What are Decimal Odds?

What are Decimal Odds?

Having understood the ins and outs of Fractional Odds (traditionally used by UK bookmakers), we think it will be a useful exercise for you to understand the Decimal Odds system as well. Decimal Odds show how many times your original stake (INCLUDING your original stake) you will get back if your bet wins. Obviously, this number should always be more than 1.0 as you should always get back your original stake if you win, plus some profit. Compare that to Fractional Odds which only show the potential profit you will get back if you win (of course regardless of the odds system, you will always get your original stake back if you win).

Let’s look at some Decimal Odds examples:
6.0 – for every £1 bet you will get £6 back, if your bet wins (i.e. you make £5 profit, per £1 staked). 5/1 (Fractional Odds), and 6.0 (Decimal Odds) are equivalent.
1.2 – for every £1 bet you will get £1.20 back, if your bet wins (i.e. you make £0.20 profit, per £1 staked). 1/5 (Fractional Odds), and 1.2 (Decimal Odds) are equivalent.

Fractional Odds are popular in the UK & Ireland. Decimal Odds are popular in Continental Europe, Australia, New Zealand, and Canada.… Read the rest

fractional odds explained

Fractional Odds explained in detail

Bookmakers in the United Kingdom (and Ireland) usually quote prices using fractional odds (i.e. 5/1, 1/2, etc). How much do you really know about Fractional odds? Fractional odds show how much the bettor can profit, relative to their stake, IF their bet wins. In this article ‘Fractional Odds explained in detail’ we explain everything you will need to know about fractional odds.

  • Fractional odds show the payoff:stake ratio. The left hand number of the fractional odds is the amount of profit you will make IF your bet wins (PAYOFF), and the right hand number is the amount you will have to gamble (STAKE). IF your bet loses, you forfeit the stake. If your bet wins, you get your stake back AND the payoff.
  • 5/1 odds mean that if you bet £1, you will make £5 profit if your bet wins (i.e. if your bet wins the bookmaker will return you original stake of £1 AND pay you £5 profit). Remember, the odds just show a ratio – you don’t have to bet exactly £1. If you bet £2, you make £10 profit if your bet wins. If you bet £60, you make £300 profit if your bet wins.
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betting tip scam explanation

Betting tip scam explanation – don’t be a victim!

There are many variations of this scam. Hopefully you will fully understand this betting tip scam explanation, and so will be able to avoid such scams. If you didn’t spot this betting tip scam, you were a victim of survival bias (you were only thinking of the people who made it through a selection process, and ignored those that didn’t). Don’t worry, here’s the betting tip scam explanation:

  • What has happened here is the ‘tipster’ sent say 10,000s of e-mails – some of which backed all the possible outcomes in the first event. You just happened to be in the group that the correct tip was sent to the first time.
  • The second time, the ‘tipster’ e-mails only the group that he had previously sent the 1st winning tip to, and divides them into new groups backing each of the outcomes in the 2nd event.
  • Again and again, this process is repeated.
  • Provided the ‘tipster’ started out with a sufficiently large number of recipients to begin with, to a certain number of people it will look like the ‘tipster’ got a large number of tips in a row correct from the start.
  • The people who received a wrong tip at any time were no longer e-mailed, and they probably didn’t think much of it.
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betting tip scam

You wouldn’t fall for this brazen betting tip scam, would you?

Although there are many tipsters who attempt to provide genuine tips, there are some scams out there you need to avoid! Can you spot this well known betting tip scam – variations of which still catch people out?

  • Let’s say you are sent an e-mail purporting to contain a betting tip that’s certain to come in on an event tonight? You don’t pay much attention to the e-mail, as it seems like a piece of spam. Later when you are watching TV you catch the end of the event the tipster predicted. In the back of your head you seem to remember the outcome might have been the same as the tip. You go back and check your e-mail, and the tipster got it right, but you don’t think much of it.
  • The same day the following week, again you get an e-mail from the same sender with another betting tip. You still don’t think much of it, but this time decide to remember the tip to check it later. You check the result later, and the tip came in. He just got lucky, you say!
  • The following week, another e-mail with another betting tip drops in your inbox – this time you are intrigued, and decide to tune in to the event the tipster bet on, and it wins!
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avoid arbitrage betting

Why should you avoid Arbitrage Betting?

Numerous websites and software tools have popped up which claim to allow you to spot guaranteed profitable betting opportunities, by taking advantage of the differing prices on outcomes in the same market between different bookmakers. We explained how you could start to find the best value markets at your favourite bookmaker. This involves working out the overround on a particular market. The lower the overround the better. However, these websites and tools take this a step further, and claim to be able to find opportunities (by placing bets at multiple bookmakers, on different outcomes in the same market) when there will effectively be no overround, and in fact the book will be less than 100%. This is called arbitrage betting. We strongly recommend you avoid arbitrage betting. Although, the opportunities they spot will be real (if you are using a reputable service), we still recommend you avoid this form of betting. There is usually a fee involved to use these services, and even though the opportunities to make a profit might be there in theory, in practice they are difficult to profit from.

Why avoid arbitrage betting? Your account may be closed, or bets revoked.

  • Bookmakers generally hate arbitrage betting.
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starting price

Is it preferable to take the Starting Price?

When you place a bet on a horse race, instead of taking the fixed odds price on offer you might be able to place a bet at an unspecified Starting Price. Sometimes for future races, which haven’t been priced up by your selected bookmaker, you can only place a bet at the Starting Price (SP).

When you place a bet at the SP, you do not know in advance what odds you are getting! So, why on earth would you want to take this option? Odds on horses can fluctuate, in the build up to the race. When the race start time comes closer, it is clearer what the conditions will be like (e.g. is the ground heavy or soft, will it be raining or really hot at the time of the race), if any other horses have withdrawn, and if the horse has any issues etc. Odds can thus fluctuate for many reasons, including the amount being bet on a horse. So, with lots of money coming in, the price is likely to go down and vice-versa. In the UK, a panel decides the starting price (it should be the same regardless of which bookmaker you use), based on how they view the fluctuations of prices.… Read the rest

horse racing form

How can Horse Racing Form be used to make better bets?

When placing a bet with your bookmaker on a horse race, you may see each horse’s form indicated. You can also see horse racing form in newspapers which carry race cards. What do the letters, numbers, and other characters mean?

They tell you how each horse has performed in their most recent races. This may help you decide how each horse will perform in the current race that you are thinking of betting on. The important thing to remember is that the rightmost entry is the most recent race, the 2nd entry from the right is the 2nd most recent race, etc.

A number from 1 to 9, means that the horse finished in that position (a limitation of the form guide, is that it does not tell you how many horses ran in that race). If the horse finished outside of the top 9, the number 0 is shown. If the horse did not finish the race, you will see the reason indicated by one of the following letters: B,F,P,R,S,U which respectively stand for Brought down, Fell, Pulled up, Refused, Slipped up, and Unseated rider. You might also see the following characters: is used to separate years, and / is used to separate racing seasons.… Read the rest

wisdom of the crowd

How does Wisdom of the Crowd affect odds?

  • Wisdom of the Crowd refers to the phenomenon that a large number of individuals in a group, will usually be able to make better decisions than any individual in that group.
  • For example, at a funfair say their was a big jar with an unknown amount of marbles. People were asked to guess the number of marbles (with the closest getting a prize). If you took all the guesses and averaged them (provided there was a sufficient number of people in the group) it would usually come close to the actual number of marbles in the jar. Obviously, the more people who participated the closer to the actual number you would get.
  • This happens, because individual noise is filtered out.
  • In the case of betting odds, Wisdom of the Crowd also has an effect as bookmakers are forced to lower prices getting a lot of betting action (and increase prices not getting a lot). So, highly backed outcomes get their prices lowered, and less well back outcomes get their prices increased.
  • However, for Wisdom of the Crowd to work people have to be making rational and independent decisions. In the case, of marbles in the jar at the funfair this may be the case.
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