Learning how odds work is a key aspect of sports betting. By understanding the different types of betting odds, including American, fractional and decimal formats, you can better assess a wager’s potential payout.
Also, be sure to monitor odds fluctuations as market sentiment can influence them. By keeping up with these changes, you can capitalize on value opportunities and maximize your profitability.
What is an Oddsmaker?
Oddsmakers are the people in charge of pricing markets and calculating the expected chances that an event will occur. They take into account recent form, player availability, head to head records and home advantage before determining the odds they will present on betting sites.
In modern times, the process of setting sports betting odds has evolved. Instead of huddled on chalkboards in Las Vegas backrooms, contemporary oddsmakers use sophisticated software to compile and set lines. But the chief goal remains the same: to mitigate a sportsbook’s risk.
Types of Odds
There are several different formats of odds, and each has its own unique characteristics. Regardless of the format, betting odds are a measure of how likely a sportsbook thinks an outcome is to occur. The odds may also be expressed as a percentage.
The three types of odds are fractional, decimal, and moneyline (also known as “American” odds). Each format has its own unique characterisitcs, but they can all be converted to an implied probability percentage. Understanding the math behind these odds is a key step to successful sports wagering.
Odds formats
The different odds formats may seem confusing at first, but they are simply different visual representations of the same information. Whether you’re betting on a horse race or a football game, the odds will be displayed in one of three common formats: fractional, decimal, and American.
The American format is sometimes referred to as moneyline odds, and it’s the most popular option in North America. This format is usually accompanied by a minus (-) or plus (+) sign, which indicates the favored and underdog teams. There are several tools available to make conversions between these odds formats, but you can also use the table below to do the calculations by hand if you prefer.
Spread bets
Spread bets are wagers that offer a potential payout based on the amount of money staked. They are often easier to understand than fractional or American odds, as they show the total payout including your initial stake.
The numbers next to a team’s name on a point spread indicate how many points the underdog needs to win or lose by for your bet to come in. Sportsbooks sometimes add a “hook” to a point spread, which is designed to prevent pushes. This is how they make money on bets, and it’s important for bettors to know how this works. The hook is usually a half point.
Moneyline bets
Moneyline bets are a type of sports betting wager that relies solely on the outcome of a game or match. They can offer lower payouts for favored teams, but can be a great way to add excitement to a wager and potentially make more money.
Unlike against-the-spread and over/under bets, moneyline bets are simple to place and do not require an understanding of point spreads or line movement. However, it is still important to understand how odds work and how to calculate implied probability in order to make the best bets. In addition, you can also use moneyline prop bets to add even more excitement to your wagers.
Parlay bets
Parlays combine multiple wagers into a single ticket. Each individual bet, called a leg, must win in order for the whole parlay to grade as a winner. Parlays are a popular wager type, and can be made with different types of bets, including team props and player props.
However, parlays carry more risk than individual bets, as one lost leg can result in a loss for the entire parlay. Therefore, they should be used sparingly. Regardless, they offer bettors the chance to earn a sizable payout on a single game. Parlays are also a good way to avoid paying the sportsbook’s vig, or “juice.” Vig is the commission that sportsbooks charge on bettors’ winning wagers.