This is unlike betting the point spread, where the favorite has to beat the spread and the underdog can pay off even if they lose the game. You wager more on the favorite because your cash is less at risk than it would be if you bet on the underdog. You get a bigger reward if you bet on the long shot and they win. Neither is true with the point spread. The point spread is not about playing odds; it is about neutralizing the odds.
Fixed odds are usually displayed in one of three ways—using the decimal or European method, the fractional or English manner or the American money line way. Here is what each looks like:. The total return represents the payout plus your original wager. The odds displayed above are for a team that is not favored. With these odds you get a payout of one dollar for every four dollar bet.
In the money line, the favored team has a minus displayed in from of the wager amount. In making a bet where the expected value is positive, one is said to be getting "the best of it". 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.
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. 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.
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.
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. 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. 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.
Not all fractional odds are traditionally read using the lowest common denominator. Perhaps most unusual is that odds of are read as "one-hundred-to-thirty". Fractional odds are also known as British odds, UK odds,  or, in that country, traditional odds. 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.
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. Moneyline odds are favoured by United States bookmakers and as such are sometimes called American Odds.
Moneyline refers to odds on the straight-up outcome of a game with no consideration to a point spread. 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.
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 and add 1. If the moneyline is negative, is divided by the absolute moneyline amount the minus signed is removed , and then 1 is added. From Wikipedia, the free encyclopedia. This article has multiple issues. Please help improve it or discuss these issues on the talk page. Learn how and when to remove these template messages.
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