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Franzi | Games
Franzi | Games 
What is an odd?
In sportsbetting, everything revolves around odds – but what exactly is an odd, and how is it determined?
approx. 2 min.
What is an odd?
odds, odds, odds
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Essentially, an odd is a multiplier; it's the figure you multiply your stake by to determine your total potential payout.
The process starts with the bookmaker setting the 'opening odds.' Their goal here is to predict the likelihood of various outcomes as precisely as possible.
To make these predictions, they don't guess—they rely on deep statistical analysis and complex mathematical modeling.
They look at a wide range of variables, such as the teams' recent form, their current league position, who is refereeing the match, and other critical details.
Mathematically, the odd is found by dividing 1 by the estimated probability of the event occurring.
For instance, if there's a 50% chance of Germany beating Spain in a EURO quarter-final, the calculation is 1 divided by 0.5, which gives you odds of 2.0.
1 divided by 0.5 equals 2, which results in odds of 2.0.
So, does the odd simply represent the probability of a bet winning?
While not a perfect mirror, odds are designed to reflect the real-world probability of an outcome as closely as possible.
- Generally, low odds (anything under 2.0) suggest that the outcome is more likely to happen, meaning there is a greater than 50% chance.
- Conversely, high odds (above 2.0) indicate that the event is considered less likely, with a probability of less than 50%.
- When a bookmaker sets identical odds for both a win and a draw, it's a sign that they see no clear favorite or dominant trend for the match result.
- In the world of live betting, these numbers aren't static; they shift constantly to reflect the real-time action on the field.
Why are odds usually shown as decimal numbers?
Decimal odds have simply become the standard way of displaying prices across Europe.
However, you'll also encounter other formats depending on where you are, such as fractional odds (common in the UK) and American odds.
To compare: a decimal odd of 6.0 is the same as 5/1 in the UK system. In fractional odds, the first number is your profit and the second is your stake. So, at 5/1, you earn €5 for every €1 you bet. Your total return would be €6 (your €5 profit plus your original €1 stake).
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