Betting odds are the numbers that represent how much you will win for every unit of money you wager. They are displayed in a variety of ways depending on the sport. The three most common betting odds are American, fractional, and European (or decimal) odds. Each type of odds is a ratio or math equation that shows how likely a team or player will win a wager. American odds have a plus or minus in front of the number and are most commonly used for betting on baseball, basketball, and March Madness. Fractional odds are most commonly seen in horse racing and Futures markets while decimal odds are more popular in Europe.
Odds are also converted into percentages by dividing the numerator by the denominator. For example, a horse with 3/1 odds would have a 62% probability of winning the race based on its relative abilities. The same logic is used when converting a points spread or money line bet into implied probability. To calculate the implied probability, you simply divide the point spread or moneyline by 100 and multiply by the team’s chance of winning to get the percentage likelihood of a win.
The different types of betting odds can be confusing but understanding how they work will help you make better wagers. Ultimately, betting odds are a representation of the probability that an event will occur and should be taken seriously. Once you understand the basics of odds, you can then start predicting the outcome of a game and place wagers that maximize your chances of winning.