The longer odds of 2/1 have less of a chance of winning, while the 1/2 odds-on price is more likely to happen but you would have to risk twice as much to get the same return as if the longer price won. So there is the risk/reward factor of betting. So a £1 win on odds of 2/1 lands you £2 profit while a £1 win at 1/2 odds-on lands you £0.50 profit. In this scenario, you would need to bet two units to win one back. Then you have odds-on prices such as 1/2. Odds of 4/1 means that you bet one unit to win four back. This means that you need to bet one unit to win two back. The first thing you need to understand is what basic betting odds mean. Let’s take odds of 2/1. We will assume fractional odds of 4/6 on Barcelona, 11/4 on the draw and Real Madrid at 4/1 for the following examples and from this information you can see the percentages that the bookmakers have played on the probability of each outcome. Let’s use an example of a football match between Barcelona and Real Madrid where there are three outcomes, a win for the home team, a draw or a win for the away team. What really are the odds being shown all about? Understanding betting odds can help you get a clearer picture of not only what the value of your stake is really worth, but also what they represent in terms of the sporting event that you are betting on. BETTING ODDS EXPLAINED - CONVERT TO PROBABILITY
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