Understanding Odds
Master the different odds systems used in prediction markets, including decimal odds, fractional odds, and their relationship to probability.
Understanding Odds
Odds represent the probability of an event occurring and are expressed in different formats depending on the market and region.
Decimal Odds
Decimal odds represent the total payout (including the original stake) for every unit wagered. For example, odds of 2.0 mean that for every $1 wagered, you receive $2 in total.
Fractional Odds
Fractional odds show the profit relative to the stake. Odds of 1/2 mean that for every $2 wagered, you make $1 profit.
Probability Conversion
To convert decimal odds to probability: Probability = 1 / Decimal Odds
To convert fractional odds to probability: Probability = Denominator / (Numerator + Denominator)
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