Live bets and fantasy betting revolve entirely around the concept of probability and betting margin guide. Based on these, bettors strategize their plan and put their stake accordingly.
The fact that gambling isn’t entirely dependent on luck comes into play when the calculation part comes in. Understanding betting margins plays a crucial role in making the entire betting experience cognizant.
As a novice punter, you might not be aware of the term betting margin and the significance it holds for professional gamblers. We will walk you through the entire guide on betting margins so you can have an edge while placing your next stake.
What are Betting Margins?
So the betting margin refers to the profit or size of the margin that a bettor receives on each odd. The lower the odds are, the more profit bettors will generate. When a bookie sets the odds, it is curated in such a way that it attracts customers to stake on both outcomes so they can earn some profit as well. No one can predict the 100% accurate outcome of an event, so the bookmaker sets the betting odds lower than the actual market value to make it favorable for them.
Booking odds are determined by the amount the bookie has wagered relative to the bettor. For example, the booking odds of 3/1 refer to winning 300% of the staked amount. A bet of every $1 will give you $3 in return.
By staying vigilant and having complete knowledge about the winning odds and draw payout amount, bettors get a better idea of the financial structure. So here’s how the entire calculation of betting margin works to get a clear picture.
How to Calculate Betting Margins?
First, let’s talk about how you can calculate the winning probability from a fraction through the formula mentioned below:
(y+(betting odd x+y) * 100)
If the betting odds are 4/2
(2/(4+2) * 100)
(2/6 * 100)
33.33% probability
Another type of betting odds we commonly witness is decimal, which makes it easier to calculate the winning margin without making things complicated. You just have to multiply the stake by the odds to find out the winnings. For example, in 5.00 betting odds at every $1 stake, you’ll get $5.
To find out the probability of winning, simply divide the odds by 100, 100/5, which is equal to 20% winning odds.
Now, another type of betting margin we have down the line is American money line odds. For some, it might be simpler, but this type of analytics is usually followed in the US. The numbers are displayed either in positive or minus, and here’s how it works.
- +300: You will get $300 by staking $100, making it $400
- +120: You will get a $12 profit by betting $10, which makes it $22
- -800: The minimum betting requirement in this case would be at least $800. If you bet $1000 and the result comes out in your favor, you will win $100 plus the staked amount.
To convert American odds to probability:
Positive (Underdogs)
(y/(x+y) * 100)
If the odds are +250, convert them into a decimal by dividing them by 100, which equals 2.5.
(1/(2.5+1)*100)
(1/3.5*100)
28.75% win probability
Negative (Favorites)
100-(y/x+y)*100)
If the odds are -100, convert them into a decimal, which gives 1.
100-(1/(1+1)*100)
100-(1/2*100)
100-50
50% win probability
Now, coming towards calculating the betting margins, you need to get the decimal odds to make things easier. To convert American betting odds to decimal, simply divide the number by 100 and add 1 if it’s positive, otherwise subtract 1 in case of negative.
In case of a two-way market (1/decimal option A*100) + (1/decimal option B*100).
For 1X2 market the formula is (1/decimal option A*100) + (1/decimal option B*100)+ (1/draw odds*100).
However, these formulas don’t include commission, which makes the betting margin inaccurate. Find out the betting commission of the platform, which could be as high as 5%, and follow the method below.
1+(1-commision/100* (odds-1)
Conclusion
This was the complete walkthrough guide on betting odds and betting margins that every professional gambler should know. If earlier, you weren’t incorporating such methods during your stakes, it’s highly recommended to try out now.
Also, be aware of emotional factors like loss aversion and risk vs reward in betting that often influence betting behavior. Get deeper info on the payout so you can manage your finances accordingly.
To get more practical experience, try various live betting tips dos and donts on Lotus365 and claim your 400% welcome bonus on your first time login.
Get deeper info on the payout so you can manage your finances accordingly. To get more practical experience, try various live betting games on Lotus365 and claim your 400% welcome bonus on your first time login.