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Odds typically refer to the ratio between the probability of one event happening versus another where the two events are mutually exclusive and exhaust all possible outcomes. In simple games with dice it could be the odds of rolling a sum of five with two six-sided dice versus not rolling it. The odds of that happening versus not happening are one to nine. Alternatively, we have nine to one odds for not rolling a sum of five. In the context of betting odds are directly linked to the implied probability of the outcome of interest.

There are different ways of giving odds in such a context and they are named mostly based on the geographical location where their use is most typical. This means negative odds are given to the event which is considered more probable whereas positive odds are given to the event considered less probable.

In the case of sports betting, negative odds are given to the favorite to win and positive odds are assigned to the underdog. For a working example, consider an NFL game where team A is given odds of and team B is given odds of This means a bookmaker beliefs, typically based on data, that team A has much greater chance of winning compared to team B.

If you are reading this from the USA and are considering placing bets, then you need to consider your local legislation regarding gambling as it is still illegal in a number of US states as of see reference [1] below for the current status of your state.

These are called "British" or U. Our odds calculator outputs the odds in all four types, as well as the payout and winnings. Their main advantage is that one can instantly spot who is the favorite and who is the underdog - the former will have the lowest odds and the latter - the highest. Typically written with a precision of three digits after the decimal point, decimal odds show the expected payout for every dollar wagered.

As an example, odds of 1. Odds of 2. Implied odds Implied odds are odds transformed into a probability, expressed as a percentage, a. It is possibly the most intuitive of all the types of odds when one is considering the risk and reward potential of a bet and is one of the outputs of our bet odds calculator.

With this being said, lets look at an example from an NFL game. True Odds vs. Implied Odds When you decide to bet on sports, it is important to have a grasp on a few things. These are listed below: What are implied odds? What are true odds? Implied odds and true odds are important in determining if you are making a bet that has good value. You can use our odds calculator above to calculate the implied odds of a given bet as long as you know the odds of the bet. Implied odds are the conversion of a sportsbooks offered odds into an implied win probability.

A spread bet in football is normally offered at on both sides of the bet. This gives both outcomes a win probability of The implied probability of this spread bet winning would be Let's use the above bet of for both outcomes on a NFL spread bet. We know that both outcomes have an implied probability of If that same outcome has a true probability of This seems easy, but how do you find true odds?

Essentially, true odds are subjective. However, one person can calculate true probability by using predictive models.