There are three main types of odds in the world of betting; American odds (Moneyline) fractional (British), and decimal odds, also known as European odds.
The only difference between the three types of betting odds is the way the potential return is presented; there is no difference in terms of payouts and the chance of winning. The percentage probability can be converted to and introduced to punters in any of these odds formats.
But, this article is all about having decimal odds explained in greater detail.
Decimal is the most commonly used betting odds format online and in international markets because they are easier to understand on a global scale than fractional or Moneyline odds. Although they are known as European odds, they are also prominently used across sports betting markets in the UK, Australia, New Zealand and Canada.
What are Decimal Odds?
Decimal odds represent price and probability.
You can calculate potential profit if your bet wins, and you can determine the likelihood of your bet winning.
The biggest difference between decimal and fractional odds is that fractional odds show potential returns without your initial stake, whereas decimal odds show the return including your stake.
If you are looking to place a bet with the decimal format, you should understand the following:
Decimal ‘odds against’ prices:
- 5.0 - £1 stake x 5 = £5 winnings
- 5.0 - £5 stake x 5 = £25 winnings
- 5.0 - £10 stake x 5 = £50 winnings
‘Evens’ odds in decimal:
- 2.0 - £1 stake x 2 = £2 winnings
- 2.0 - £5 stake x 2 = £10 winnings
- 2.0 - £10 stake = £20 winnings
‘Odds on’ decimal prices:
- 1.5 - £2 stake x 1.5 = £3 winnings
- 1.5 - £5 stake x 1.5 = £7.50 winnings
- 1.5 - £10 stake x 1.5 = £15 winnings
How Do They Work?
So, you understand the principle a bit more, but how do decimal odds work?
Converting your odds to decimals is simple. The number represents the cash amount you would win for every £1 wagered and shows the total return rather than profit alone - there is no need to add on your stake, this is already included.
The formula for decimal odds is:
Stake x Odds = Total Winnings
For instance, if you are backing Chelsea and their odds to win is 1.93, if you placed a stake of £100 your potential win payout would be £193. Your original £100 stake is included in these winnings, so your profit would be £93.
Similarly, if you placed a £100 stake on Everton winning the game at 2.68 decimal odds, you would calculate potential payout using the following method:
100 x 2.68 = £268
Again, your original stake is included in the chance to win £268, so your net profit on this bet would be £168.
The most important thing to remember when betting with decimal odds is that your initial stake is included in any potential return, and you should always account for this.
The breakeven threshold in decimal odds is 2.0 - this will double your original stake. Anything below 2.0 is less than evens odds, meaning your return is less than your stake, any odds above this will mean your return is more than your stake, aka, plus odds.
How Understanding Decimal Odds Can Make Betting Easier
Can understanding decimal odds improve the way you place a bet? Can it even make betting easier? Let’s take a look;
Easier to Calculate Potential Winnings
Fractional odds display the profit alone, for example, 3/1 means you will win £3 for every £1 stake. Decimal odds represent the total return, so 2.2 means you will win £2.20 for every £1, including your stake.
So, if you want a more accurate picture of your total return, converting fractional odds to decimal will help with this.
Easier to Understand the Betting Markets
Decimal odds are straightforward and easier to understand, whereas fractional odds can be a bit more confusing - especially for beginners to the betting industry, which has the bigger potential return 7/14 or 2/6?
When betting using decimal odds, there isn’t any complication - 1.85 is bigger than 1.24, simple.
Greater Betting Options
Decimal odds allow you to bet in smaller increments in between fractions, and there is better price competition. For example, if the presented odds are 2.5, you can ask for 2.52, 2.54 or 2.56 before you hit the next standard fraction.
Become a Betting Pro
Now that you understand decimal odds, you might want to be a bit more adventurous with your betting style. But don't go in blind, make sure you take advantage of our free football tips.
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