Before making a bet for the first time, it is important to understand how betting odds work. They can seem very confusing, for those without experience of dealing with bookmakers. Understanding the odds is very easy, when you know how. Here is a simple guide.
View Today’s Betting Markets Now!Fractional Odds
Even if you do not know how they work, you will probably be able to recognise bookmakers odds. You will see two numbers, either side of a forward slash. Something like 4/1.
These are called fractional odds. You just need to divide the first number by the second and then multiply that by your stake (your stake is the amount that you have bet). So, if you have bet £100, at odds of 4/1, your winnings would be £100, multiplied by 4 and divided by one. That figure is £400.
When you make a bet with fractional odds, you also have to factor in your returned stake. You would actually get back more than £400, from your bookmaker. The total returned is £400 (your winnings) plus £100 (your stake).
Working Out Returns
That means the total amount of money, that you would see going into your account, would be £500. You are only £400 better off than before you made the bet, because £100 was taken from your account when you made the bet.
Fractional odds are not always as easy as that, to work out. You might see a horse priced at 5/4. You would still use the same calculation method (again, we will be betting £100). £100 multiplied by 5 and then divided by 4 is £125. Your stake will be returned, so that makes the total payout £225.
When a horse is given a price that is shorter than even-money (1/1), we refer to that horse as being odds-on. This means that the number on the left of the slash is smaller than the number on the right. However, this does not change the way you would calculate your winnings.
Decimal Odds
Many people now find fractional odds as being rather cumbersome and a relic of the past. Every year, more and more of our customers are taking advantage of an option that we have added to the RaceBets.com website. You can use decimal odds, instead.
Decimal odds just need to be multiplied by your stake to give you the entire return. If you bet £100 at odds of 2.0, your total return would be £200. If the odds were 5.60, your return would be £560. Odds of 1.45 would return £145. Note that you no longer need to add your returned stake, with decimal odds.
That does not mean you are losing out on it – it is simply already factored into the price. For example, decimal odds of 5.0 are exactly the same as 4/1. Easy, isn’t it?
When you have created an account with us, you can click on the settings icon (cog) to switch between decimal odds and fractional odds. We would strongly recommend that you use decimal odds, as it will just make things a lot easier for you.
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