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Most of you reading this will roughly understand what betting odds are and have basic answers to question like how do odds work.
In this part of our betting odds explained guide, we will break that understanding down to two key points :. On one hand , they are a reflection of probability according to the bookmaker.
In other words, how likely they think an outcome is to happen — at least in theory. Other factors can also play a part in this, such as promotions, market fluctuations, the overround, all of which we will cover later in this article.
Perhaps more accurate is that betting odds are a rough approximation of how likely they think an outcome is to happen. Ultimately though, the end result is what matters.
So perhaps we should look at it from a more bottom-line perspective. The second way of thinking about how betting odds work is that odds are a way of understanding how much you get if you win in relation to your stake.
Betting odds are both a reflection of implied probability and a way of understanding potential returns. Following on from our previous point on betting odds explained, always remember that how much money you can potentially win only matters in relation to the stake.
This is an extreme example, of course, but the important point is that the quality of the end result is all relative to how much you need to put down to see that return.
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