Implied probability is also known as implied odds.
For fractionals: denominator / (denominator + numerator) x 100 = probability
How Do You Convert Decimal Odds Into Implied Probability?
To convert decimal odds into implied probability, use the following equation.
(1/ decimal odds) x 100 = probability
For example, using the above example on Manchester City (1.3) versus Liverpool (3.00):
(1/3.00) x 100 = 33.3%
Which Countries Use Decimal Odds?
Decimal odds are popular throughout mainland Europe. Oftentimes, the odds format is known as European odds. Australia, Canada, and New Zealand also use decimal odds.
Displaying odds in this format makes it simple to understand the amount of money you will earn from a bet of just £1. The simplicity is the main reason punters use decimal odds rather than fractional (traditional odds) or American odds.
Do Betting Sites Give you the Option to Use Decimal Odds?
Sports betting websites offer you the chance to change the odds display. Bookmakers want you to use the display that is most comfortable. Therefore, you will be able to go to the settings and change to the odds display format of your choice.
Which Is the Best Odds Format?
There is no best or worst odds format. However, decimal odds work perfectly for anyone wanting a simple, straight to the point method of knowing how much money they will receive for a winning bet. Decimal odds format also displayed the total payout of money staked and profits compared to fractionals which is just the profit.
American odds are more difficult to understand compared to decimal odds. Therefore, many people may choose decimal format over American odds. Punters must be familiar with the intricacies of American odds and their complexities before using them.
Decimal Odds In Sports Betting
Decimal odds take seconds to calculate the payout. In sports betting, seconds can mean everything when you are searching for the best odds. In-game betting odds can change in a flash and being able to calculate the odds quickly is important.
The breakeven mark for decimal odds is 2.00. These odds will double your initial stake. Decimal odds lower than 2.00 are under even money odds. The potential payout will be less than your unit stake. If the odds are higher than 2.00, your potential payout will be more than your stake.
Decimal odds are the world's most widely used betting odds format. As younger people begin to wager on sports, decimal odds are likely to grow.
Fractionals are the traditional method for displaying prices, but newer bettors could favour the decimal format. Nearly all online bookmakers and betting exchanges will offer you odds in decimal format.
It may take a little time to get to grips with the format, but once you do, it will be a simple way to calculate your potential returns.