How Betting Odds Work? If you're trying to understand the logic behind betting odds this video is the solution. Caan Berry explains how betting odds work in sport, what platforms are best and how you should be thinking about betting odds. It's a key explainer if you're a sports fan.
Don't stop there though! There are more helpful tutorials and guides on the YouTube betting series link shared below: https://www.youtube.com/playlist?list=PLTHJbN4803sVKK4MDE_l5ETR2gLLpBw-m
For more sports betting tips, subscribe to Caan Berry Pro Trader: https://www.youtube.com/user/caanberry
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This video explains how do betting odds work for sports betting.
when you first come across betting odds
bookmakers the media would have you believe it's a level playing field where
you can profit by picking a winner but think about that logically for a second
it doesn't make much sense does it if it were true it would mean the bookies
possess a divine power where they can predict the future it also means that
nobody else could do it otherwise they'd soon be out of business which might
leave you wondering what they spent so much money promoting tipsters booki
es
don't predict the winner to make their money and understanding how betting odds
work will show you why so wherever you are in the world betting odds work the
same way the format may change but the underlying structure remains the same
it's just an expression of pricing simply put betting odds work by
reflecting the implied chance of an outcome in monetary terms inclusive of
the operators margin it doesn't matter which sport you're betting on or where
you do it from in fact it has nothing to d
o with the football teams greyhounds
tennis players or horses but the previous betting odds explanation isn't
all that clear so as the saying goes tell me not forget teach me in a may remember
involve me and I learn so here's an example to involve you with how
betting odds work assuming we're looking at the betting odds on a
football match the chance of the match happening is a hundred percent otherwise
the bets will not take place individual odds are linked to each outcomes probability just lik
e the value of ingredients and linked to the price of a cake sounds
fair enough right bookmakers make money by putting these odds together and
adding on a hefty margin for themselves again like a baker would win selling a
cake so if we look a football match example you have three possible outcomes
team A wins team B wins and the draw let's say team a have favorites with a
50% chance of winning team B are the underdogs with a 30% chance and the
drawer is most unlikely with 20% together they all t
otal 100% in betting
terms this hundred percent figure is called the over and if one out comes
odds increase anothers must decrease simple if we convert these probabilities
into the three different odds formats decimal fraction and money line you get
something like this however these prices are the true value
of something happening if bets are struck at true odds over the
long term neither bookmaker nor punter would make a profit
but there's more about that in the betting strategy video that wil
l follow
this one in the end screen bookies ensure they win by subtracting a chunk
of value from each outcomes price it changes the overall overround figure like
this this is why you'll typically see overround figures 108 percent to 125
percent with a bookmaker occasionally they're as high as 140 percent on events
like the grand national this is because bookmakers know the entire nation is
going to have a bet anyway so they just jack up their margin but there's a
better option on offer on a bett
ing exchange like Betfair or Betdaq
betting odds work differently an exchange platform is a place where users
like you and I are free to match bets against each other at a price we agree
on the winner is then charged a small Commission when the event is settled at
the time and published both the exchange is mentioned in this video offer a flat
rate of 2% so if we're going back to our example you can see a quick comparison
between the different platforms it's quite shocking really isn't it but wa
it
because the most important bit is yet to come
if you cash out an existing bet you only pay Commission on the winning figure
that's cashed out supposed to get a bad value on the opening bet and again on
the cash out bet as a brief example if you place the back bet on Chelsea that
had a true price of 4.5 you'd more than likely get a price a 4.0 with a
bookmaker three to one in fractional odds a hundred-pound of four point zero means
a 400 pound total return by placing the same back bet with a b
etting exchange
you'd likely get the four point five price and then pay 2% on your winnings
100 pound of four point five is 450 pound return minus the 2% which is seven
pounds total return being 443 pounds now the important bit if you cashed out with
a bookmaker you'd see their margin applied again assuming the true price is
moved to three point five the cash out would be worth 14 pound 29 profit but a
bookie would apply their margin again offering you the 3.75 price to cash out
against this mak
es their cash out offer just six pound 67 ouch
double shafted however if we were on an exchange they'd allow you to cash out
your full bet from four point five price of three point five only then would they
apply the 2% commission cashing out between 4.5 of 3.5 is worth
28 pound 57 so you pay 2% Commission on that a total of 58 pence the end result
for these identical bets on alternate platforms like this 6.67 with a bookmaker
or 27.99 with the exchange this is exactly why you should always use
a betting
exchange instead of a bookmaker so now you understand how betting odds work
it's time to take a little look at betting strategy taking it one step
further so click the video on screen here to watch that one next also while
you're here if you found the content useful please click the like button down
below and subscribe to the channel thanks
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