Betting Odds Explained — Decimal, Fractional & American

Quick answer: Betting odds show two things at once: how much you win, and how likely the bookmaker thinks an outcome is. Decimal odds of 2.00 double your stake and imply a 50% chance. To turn decimal odds into a probability, divide 1 by the odds: 1 ÷ 2.00 = 0.50 = 50%.

What are the three odds formats?

  • Decimal (2.00) — total return per 1 unit staked.
  • Fractional (6/4) — profit per stake (win 6 for every 4).
  • American (+150 / −200) — +150 stakes 100 to win 150; −200 stakes 200 to win 100.

What is the bookmaker margin?

Add up the implied probabilities of every outcome. A fair market totals 100%; bookmakers price it above 100% and that extra is their margin, or overround.