American odds vs. Decimal odds
The appearance for betting odds can deviate depending on which part of the world you live in. The two most democratic alternatives used are decimal and American odds. But what is the variation, how do you calculate returns and how would you convert from one to the other are common questions asked by members of Win60Percent. However, it is vital to comprehend when betting that irrespective of which format (American or Decimal) chosen the payouts will be exactly the same. The only difference is the appearance, not the potential payout.
Odds expression indicating return relative to a 100 unit base figure. With money odds, whenever there is a minus (-) you lay that amount to win a hundred dollars, where there is a plus (+) you win that amount for every hundred dollars you bet.
Calculating profits with Decimal odds
Decimal odds are predominantly used in continental Europe, Australia and Canada. The format is a simple numerical representation of the potential return of a bet, which includes the stake amount.
The potential return on a bet quoted in Decimal odds is extremely easy to calculate by simply multiplying the amount you wish to bet by the Decimal odds offered – just remember that the return includes your stake.
Here is an example of Decimal odds in a 1X2 soccer market:
Chelsea (2.27) x Liverpool (3.39) x Draw (3.00)
Calculating the potential return for a $100 Bet on Chelsea at 2.270:
Odds x Stake = 2.270 X 100 = 227
As this includes your original $100 stake amount, the potential profit is $127.
Calculating the potential return for a $100 bet on Liverpool at 3.390:
Odds x Stake = 3.390 x 100 = 339
Calculating profits with American odds
American odds are indubitably the default format used in America. They start either with a positive or a negative sign, e.g. -110, or +120. A negative number indicates the amount you must stake to make $100 profit (or the equivalent in your chosen currency) and a positive number indicates how much you might profit if you bet $100 (again, this would be the equivalent in your chosen currency).
Brooklyn Nets -2.5 (-124) Vs. New York Knicks +2.5 (+112)
Using the game above, if you bet $124 on the Brooklyn Nets -2.5 handicap with American odds of -124 and they cover the spread, you will make $100 profit (in addition to your original $124 stake). If you bet $100 on the NY Knicks +2.5 handicap with odds of +112 and they cover the spread, it will return $112 profit (plus the original $100 stake).
As with any odds format, the potential return and profit from a bet is relevant to the stake amount. Using a $100 bet example is the easiest way to calculate profits with American odds, but below is a simple formula to work out potential returns for any stake.
Negative American odds calculation:
(100/Odds) x stake
Positive American odds calculation:
Odds x (stake/100)
Detroit Tigers -129 Vs. Oakland A's +119
If we use the odds from the above example, you could bet $13.75 on the Tigers at -129 and your potential profit is $10.66:
(100/Odds) x Stake = (100/129) x 13.75 = 10.66
Using the same example for positive odds, you could bet $15 on the A's at +119 and your potential profit is $17.85:
Odds x (Stake/100) = 119 x (15/100) = 17.85