What is an odd?

A betting odd basically indicates the number by which your stake must be multiplied in order to calculate the payout.

The bookmaker sets the opening odds. In doing so, they try to estimate the probabilities for the different outcomes as accurately as possible.

To achieve this, statistics and various mathematical models are used.

For example, factors such as current form, team standings, the appointed referee, and much more come into play.

Odds are calculated by dividing 1 by the probability.

Example: Let’s assume the probability of Germany winning against Spain in the EURO quarter-final is 50%.
1 divided by 0.5 equals 2, which results in odds of 2.0.

Odds aim to reflect the probability of a bet as accurately as possible.

• If the odds are low (below 2.0), you can assume the event is more likely to happen (probability above 50%).

• If the odds are high (above 2.0), you can assume the event is less likely to happen (probability below 50%).

• If the bookmaker offers the same odds for a win and a draw, it shows that they also cannot identify a clear tendency for how the event will end.

• In live betting, odds are continuously adjusted to match the course of the game.

The representation of odds as decimals has become the standard in Europe.

In addition to European decimal odds, there are also fractional odds (UK odds) and American odds.

For example, a decimal odd of 6.0 would be expressed as 5/1 in UK odds. The first number represents the potential profit, while the second number represents the stake. So if the odds are 5/1, you receive €5 profit for every €1 staked. With a €1 stake, the total payout would be €6, including the stake.