< Return to What is the Betfair ExchangeGo to Placing a Back Bet on the Betfair Exchange >
Understanding Odds on the Betfair Exchange
When placing a bet, your odds will be displayed in one of two ways, fractions or decimals, and many betting websites, including the Betfair Exchange, now use decimal odds as standard, so it’s important to understand how it works.
Decimal odds are popular because they are easy to understand, displaying the total return from a 1 unit stake. They allow you to easily calculate how much money you will be returned if your bet wins. To work this out, simply multiply your stake by the decimal number displayed and that is how much you will receive, plus your stake. As the unit stake is always included, decimal odds always have a value greater than 1.
Examples of Decimal Odds
The total (potential) return on a stake can be calculated as:
Total Return = Stake x Decimal Odd Number
The decimal odds will be displayed up to 2 decimal places, but the return will be paid out by calculating at the actual odds, to the nearest £ 0.01. For example, the fractional odds 10/3 would be 4.33333 (recurring) in decimal but a £10 bet at 4.33 woudl return £43.33.
Examples:
9.00 - for every £10 you bet, you will win £80 profit. You will also receive your £10 stake back so your total return is £/€9.
2.00 - for every £10 you bet, you will win £10 profit. You will also receive your £10 stake back so your total return is £20.
1.25 - for every £10 you bet, you will win £2.50. You will also receive your £10 stake back so your total return is £12.50.
Decimals are a common sight at racecourses across the UK & Ireland thanks to the Tote where fractional odds are the default. However, fractional odds can be confusing at smaller prices as you can have bottom-heavy fractions, making the conversion hard to do on the spot.
For example, if you wanted to place a bet on Judd Trump to win his opening match of the World Snooker Championships with odds of 23/50 if can take a little longer to work out your returns from a £1 stake. However, in decimal, this would be 1.46 – it is clear to see which would be easier to convert, especially to a new bettor.
Why is Understanding Odds Important?
If you want to partake in sports betting then understanding how to read odds is a vital part of the process. If you do not understand how to read the odds, you will never know if you are getting good value or what your potential returns might be.
Decimal odds are the easier of the two to understand and many punters have switched to using decimal odds out of choice after years of using the fractional format as they can be read at a glance and do not require any tricky calculations.
Converting fractional odds to decimal odds can be tricky, so below is a handy guide.
