Decimal Odds – Understand Easily How Decimal Odds Work

Decimal odds are commonly used in mainland Europe, Australia and Canada and are sometimes referred to as Continental or European odds.  On the face of it, decimal odds may look straight forward, as they are a single number, whereas fractional odds are always comprised of two numbers.  This is actually true and is probably why all the major bookmakers now allow customers to choose if they would like to use decimal odds.

Decimal odds show you how much you could win, for the amount you have bet.  In comparison to fractional odds, decimal odds show you the total amount you will have returned, including your initial stake.

A simple equation to use, when working out your potential returns from a bet using decimal odds is:

Stake x Odds = Return

Example

Decimal odds of 4.00 show the total amount you stand to have returned to you, for the amount you have staked.  So, if we place a bet of £10 at odds of 4.00, you stand to return a total of £40, if the bet wins.  Your return will comprise of £30 profit plus your original £10 stake.

Another example of decimal odds would be 5.50.  Exactly the same principle applies as in the example above.  So, if you place a bet of £20 at odds of 5.50, you stand to receive a return of £110.  This is a profit of £90, plus your original stake of £20.

Evens

When using decimal odds, 2.00 is seen as ‘evens’ because you will always double your money, if you place a successful bet at these odds.  So, if you placed a bet of £10 at odds of 2.00, you will receive £20 back if your bet wins.  If you place a bet of £50 at odds of 2.00, you will receive £100 back if your bet wins.  Whatever the amount of money you stake, you will always receive double back for a winning bet at odds of 2.00.

Strange Decimal Odds

On occasion, especially if betting on live sporting events, you may see odds like 1.01 offered by bookmakers.  These odds may appear if a team or player looks as though it is going to win, as they are leading and the match is drawing to a close.  To make any worthwhile profit on odds like this, you will need to bet a huge amount because if you place a bet of £10 at odds of 1.01, you only stand to win back £10.10.  Therefore, the majority of people betting on live events, tend to avoid placing bets on decimal odds like this.

Odds On and Odds Against

As with fractional odds, it’s possible to have decimal odds which are either ‘odds on’ or ‘odds against’.  If we take 2.00 as even, which we discussed above, then it makes sense that anything below 2.00 is classed as being ‘odds on’.  This is because you will need to place a stake which is always going to be more than the profit you will make.

For example, if you were to place of bet of £10 at odds of 1.50, you will have a potential return of £15, which is £5 profit and your £10 stake returned.

Anything above the odds of 2.00 is classed as being ‘odds against’ because if your bet wins, you will always make a profit more than your original stake.

For example, if you were to place a bet of £10 at odds of 2.50, you will have a potential return of £25, which is £15 profit and your £10 stake returned.

Conclusion

You now how have a good understanding of how decimal odds work and what they mean.  If you ever use betting exchanges when placing bets, such as Betfair, you will find all the odds on their website are in decimal format.  Below is a recap of the key points to remember, which you can easily refer back to when required.

• Decimal odds show you the total amount you will have returned, including your initial stake

• A simple equation to use, when working out your potential returns is: Stake x Odds = Return

• With a bet of £10 at odds of 4.00, you stand to return a total of £40, if the bet wins. Your return will comprise of £30 profit plus your original £10 stake

• When using decimal odds, 2.00 is seen as ‘evens’

• Anything below 2.00 is classed as being ‘odds on’

• Anything above odds of 2.00 is classed as being ‘odds against’