# Betting odds formats explained

## Betting odds formats explained

Learn the basics of sports betting. We explain you how to read **betting odds **and how to calculate your potential winnings.

When you place some bets on any **online bookmaker**’s site, you must understand how **sports** **betting odds** work. Odds are pretty important while betting. They represent the likelihood that an event will occur. The more unlikely it is, the higher the odds are. By multiplying his stake by the odds, a punter will obtain his potential winnings. Here, we will give you an overview of the main three odds formats: **fractional odds**, **decimal odds **and **moneyline odds**.

**Fractional format**

In UK, the traditional format of display is by fractions. The odds are displayed as 2/1, 6/4, etc. Let's see how to read fractional odds. The first number (numerator) shows the potencial winnings if you stake the second number (denominator).

For example, with odds 4/5, you can win £ or €4, if you stake £ or €5. If odds are 5/1, it means that you can win £ or €5 per each £ or €1 staked. Now, if you invested £20 as your wager and odds are 4/5, what is your potential return? You will win (£20*4)/5 =£16 and get your £20 stake back. Your total return is £36.

Remember something important. When the denominator (stake) is higher than the numerator (potential winnings), it means that the team or player is favourite. It happens the same thing with decimal odds less than 2 or negative numbers in american odds formats.

If you need to convert fractional odds into decimals, you can do it easily. A 4/5 fractional odd is (4/5 + 1) = 1.8 in decimals.

**Decimal format = Fractional format + 1**

**Decimal format**

Decimal odds formats (1.2, 2.75, etc.) are the simplest way to understand odds and calculate potential winnings. That's the reason why this method of display has gained popularity in recent times. The punter has to simply multiply the stake amount of his bet with the decimal number to calculate the amount of winnings.

If you stake £10 at 2.3, your return is £10*2.3 = £23. Easy. Note that the total return includes your initial stake. If you want to calculate your net profit, you must remove the stake. In our example: £23 - 10 = £13.

Otherwise, you can use the following method. The result is exactly the same. £10 * (2.3 - 1) = £13

**Net profit: Stake * (odd - 1)**

**American format **(or Moneyline odds)

This kind is preferred by online bookmakers in the United States. The moneyline odds format is different for favourites (negative odds value) and underdogs (positive odds value). Even odds are displayed as +/-100.

If the quoted figure is positive (+300, +175, etc.), it shows how much you gain on a $100 investment. A negative figure (-150, -225, etc.) indicates how much one should wager to gain $100.

For example, on a baseball game, if the bets are: Team A: -190 and Team B: +150. That means you bet $190 on Team A to win $100, and $100 on Team B to win $150.

If you need to convert a moneyline odd into decimals, you can also do it but the formula is different for positive and negative odds values.

For positive values: **Decimal format = (Moneyline Odds + 100) / 100**

For negative values: **Decimal format = (Moneyline Odds + 100) / Moneyline Odds**