Addressing Different Odds Formats – Which One is Right for You?
Posted by Harry Kane on Tuesday, February 20, 2024
If you regularly frequent a licensed sportsbook, you’ll know that many now use odds widgets to help you toggle between different formats. This means that you can quickly switch between decimal, fractional and Amercian odds formats, depending on your own personal preferences and experience.
Of course, each of these formats presents differently and relays odds in variable ways. Some are also easier to read than others, whether you want to calculate the optimal stake amount or determine your potential returns. So, let’s take a closer look at the most popular odds formats and how to read them!
Getting Started – Understanding Fractional, Decimal and American Odds
Let’s start with the basics: it’s important to understand the mechanics of each odds format and the precise information that they relay. Remember, each format is distinctive and easy to recognise at first glance, but reading associated betting lines successfully will require a little prior knowledge and understanding.
Fractional Odds
Fractional odds are most common in the UK. They feature two single numbers separated by a slash, with the former relaying how much you can win in relation to the latter (your stake amount). This is widely considered to be one of the most simplistic odds formats, especially when wagering with rounded numbers such as £1, £10 or £100.
For example, let’s say that you wanted to bet on the Premier League clash between Arsenal and Chelsea. The Blues are priced at 11/2 to secure a surprise away win, so you can win £11 for every £2 staked successfully on this outcome. If you stake £1 successfully on this outcome, you can bank a pure profit of £5.50.
Conversely, a £10 stake would deliver a return of £55. However, it’s important to note that fractional odds project your return exclusive of your initial stake, so you’ll need to add this to any profit that you earn. So, if you earn £55 in relation to your £10 stake, you’ll see £65 returned in total.
Decimal Odds
Decimal odds are commonly seen in Ireland and Europe, and occasionally used in the UK. This format is incredibly straightforward and easy to read, as it features a single number to two decimal places and tells you precisely how much you’ll win for every £1 successfully staked. This will be inclusive of your original bet.
Using the same example, Chelsea are priced at 6.50 to defeat Arsenal at the Emirates Stadium. So, a single £1 bet will drive a total return of £6.50. If you stake £5 on this outcome and the Blues prevail, you can multiply 6.50 by five to create a payout of £32.50. When wagering £10, you’ll bank £65.50 and a significant return on your stake.
As you can see, you simply need to multiply the decimal odds value by your stake amount to calculate potential returns. At the same time, it’s easy to convert fractional into decimal odds, simply by diving the first figure by the second and adding 1.00. So, 11/2 becomes 11 divided by two (creating a value of 5.50) and adding 1.00 creates a value of 6.50.
American Odds
While decimal odds may be the easiest to read from the perspective of calculating returns, American odds can lay claim to being the most complex (especially in the case of negative prices). This is because they feature ‘plus’ and ‘minus’ signs alongside three-digit numbers, with these symbols indicative of betting underdogs and betting favourites respectively.
If you back a betting underdog with a plus sign, the accompanying number tells you how much you can win for every £100 staked successfully. However, betting on a favourite with a minus sign requires you to read each line and accompanying number differently, as this digit lets you know the amount you need to stake to win £100.
In Amercian odds, Chelsea are priced at +550 to defeat the Gunners. So, a straight £100 bet on the Blues would earn you £550 if successful, exclusive of your initial stake. If you successfully back £50 on the Blues to win at this price, you’ll bank a pure profit of £275. If you stake £10 on this outcome and Chelsea romp home, you’ll earn a return of £55.
Which Odds Format is Right for You?
Now that you know how to read the various odds formats, it’s important to determine which one you’re most comfortable and familiar with. This will vary depending on your preferences, experience and the information that you want to garner from betting lines, while there are several considerations when choosing the right odds format for you!
– What Do You Want to Garner from Odds? The odds format that you prefer will depend in part on how you intend to wager and the information that’s most important to your bet. For example, if you want to optimise profit by backing betting underdogs, positive American odds are recommended as they make it easy to quickly identify underdogs and your potential return. Decimal and fractional odds offer greater merit if you’re focused on value betting and minimising losses, as they make it easier to calculate the implied probability of certain outcomes.
– What are Your Preferred Betting Markets? On a similar note, much will depend on your preferred betting markets. For example, American odds are great when backing underdogs in the win market. However, reading spread and totals betting lines in the format can be challenging, as they also feature plus and minus signs depending on the outcome in question. In this case, you may prefer decimal odds, which are easier to read at a glance and can drive more informed selections.
– Are You an Analytical Sports Bettor? If you bet regularly on sports and have an analytical approach to identifying markets and outcomes, it’s probably better to use decimal odds. This is due to the simplicity of the format and how easy it is to read, not to mention the fact that all returns are calculated inclusive of your stake amount. Remember, it’s also easy to calculate the implied probability of specific outcomes occurring when using decimal odds, so this format enables you to quickly identify high value bets and make informed selections.