The world of sports betting can be quite a tricky place for someone who is just entering into the segment. Even the odds offered on each market can sound bewildering under some circumstances. This is due to the different formats employed for conveying the probability of an outcome. Thankfully, there are a ton of ways to take the odds provided by a bookmaker and convert it into something meaningful. One of the best solutions would be to use a betting calculator.
What are betting calculators?
The betting calculator is a tool or software that is used for knowing the wins that a particular stake could generate at certain odds. This helps in identifying the risk and reward ratio before deciding to place bets. Since there is not a lot of complexity involved in these calculators, there is no reason for punters to start using these calculators and make better decisions. Furthermore, the calculators are also not very difficult to reach, as many are web-based tools. These calculators come with the advantages of being able to support different types of odds.
As a punter, one needs to be aware that there are three major types of odds that are currently used across the globe. They are:
- American odds
What are decimal odds?
This is one of the most common types of odds used in the sports betting segment. It is used to denote implied probability just like every other odds format. However, it has the inherent advantage of being extremely simple. The decimal odds is a direct representation of the returns to a punter when they wager £1. This also represents the total return given to a punter unlike American odds or fractional odds. The need to use a calculator or converter with decimal odds is far reduced.
For example, Chelsea are up against Arsenal in the Premier league encounter. The blues are given a price of 1.70 in the decimal odds format. It effectively that for every £1 wagered on Chelsea, the punter will receive £0.70 along with the stake. Thus, the total returns will be £1.70.
What about the fractional odds format?
The fractional odds primarily find the use in Great Britain. The primary disadvantage of fractional odds would be the complexity in finding out the actual returns, although it is not too difficult once users get the hang of it. Apart from being used heavily in Ireland and the UK, fractional odds are also common in some sports. In order to understand the returns in fractional odds, users have to do some calculations.
The bet has to be multiplied by the numerator. Then, it should be divided by the denominator. For example, a punter is wagering £5 on a match between Chelsea and Arsenal in which Chelsea are given odds of 3/2. Now, the bet (£5) is multiplied by the numerator (3). The result has to be divided by the denominator (2) to reveal the wins, which in this case, would be £7.50.
An explanation for the American odds format
The American odds format, unsurprisingly, is one that is followed by American sportsbooks. These begin with the assumption of getting $ 100 for a bet. If the punter is going for a favourite team, the odds will be represented in negative with a minus sign. This will effectively be the money that has to be risked for winning $100. For example, a punter wants to back Dallas Cowboys in a match and they are given a price of -140. This means that Dallas Cowboys are the favourites and punters need to come up with the risk of $140 to get a return of $100. If the anticipated result turns out, punters will be picking up $240 in total.
On the contrary, the underdogs will be given a plus sign format. This will be the money that they can win for every $100 which is under risk. One of the prominent uses of an odds calculator will be in helping punters know the potential returns in American and fractional odds format. Since decimal structure is very similar, users are unlikely to have any trouble on this front.
What about implied probability?
The implied probability is one of the crucial factors when determining whether to go with a bet or not. It is ultimately used to denote the probability of success for a team. If an American odds format is used to denote odds of -140 for a team, it effectively denotes that the team has a 58.3% probability of success. If the odds are +120, it means that the team is an underdog with a 45.45% likelihood of success. At the end of the day, the total of these two probabilities will ultimately be more than 100%. This is down to the bookmaker margin which is brought into the picture.
The use of bet converters and calculators
As it is easy to see from the extended list of betting types, odds types, and factors that define prices of odds, the world of sports betting can be a tricky place for the uninitiated. It is important to have the right set of tools to come out successful in sports betting. One such tool will be the betting calculator, which comes in handy when trying to understand the probability of success for a particular event. Only if the risk-reward ratio comes to be in a decent position can punters go with the bet. The calculators and converters come in handy in this regard, as one can merely that the numbers and understand the feasibility of a position within a few seconds. The bet amount will ultimately determine the risk at stake. Rather than having to make numerous calculations to understand the bet, one can just use this converters and calculators to take a better stance.