# How Do Betting Odds Work

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Betting is one of the oldest activities in the world. Over time, it has been integrated into several games and sports. Currently, there are so many betting platforms available in the betting industry. The implication of this is that it has resulted in the availability of many bonuses, promotions, and features targeted to attract players or bettors. But betting is not limited to bonuses and promos, it is mostly all about betting odds.

The odds point to what the bookmakers arrived at as the likely outcome of an event. Additionally, the odds show you the potential wins you are entitled to, should you bet with the odds on a specific market.

Therefore, this article will guide you through how betting and sports betting odds work, and how you can comprehend these odds. We will take a look at the meanings of decimal odds, fractional odds, and American odds as well as positive odds, negative odds and so on. Also, we will explain the concept of Draw No Bet and the concept of fade in betting.

What are Betting Odds?

Let’s begin with what betting odds are. Odds are simply the ratio of the amount staked by the bettor and the bookies. For example, the odds of 4 to 1 show that the bookmaker or the first party has staked four times the amount you wager as a bettor. Basically, it means for every 1 dollar you stake, you stand a chance of getting 4 dollars if you win your bet.

## How Bookmakers Calculate Betting Odds

Bookmakers or sportsbooks calculate betting odds simply by estimating what the probability of an event happening is and then come up with a number, odds, based on these probabilities. For instance, if a bookmaker thinKs Brazil’s chances of winning the next world cup is not high, the odds are likely to be something like 50/1.

Odds such as 10/1, 20/1 and the likes, implies that the chances of an event happening is quite low – 10/1 means the chances is 1 out of 10, 20/1 means 1 out of 20. Another thing these odds imply is that the payout is likely to be high as 10/1 for instance means if you stake \$1, you are going to be paid \$10 if the event happens.

## What is Probability?

Probability is about chances attached to the outcome of an event occurring. You could say it is how likely or unlikely the outcome of an event would turn out to be. For example, if there is an outcome with a low probability, that means the outcome is less likely to happen. Also, if there is an outcome with a high probability, it means the outcome is more likely to happen.

For instance, if you were asked to select a number between 1 to 10, and after your selection, someone was asked to guess the number you have chosen, that person has just a 10% chance to guess the right number you have selected. It is a 10% probability because there are just 10 possible outcomes or 10 possible numbers to select from.

However, if the task was to guess whether you have selected an odd or even number between the same 1 to 10, then the person has a 50% chance of guessing the right number since the only options available to choose from are just two.

Probability is usually displayed as a fraction by bookmakers. It is commonly shown as two numbers separated by a slash (1/2). Another illustration of probability is the tossing of coins. When a coin is tossed, there are only two possible outcomes, which are the heads or tails.

Thus, probability is used by bookmakers to influence their odds, after which they decide the price to be attached to each market.

### How to calculate the probability

Since you now have the understanding that odds are simply numbers separated by a slash, you can leverage that to calculate the probability of the outcome of an event that is happening.

The most common types of odds are the fractional odds. These odds are mostly used by the majority of top UK bookmakers.

When calculating probability, the method to use is to take away the two numbers that represent the odds and replace them with letters (A/B). For instance, if you have odds of 2/1, it will become A/B. Then, the calculating formula would be (%) = B/(A+B).

With this same formula, let us show you some examples of betting odds calculated with probability;

• Example 1: Take the odds of 9/1. You can calculate this as 1/(9+1) = 0.10. What this means is that you have a 10% chance of the event happening.
• Example 2:  Take the odds of 4/1. You can calculate this as 1/(4+1) = 0.20. What this means is that you have a 20% chance of the event occurring.
• Example 3: Take the odds of 9/1. You can calculate this as 1/(1+1) = 0.50. What this means is that you have a 50% chance of the event occurring.
• Example 4: Take the odds of 9/1. You can calculate this as 1/(4+1) = 0.80. What this means is that you have a 80% chance of the event happening.

## How to read betting odds?

If you are still wondering about how you can read odds and understand betting odds, no problem, we’ve got you covered as well. Reading sports betting odds is not that difficult.

Now, we have mentioned fractional odds and examined what it looks like. But a key thing about fractional odds or how fractional odds work is that these converting odds reveal your potential winnings to you, based on your bet amount or the amount you intend to stake on the event. For example, if you decide to place a bet of \$1 on a betting market with 15/1 odds, your potential total payout would be \$16, plus your original wager of \$1. This could be yours provided that you won the bet.

Let us walk you through some examples of how you can read betting odds. At first, it might seem difficult, but the process will become simpler as you gain more betting experience.

• 7/1 for every \$1 bet – This implies that you would win \$7 profit plus your \$1 original stake
• 8/2 for every \$2 bet – This implies that you would win \$8 as profit plus your \$1 original stake
• 1/2 for every \$2 bet – This implies that you would get \$1 profit plus your \$2 initial stake

However, you must also be familiar with the concept of “odds on” and “odds against”. If the first number in fractional odds as displayed above, is smaller than the second number, this is regarded as “odds on”. But if it happens the other way round, that means the selection is “odd against”.

Also, be aware that sporting events that are “Odds on” are considered a probability or prediction that is more likely to happen. It is also the same for events that are “odds against”.

## Decimal odds Explained

Aside fractional odds, we also have decimal odds and we will discuss how decimal odds work in this section. Decimal odds are also popular among punters. These odds make use of a decimal format to show the stakes. They are also easily used for a quick view of the probability of an event.

Punters make use of decimal odds to make quick comparisons between odds with the absence of any complicated mathematical formulas. It also allow punters to get a quick view of potential winnings. So, for decimal odds, it simply the higher the amount, the higher the potential winnings.

Furthermore, calculating winnings with decimal odds involves the simple multiplication of the stakes by the odds.

See examples below;

• With the odds of 6.00: If you bet \$1, you will win \$6
• With the odds of 6.00: If you bet \$5, you will win \$30
• With the odds of 6.00: If you bet \$1, you will win \$6

Now, if you want to convert decimal odds to probability, you need to consider the value of the decimal. For example, a 50% chance of winning is the same as the odds of 2.00. But there is a lower than 50% chance of winning with odds that are above 2.000, and vice versa.

This is the formula to use to turn decimal odds into probability; 100/odds

For instance, if 6.00 is the odds of winning for a team, then 100/6 is the probability of them winning, and that equals 16.7%.

In all of these, what you should be mindful of is that the odds are simply just probabilities offered by bookies, and it is based on their predictions. Thus, try not to interpret them as a guarantee of a certain outcome happening.

## American Odds Explained

Fractional and decimal betting odds are no doubt the most common among bookmakers. However, there are also the American odds, and you should know how the odds work too.

The American odds or moneyline odds are represented with either a + (plus) or – (minus) sign. That is, positive odds or negative odds. The essence of these signs is to simply show whether the bet placed is odds on or odds against. So, if there is a positive sign on the odds of a bet, that bet is odds against, and vice versa.

Let’s take a football match between Arsenal and Manchester United as an example. If Manchester United are +300 to win the game, and Arsenal are -170. Firstly, it shows that the odds with Manchester United imply that the team is the underdog, while Arsenal with -170 odds are the favorites.

Thus, if you wager \$100 on the odds of 300, it means you will make \$300 profit, and a total of 400, including your initial wager of \$100.

However, the odds on Arsenal which is -170 shows you that if you bet \$170, you will get a profit of \$100, and the total return all together with your stake will be \$270.

## Football Betting Odds Explained

Football is an amazing sport and one of the most popular sports in the market. Bettors can wager on matches that are taking place daily and all through the year. If you are a fan of football betting, you have the opportunity to bet on a wide range of betting markets. However, with potential profit in place, getting the right type of bets seems crucial. Thus, below are some of the most popular types of football bets you can wager on;

• Match Bets – This type of bet is to predict the outcome happening of a particular match. It is the most popular among punters.
• Bet Builder Bets – This allows bettors to combine multiple selections on the same event. You form a single bet when you combine them, and they can yield potential value. This explains why the bet is popular amongst bettors.
• Accumulators – Football accumulators are usually placed by punters with the prospect of winning a sizable amount. Some top betting sites offer an accumulator boost to give you a bonus amount in addition to the potential returns of the bet.

## Horse Racing Odds

Horse racing odds are not difficult to understand, but to make it simple to understand, we have highlighted some examples. See below;

• 4/1 – When you stake 1 unit and you win, you will receive 4 units plus your stake
• 12/2 – When you stake 2 unit and you win, you will receive 12 units plus your stake
• 10/4 – When you stake 4 unit and you win, you will receive 10 units plus your stake

## Is there anything like Good Odds?

Well, there isn’t a correct answer to this question since every punter has a personal notion of what determines good odds. Usually, what good odds imply is the best value for your money, and this depends on the betting market you can find such odds.

If a top bookmaker offers short odds on a particular selection that is also available elsewhere at much higher odds, this could be regarded as good odds since there is a bookmaker that is offering more monetary value with the higher odds.

So, betting odds generally show the probability of an event happening, thereby allowing you to take your chances by placing a winning bet.

## What does fade mean in betting

Most sports punters are always eager to wager on top teams in the league. However, that approach might not always win because sometimes it could be those they are betting against that bring the profit. This kind of situation is what it means to “fade” in betting.

In betting, a fade refers to a wager placed against a particular person, team or market. Fade is a term that is mostly used to explain when a bettor dislikes a bet or an event, and as such bets against it consequentially, or actively avoids betting on the game. In another way, fade could mean when a sports bettor receives advice to place a bet on an event but refuses to do so because the bettor does not agree with it.

Before the term “fade” emerged, what the first bettors preferred using was the word “favorites”, and these are used for teams that would bring in the most value. Even up till now, several amateurs and one-time bettors place bets on the “favourite” because it always seems like the safe option, but it was because they primarily lack professional opinion.

Witnessing this prevalence, new kinds of bettors began to emerge and started to place bets against favourites and start to win. It was more like taking advantage of the mistreatment of the teams that fall under the category of “not being favourites”.

But then, when it comes to betting it’s not about creating a balance or just taking sides. The fact remains that you cannot just follow or even fade the public without any tangible reason. Rather, you are to make proper analysis based on odds, betting sports lines and numbers.

## Why should you fade a bet?

The primary reason bettors choose to fade a bet is what you can call “overhyping”. That is, a particular team or player could be perceived as being unbeatable just because they receive lots of attention in the media. However, in most cases, they end up losing or disappointing bettors. Thus, when the case is like this, bettors often choose to fade the team or the player. That is, instead of betting on them, they bet against them.

Thus, in sports betting, if you were told to “fade” or to “fade them”, what you are being told is that you should bet against the team. Fade is also commonly used when one side of a game has attracted the general betting public, and many handicappers believe that the crowd don’t usually make sound betting decisions since they only follow their perceptions of a certain team when placing wagers.

Additionally, bettors also choose to fade because of player performance. Of course, players cannot be a hundred percent consistent in the world of sports. Thus, if a player or even a team have a poor track record, this influences bettors to decide to fade a bet on them.

## Fading the Public Bets as a Strategy?

So many professional bettors make use of “fading the public” strategy. This is a strategy that allows bettors to back a losing team to regain some form and also prepare for future wins.

Fading can happen in different ways, but the most common approach is to deliberately go against a game or event you are fully aware would lose. This particular approach is commonly used when you are not sure if the losing team will win or lose at that time, but you still decide to fade them regardless, because you believe that they will lose again.

A typical example of fading public bets is when a team loses an important match, one we can call a big game, and then records two or more wins against lesser teams later. In this case, although they are winning after losing to a big team, yet it doesn’t eliminate the likelihood of them losing again soon. Thus, backing them could be seen as risky. This strategy is common in football betting.

## What are the fading strategies to explore?

Carrying out research before placing a wager on any game is indeed important. However, you should be aware that there are some scenarios where fading might come in handy. These include;

### Fading a poor performance team

This is the most popular strategy employed in fading public bets. It is also the most effective because you are betting on a key player or team that has been underperforming. For instance, if you want to back a team that has lost consecutively in seven games, you can consider fading them and back a team that is expected to lose.

As a sports bettor, you can also fade on a team that has recorded consecutive wins for some time. That is, you can choose to bet against them because eventually, every winning streak comes to an end. For instance, if the general public is backing a team with the most consistent win because of their general sentiment towards the team, you can choose to fade the team. That means you will place your bet by backing the other team that is expected to lose.

But, you must not also forget that betting involves taking risks, and as such, there are no guarantees.

This means that you will not bet on teams or players that have been performing well before they had some bad results later. In essence, these are teams or players with the potential for good returns from bets, and that is because they were performing well before. But they are struggling a bit due to a bad form.

For instance, if you have a team you are backing with a winning of 12 games in a row but they recently started to lose some matches, you may fade them. You can go for another team that is expected to win.

Betting is not a field where trust is permitted. The fact is that you cannot even trust the bet or your fading gut against the public. But, statistically, the general public has recorded more wrongs than rights. So, does it imply that fading is a better alternative?

Well, this might be risky since the stance of the general public is to bet against the handicapped team. However, it still doesn’t automatically translate to the fact that the other team will win.

Also, you could fade the general public and still lose while the team on the side of the general public wins.

So, what is the way out? Well, the only way you can fade the public is by doing your due diligence, and what that means is that you have taken time to read and study odds, betting lines and more.

So, when it comes it fading in betting or sports betting, all it comes down to is trusting yourself, your analysis and sometimes your guts.

Getting a payout on a fade bet depends on the outcome of the game. If the team you are backing loses, and it happens to be the team expected to lose, your payout will come as half the stake. However, if the team wins, your payout will be a double of the stake. Also, your payout will be tripled if the team you are backing wins by two or more goals.

## Tips & Tricks on Fade Betting

If there is an upcoming match between two teams, and you place a fade bet, it should mean that you have analyzed the strength and history of both teams. So, fading requires analysis and not just mere guesses. Check out some of the tips you can consider if you want to identify decent fading bets;

### Identify the side the general public is backing

In trying to determine the sides, you would need to check out the previous performance of the two teams, and public perceptions about them. During your research, you may discover that one team could be a strong team with several winnings in previous games. While the other team could not have recorded any wins in previous games. Now, popular opinion would be that the first team has a higher chance of winning than the other, which is also noticeable with the number of bets that would come in on the game.

Line movements have a way of being affected by the public. The moment the public stands in favor of a side, the bookies begin to alter the line. When that happens, place your “fade the public” bet right away. That is, place your bet on the underdog.

### Leverage on Line Movements

Punters make use of different strategies to fade the public. However, the most used are taking sides with the underdog early on.

## Why do sports bettors fade on teams?

The following are the common reasons sports bettors tend to fade on teams;

### Unfamiliarity

Usually, sports bettors bet on the teams they are quite familiar with. They tend to fade on the ones they do not know or are not familiar with.

### Cutting Back

Bettors are likely to fade teams when they have lost in bad bets, and when that happens, they cut back. That is why it is better to place bets based on what you can afford, instead of staking everything at once.

## Review Questions on Fade in Betting

### What is “fading the public”?

“Fading the public” means betting against what most people or the public are betting for. So, if most bets are on one team, you might bet on the second team, hoping that the underdog will emerge as the winner. Fading the public is a strategy where you go against what the public thinks will happen.

### Should you bet with or against the public?

There is no right answer to this question, it depends on several factors. For example, betting against the public can make sense because most people bet on popular teams, which can make the odds less favorable.

However, you might also want to look at other things like how the pros are betting and if the odds are changing. Sometimes, betting with the public can be a good move and sometimes it might not be. So, reading the odds is necessary before placing your bets.

### How can I know who the public is betting on?

You can try to check the betting percentages and how the odds change on different bookies. One thing for sure is that when lots of people bet on a team, it can affect the odds.

So, by studying how the percentages change and comparing them to the odds, you can figure out where the general public is placing their bets. You can also look at what the media and social media are saying because they often show what the public is thinking.

## What about draw no bet?

What does draw no bet mean? Draw no bet is a type of bet that doesn’t accommodate the possibility of a tie as the outcome of a bet. Punters are expected to choose the victory of either of the two sides. So, in this kind of bet, your stake gets split into two when you place a bet. It is split between the winning team, and when the match also ends in a draw. So, it means you are betting on two outcomes.

For example, there is a Team A and Team B, and you have predicted Team A to win the game, and at the same time predicted that the game would end up in a draw. So, if Team  A wins, you will win, and if there is also a tie between the two teams, you will be given back your entire stake. However, if Team B should win the match, you will lose totally.

## Tips to Win Draw No Bet

You can’t bet on the Draw-no-bet market without having adequate knowledge and strategy.

• So before you start, you should consider conversing with the market and competition you intend to bet on.
• You should have a wealth of statistics so that you can make the best out of the bet
• Another thing to do is to examine the performances of the two teams, including goals scored, winnings, draws and losses. You can easily come across these facts on their league tables online, after which you can decide how you want to place your wager. For instance, if you find out that there is a team that is usually unbeaten, you can use that information and select the team for the DBN bet.
• Also, selecting the right bookmaker is very important. There are a plethora of bookies offering Draw-no-bet, however, you should choose bookies with regular events. Doing this allows you to have so many betting options.

You can use these tips for your Draw no bet, and expect to win.

## Sports Featuring Draw No Bet Market

Not all sports end in a draw, and that’s why sportsbooks are unable to offer this particular bet on all sports. The sports that can end in a tie or draw, and where the betting market can be applied include soccer, cricket, chess, ice hockey, American football, boxing, horse racing and other racing sports.

There are lots of sports where you can use the Draw No Bet option. Football is a big example of where this kind of bet works well because there can be three possible outcomes. Of course, this also applies to many other sports. But the bottom line is that we just need to pick a sport where a draw can be the outcome. For example, tennis doesn’t fit this type of bet and that is because there’s no possibility for a draw in a tennis game. But sports like basketball, ice hockey, and American football do work because they have the potential to end in a draw.

Remember, the bet usually applies to the end of the regular playing time unless the bookmaker says otherwise.

Also, in rugby, draws don’t happen often, but they do occur sometimes. So, it means that you can use Draw No Bet for this sport as well. The same also goes for boxing, cricket, and handball where draws can occur.

Therefore, you must always check with the bookmaker to see if you can place a Draw No Bet wager.

## Draw No Bet Wagers and Outcomes

Let us take Machester United and Arsenal as an example. If you decide to bet on the match between these two, see the odds for the outcome of the two teams;

Everton – 21/20 (2.05)

and Manchester United – 8/10 (1.80)

However, if it were the game-winner betting market, the odds would be like this;

Everton – 21/10 (3.10)

Manchester United – 29/20 (2.45)

Now, on the “draw no bet” betting market listed above, you bet \$20 that Manchester United will win the game. If Manchester United wins, you will get \$21 and get a total payout of \$41. However, if the game ends in a draw, you will only get the whole of your stake amount back which is \$20. This just makes it look as if you didn’t place the bet in the first place. But if Everton should win the game, you will lose all the stake amount that you bet on the event.

## Other Similar Betting Markets

If a bookie doesn’t offer the draw-no-bet market, there are other similar betting markets you can give a try. A notable example of this alternative is the “Double Chance” market. This market allows you to also enjoy the same per cent security as the DBN market. Also, with the double chance bet, you will be backing two out of the three outcomes in three-way markets. Examples include Home and draw, home and away, away and draw.

Furthermore, if Draw No Bet is not available, another alternative is the Asian Handicap 0. These two betting types level the playing field as they both work similarly. The draw has been removed from the two betting types. Therefore, if the game ends in a draw, you get a total refund of your stake, and that is because the bet has been declared void.

## Common Mistakes to Avoid on Draw No Bet

Here are some tips to help you make smarter choices when you’re betting on “draw no bet” matches:

The first thing you should avoid is taking guesses when placing your bets. Don’t do that. Instead, you could take a look at how well the teams have been playing recently and where they stand in the league. This could give you a good idea of who among the two teams is likely to win. For example, if a team has won their last few games, they might be considered a good choice. However, if there is a team that has been losing lately or is out of form, they might not have high value in the draw-no-bet market.

Additionally, you should only go for the “draw no bet” option if the odds are better than betting on a team to win outright. Sometimes bettors choose this option without checking the matchwinner markets first. Therefore, you should first spend a few minutes comparing the odds for different types of bets.

Finally, you should also try to stick to a consistent betting strategy and be ready to change it if needed. The fact is that as a bettor, you could get easily frustrated and make impulsive decisions when you’re losing.

You can use the information available before the match starts to make an informed choice. Look for patterns and trends in past results. This way, you can make bets based on informed choices and avoid relying totally on luck.

## Review Questions on Draw No Bet

### What are the best odds for Draw No Bet?

Normally in betting, odds are not static, they can change. This is because Draw No Bet odds can change depending on the betting platform, and the teams playing. But when bettors can find what can be called “the best odds” is when two evenly-matched teams are playing against each other.

### What happens if the game ends in a draw in a Draw No Bet market?

In the Draw No Bet market, if the game ends in a draw, you will get the whole of your initial stake back.

### Can you cash out on a Draw No Bet?

Lots of bookmakers let you cash out your bet for various sports, and Draw No Bet is not an exemption. But, we recommend that you always check the terms and conditions of the bookmaker before you make your bet.

### Is Draw No Bet the same as Double Chance?

No, it is not the same. Draw No Bet means you get your stake back if your chosen team doesn’t win and the game ends in a draw. Double Chance lets you bet on two outcomes under one stake, like a home or away win or a draw.

### Does Draw No Bet include extra time?

Draw No Bet doesn’t include extra time. However, it is not a bad move to check with your bookmaker because rules can vary between bookies.

### Can I combine a Draw No Bet market with other bets in a sports accumulator?

There are several top betting platforms offering accumulators or bet builders. These betting sites allow bettors to combine different types of bets.

Draw No Bet is also popularly offered on betting platforms, thus, you can often include it with other bets like match winners or over/under bets.