Understanding Betting Odds: Fractional, Decimal, and American Explained
Odds are everything in the sports betting market, and understanding how they work is crucial for every bettor. Bettors use odds to calculate the probability of a particular outcome happening and can determine whether or not they place a bet at Malawi betting or other platforms. However, different sportsbooks use varying formats to represent their odds.
The three main types of odds you’ll find in online sportsbooks include Decimal (European), fractional (British), and American (moneyline) odds. These formats differ in how they present their numbers, but there’s no difference in the payouts. Here’s how these odds work when betting on sports.
Fractional (British odds)
Fractional odds are popularly known as British or traditional odds, and they express the numbers as a fraction. These odds typically look like 4/1, meaning that you will win $4 plus your original stake for every $1 you wager.
The beauty of British odds is that they present a very simple way of calculating potential losses or profits. To calculate the amount of money you can win when betting with fractional odds of 4/1, for example, simply multiply the amount you stake by the fraction on the left-hand side of the odds and divide it by the fraction on the left. That means if you bet $20, your potential win will be $20 x 4 ÷ 1 = $80.
Conversely, fractional odds of 1/4 would mean that you will win only $1 for every $4 you bet. If you place a $20 bet on such odds at a site like Betway, then you stand to win 20×1 ÷ 4 = $5 when successful.
Decimal (European) odds
Decimal betting odds are expressed by a number with a decimal point. For example, you can find 2.5 odds expressed as 2.50. To calculate the potential return of your bet using decimal odds, simply multiply your stake amount by the odds given.
Let’s assume you want to calculate the potential return for a $100 bet on Manchester United at 2.67 odds. Simply take the odds and multiply it with the stake (2.67 x $100 = $267). Since that amount includes your $100 stake, your potential profits for such a bet would be $267-$100 = $167.
American (moneyline) odds explained
Moneyline odds are the most popular type of betting odds among US betting platforms. With a moneyline bet, you simply bet on which side you think will win the match. The favorite team is denoted using a number with a minus (-) sign, indicating how much you need to wager to win $100. The number with a plus (+) sign denoted the underdogs and indicates how much you will win if you wager $100.
For example, if you bet on Chelsea at -150 odds, you would need to bet $150 to potentially win $100. If you bet on their opponents at +250, a $100 bet potentially earns you $250 when successful. Your original stake is returned with your winnings in both cases. That means the bigger the gap between the underdog and favorite odds, the higher the chances of the favorite winning.
