

March 15, 2013 at 4:07 pm #94941
It’s an antiquated, confusing and often inprecise system that could easily be translated into % chance of winning.
It has to do with is you put up X amount of $ (the second number) if you win you get Y amount in winnings (the first number).
Odds almost always though come with a share for the house, which should never be part of the equation unless one is going through a bookie.
ReplyCopy URLMarch 15, 2013 at 4:18 pm #94943If you grow up around racetracks, one can sort of get how they relate.
The formula:
Fractional odds
Fractional odds are generally the most traditional form of expressing betting odds. They are a simple reflection of the return you will receive for a particular amount bet. So for example, the odds of 5/2 (expressed as 5 to 2) means that for every 2 units that you bet, you will receive 5 back.
To convert fractional odds into their respective probabilities, we make the following calculation.
So in our example of odds of 5/2.
Implied probability = 2 / (5 + 2)
Implied probability = 2 / 7
Implied probability = 0.286
Multiplied then by 100 to express as a implied probability percentage of 28.6%
ReplyCopy URLMarch 15, 2013 at 4:51 pm #94945Since the interest with so many events – sports in particular (hello NCAA) rotates around people betting money, a lot of people like to see it this way, so they like to see the risk/benefit ratio as clearly as possible.
Curiously, football better has gone more into the line (the favorite and the margin of victory) because it puts everything into a 50% level of likelihood, much easier to understand.
I am a strong advocate of translating into % chance because it is much easier to grasp, and expresses the relationships among the contenders much more clearly. And you can be sure the person creating the odds actually comes up to 100%, which as I said quite often odds don’t do.
ReplyCopy URLMarch 16, 2013 at 7:30 pm #94948If you grow up around racetracks, one can sort of get how they relate.
So in our example of odds of 5/2.
Implied probability = 2 / (5 + 2)
Implied probability = 2 / 7
Implied probability = 0.286
Multiplied then by 100 to express as a implied probability percentage of 28.6%
This is the first time I’ve understood what they mean. It’s actually so simple.
ReplyCopy URLMarch 16, 2013 at 7:57 pm #94949If you grow up around racetracks, one can sort of get how they relate.
The formula:
Fractional odds
Fractional odds are generally the most traditional form of expressing betting odds. They are a simple reflection of the return you will receive for a particular amount bet. So for example, the odds of 5/2 (expressed as 5 to 2) means that for every 2 units that you bet, you will receive 5 back.
To convert fractional odds into their respective probabilities, we make the following calculation.
So in our example of odds of 5/2.
Implied probability = 2 / (5 + 2)
Implied probability = 2 / 7
Implied probability = 0.286
Multiplied then by 100 to express as a implied probability percentage of 28.6%
Damn, dude. You must be a math wiz.
ReplyCopy URL
How do ODDS work?
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