Decimal To Fraction Odds

Fractional odds is an odds format typically used in the UK. Decimal odds is an odds format typically used in Australia. To be able to convert from Fractional to Decimal odds you first have to enter a fraction (such as 5/2). Fractional odds are based on the amount of winnings you will receive for a certain stake. Fraction and decimal odds are the most popular format of odds used by the majority of online bookmakers. An example of a fraction odd is 2/1 – this means that for every £1 a customer bets, you will receive £2 if the bet is to win. Likewise, a 2/1 bet in decimal form is 3.00, also meaning that for every £1 bet, you will receive £2 if the.

Fraction To Decimal Odds Calculator
Converting Odds To Decimal
Odds Converter
Decimal To Fraction Odds
Decimal To Fractional Odds Formula
American To Decimal Odds

Fixed-odds betting is a form of wagering against odds offered by a bookmaker or an individual or on a bet exchange. It involves betting on an event in which there is no fluctuation on the payout. In Australia, the practice is usually known as 'SP betting'.

Calculating fixed odds[edit]

It is customary with fixed-odds gambling to know the odds at the time of the placement of the wager (the 'live price'), but the category also includes wagers whose price is determined only when the race or game starts (the 'starting prices'). It is ideal for bookmakers to price/mark up a book such that the net outcome will always be in their favour: the sum of the probabilities quoted for all possible outcomes will be in excess of 100%. The excess over 100% (or overround) represents profit to the bookmaker in the event of a balanced/even book. In the more usual case of an imbalanced book, the bookmaker may have to pay out more winnings than what is staked or may earn more than mathematically expected. An imbalanced book may arise since there is no way for a bookmaker to know the true probabilities for the outcome of competitions left to human effort or to predict the bets that will be attracted from others by fixed odds compiled on the basis personal view and knowledge.

With the advent of Internet and bet exchange betting, the possibility of fixed-odds arbitrage actions and Dutch books against bookmakers and exchanges has expanded significantly. Betting exchanges in particular act like a stock exchange, allowing the odds to be set in the course of trading between individual bettors, usually leading to quoted odds that are reasonably close to the 'true odds.'

'The best of it'[edit]

In making a bet where the expected value is positive, one is said to be getting 'the best of it'. For example, if one were to bet $1 at 10 to 1 odds (one could win $10) on the outcome of a coin flip, one would be getting 'the best of it' and should always make the bet (assuming a rational and risk-neutral attitude with linear utility curves and have no preferences implying loss aversion or the like). However, if someone offered odds of 10 to 1 that a card chosen at random from a regular 52 card deck would be the ace of spades, one would be getting 'the worst of it' because the chance is only 1 in 52 that the ace will be chosen.

In an entry for L'Encyclopédie (the Enlightenment-era 'French Encyclopedia'), Denis Diderot cites a similar example in which two players, Player A and Player B, wager over a game of dice that involves rolling two six-sided dice. Player A wins if the dice add up to 12, of which there is only one possible case. Player B wins if the dice fall in any other combination, of which there are 35 possibilities.^[1] It is mathematically disadvantageous to make a bet if one gets'the worst of it.' Accordingly, for the bet to be 'fair,' the amount each player could potentially lose or gain from the wager should be adjusted, depending on the odds of their success.

Laying odds[edit]

When making a bet in which one must put more at risk than one can win, one is laying the odds. Rational bettors will do so only if the actual chances of an adverse outcome are low enough that the expected outcome even after deduction of taxes and any transaction costs is favorable to the person placing the bet. For example, if one bets $1,000 that it will rain tomorrow and can win only $200 but can lose the entire $1,000, one is laying odds that will rain tomorrow. Laying odds is reflected in the colloquial expression '[I would] dollars to doughnuts' — with which the speaker is expressing a willingness to risk losing something of value in exchange for something worthless, because winning that bet is a certainty.^[2]

Lay betting[edit]

'Lay betting' is a bet that something will not happen, so 'laying $50 on a horse' is betting the horse will not win. Bookmakers sell bets based on the odds of a specific outcome, but lay betting allows the bettor (in some English-speaking countries, the 'punter') to reverse roles with the bookmaker, using odds to sell the opposite outcome to the bookmaker. In this context, 'lay' is used in the sense of 'layman', i.e., a bet sold by someone who does not sell bets professionally.

Types of odds offered[edit]

There are three widely used means of quoting odds:

Fractional odds[edit]

Favoured by bookmakers in the United Kingdom and Ireland and common in horse racing, fractional odds quote the net total that will be paid out to the winning bettor relative to the stake. The term 'fractional odds' is something of a misnomer, especially when visually reinforced by using a slash (as opposed to, e.g., a colon or the word 'to' or 'on') to separate a potential gain from the amount that a bettor must wager in order to receive it upon a win, because the 'fraction' in question represents not the odds of winning or even the reciprocal of the odds of winning but rather the fraction (for any odds longer than 'even money' or chances of winning less than 50%, an improper fraction) of the amount at stake that the upside outcome represents. This fraction may be derived by subtracting 1 from the reciprocal of the chances of winning; for any odds longer than 'even money,' this fraction will be an improper one.^[3]^[4] Odds of 4:1 ('four-to-one' or less commonly 'four-to-one against') would imply that the bettor stands to make a £400 profit on a £100 stake. If the odds are 1:4 (read 'one-to-four', or alternatively 'four-to-one on' or 'four-to-one in favor'), the bettor stands to make £25 on a £100 stake. In either case, against or on, should he win, the bettor always receives his original stake back, so if the odds are 4:1 the bettor receives a total of £500 (£400 plus the original £100). Odds of 1/1 are known as evens or even money.

Not all fractional odds are traditionally read using the lowest common denominator. Perhaps most unusual is that odds of 10:3 are read as 'one-hundred-to-thirty'.

Fractional odds are also known as British odds,UK odds,^[5] or, in that country, traditional odds.

Decimal odds[edit]

Favoured in Continental Europe, Australia, New Zealand and Canada, decimal odds differ from fractional odds by taking into account that the bettor must first part with their stake to make a bet; the figure quoted, therefore, is the winning amount that would be paid out to the bettor.^[4]^[6] Therefore, the decimal odds of an outcome are equivalent to one plus the decimal value of the fractional odds; in the absence of built-in house advantage to cover overhead, profit margins, or (for an illegal enterprise) compensation for the fact that both chances of prosecution and penalties in the event of conviction tend to be higher for bookmakers than for clients, the decimal odds associated with a given outcome would be the decimal expression of the reciprocal of what the offering party assesses to be the outcome's chance of occurring.^[7] Thus, even odds 1/1 are quoted in decimal odds as 2. The 4/1 fractional odds discussed above are quoted as 5, while the 1/4 odds are quoted as 1.25. It is considered to be ideal for parlay betting because the odds to be paid out are simply the product of the odds for each outcome wagered on.

Decimal odds are also known as European odds, digital odds or continental odds and tend to be favoured by betting exchanges because they are the easiest to work with for trading, in this case the purchase and sale of upside and downside risk.^[5]

Moneyline odds[edit]

Moneyline odds are favoured by United States bookmakers and as such are sometimes called American Odds.^[4] There are two possibilities: the figure quote can be either positive or negative. Moneyline refers to odds on the straight-up outcome of a game with no consideration to a point spread.

Positive figures: If the figure quoted is positive, the odds are quoting how much money will be won on a $100 wager (done if the odds are better than even). Fractional odds of 4/1 would be quoted as +400 while fractional odds of 1/4 cannot be quoted as a positive figure.

Negative figures: If the figure quoted is negative, the moneyline odds are quoting how much money must be wagered to win $100 (this is done if the odds are worse than even). Fractional odds of 1/4 would be quoted as −400 while fractional odds of 4/1 cannot be quoted as a negative figure.

Even odds: Even odds are quoted as +100 or −100. Some but not all bookmakers display the positive symbol.

Odds conversion[edit]

To convert fractional odds to decimal, take the fractional number, convert it to decimal by doing the division, and then add 1. For example, the 4-to-1 fractional odds shown above is the same as 5 in decimal odds, while 1-to-4 would be quoted as 1.25.

The method for converting moneyline to decimal odds depends on whether the moneyline value is positive or negative. If the moneyline is positive, it is divided by 100 and add 1. Thus, +400 moneyline is the same as 5.0 in decimal odds. If the moneyline is negative, 100 is divided by the absolute moneyline amount (the minus signed is removed), and then 1 is added. For example, −400 moneyline is 100/400 + 1, or 1.25, in decimal odds.

Decimal	Fractional	Moneyline	Win% (to break even)	Return (minus stake)
1.01	1/100	−10,000	99.01%	1.00%
1.11	1/9	−900	90.00%	11.11%
1.33	1/3	−300	75.00%	33.33%
1.50	1/2	−200	66.67%	50.00%
2.00	1/1	±100	50.00%	100.00%
3.00	2/1	+200	33.33%	200.00%
4.00	3/1	+300	25.00%	300.00%
10.00	9/1	+900	10.00%	900.00%
101.00	100/1	+10,000	0.99%	10,000.00%
${displaystyle x+1,}$	${displaystyle x,}$	${displaystyle -{frac {100}{x}}}$	${displaystyle {frac {100}{x+1}}%}$	${displaystyle left(100xright)%}$
${displaystyle x+1,}$	${displaystyle x,}$	${displaystyle +100x,}$	${displaystyle {frac {100}{x+1}}%}$	${displaystyle left(100xright)%}$

References[edit]

^'Wager'. University of Michigan Library. Retrieved 1 April 2015.
^Listening to America, Stuart Berg Flexner (Simon and Schuster, New York, 1982).
^'Betting School: Understanding Fractional & Decimal Betting Odds'. Goal. 10 January 2011. Retrieved 27 March 2014.
^ ^a^b^cCortis, Dominic (2015). Expected Values and variance in bookmaker payouts: A Theoretical Approach towards setting limits on odds. Journal of Prediction Markets. 1. 9.
^ ^a^b'Betting Odds Format'. World Bet Exchange. Archived from the original on May 2, 2014. Retrieved 27 March 2014.
^D., Chris. 'What is Fixed odds betting and Due Column betting?'. TBR. Retrieved 27 March 2014.
^'Fractional Odds'. betstarter.com/. Archived from the original on April 2, 2014. Retrieved 27 March 2014.

External links[edit]

Retrieved from 'https://en.wikipedia.org/w/index.php?title=Fixed-odds_betting&oldid=1004157818'

< Return to bet types explainedGo to how bookmakers make money >

$Decimal to fractional odds formula$

There is a lot of jargon used in sports betting and it can be quite confusing, especially for a novice, but once you get to grips with the basic terminology, your betting experience will be enhanced. The first thing that any punter needs to do is understand how the odds work and what they mean.

Many betting websites - including the Betfair Exchange - now use decimal odds as standard, so let’s take a closer look at this popular format.

Fraction To Decimal Odds Calculator

The purpose of sports betting odds

Odds are a numerical way of describing the probability of an outcome occurring. The odds are calculated by bookmakers like Betfair and Paddy Power in a way that allows them a small profit margin. For example, on a 50/50 coin toss, a bookmaker might offer odds of 49/50. If they get an equal amount of money bet on heads and tails, they would be guaranteed a small profit whatever the outcome.

What are decimal odds?

Decimal odds are a way of displaying odds in an easy to understand way.

In the above example, where the bookmaker offers odds of 49/50 on a coin toss, the odds are shown as a fraction. If we showed the same odds in decimal format, they would look like this:

Decimal odds: 1.98

So, if a punter placed a stake of £1 on this bet and it was successful, they would receive £1.98 back, achieving a profit of 98p.

In decimal odds, odds-on selections will be expressed as values between 1.0 and 2.0

Many websites use the decimal format as standard when displaying the prices of sporting events. In fact, decimal odds are commonly used all over Europe. They are popular because they are so easy to understand, displaying the total return from a 1 unit stake.

As the unit stake is always included, decimal odds always have a value greater than 1.

Here is another example of how simple it is to read decimal odds:

Odds: 6.0
Stake: £1
Winnings: £5
Total return: £6

Decimal vs. fractional odds

Punters in the UK and Ireland might not be as familiar with decimal odds. In those regions, it is more common to see fractional odds such as 5/1 or 9/2. Fractional odds basically describe the winnings from a theoretical stake.

Fractional odds example:

Odds: 5/1
Stake: £1
Winnings: £5
Total return: £6

Where the odds are 50/50, the odds are described as Evens rather than 1/1.

The advantage of decimal odds

Fractional odds can sometimes be confusing as the calculation can produce very large numbers. For example, where the decimal odds are 1.46, the fractional equivalent would be 23/50. In this case, it is much easier to calculate the return from a £1 stake by using the decimal odds format.

$Decimal to fraction odds$

In addition, fractional odds can be confusing when the probability is very high. For example, when decimal odds fall below 2, the fractional equivalent suddenly takes a different appearance as the second number becomes larger than the first number. Therefore, it is possible to have fractional odds of 2/1 and 1/2 and this can be a little confusing for novice punters.

Decimal vs. moneyline odds

Converting Odds To Decimal

Moneyline odds (also known as US or American odds) are used by bookmakers in America. The odds are presented in either a negative or positive format depending on the probability.

Moneyline odds are used by bookies in America

Positive moneyline odds show how much would be won from a $100 stake. In a sporting event involving two teams, the underdog always has a positive moneyline.

Positive moneyline example:

Odds: +500
Stake: $100
Winnings: $500
Total return: $600

Negative moneyline odds show how much would need to be staked to win $100. In a sporting event involving two teams, the favourite always has a negative moneyline.

Example

Odds Converter

Odds: -500
Stake: $500
Winnings: $100
Total return: $600

If there is no clear favourite and the odds are 50/50, the moneyline is displayed as +100. Using the positive rule, a $100 bet would then return a $100 profit.

Converting moneyline odds to decimal or fractional odds is not always easy. However, the tools below can be used as a handy guide.

Why is understanding odds important?

Understanding how to read odds is a vital part of sports betting. If you do not know how to read the odds, you will never know if you are getting good value or what your potential returns might be.

In theory, decimal odds are the easiest to understand and many punters have switched to using decimal odds after years of using the fractional format. Decimal odds can be read at a glance and do not require any tricky calculations.

Most betting websites - including Betfair and Paddy Power- have a settings menu where you can change the way that odds are displayed. This means you can choose the option that suits you best. But even if you prefer to use fractional odds, it still makes sense to learn how to read decimal odds as they are becoming more widely used across the internet.