Difference between revisions of "American odds"

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(Created page with "American odds is a format used to display betting odds. Positive and negative numbers are used to indicate potential profit relative to a 100 unit risk. American odds are freq...")
 
 
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== How American Odds Work ==
 
== How American Odds Work ==
  
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The betting odds for any market will be either a positive or negative number. The negative numbers require an initial risk of that amount in order to profit $100. The more favored a market is to win the larger the negative number as the bettor is required to risk more money for a fixed return. In the example below the New England Patriots are -180 favorites on the [[moneyline]]. A risk of $180 would yield $100 profit for a total return of $280.
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The betting odds for any market will be either a positive or negative number. The negative numbers require an initial risk of that amount in order to profit $100. In the example below the New England Patriots are -180 favorites on the [[moneyline]]. A risk of $180 would yield $100 profit for a total return of $280.
  
 
{| class="wikitable" style="text-align: center; margin: auto;"
 
{| class="wikitable" style="text-align: center; margin: auto;"
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|}
 
|}
  
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Positive numbers will require a risk of $100 in order to profit that amount. Using the same example the Baltimore Ravens are +160 underdogs on the moneyline. A bettor who risks $100 would stand to make $160 profit for a total return of $260. It should be noted that any amount within a sportsbook's limits can be wagered. The $100 base risk and return are simply to make the odds easier to visualize.
  
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The positive numbers require an initial risk of $100 to profit that amount. Wagering on a market with +125 odds would give a $100 bet a profit of $125 for a total return of $225.
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The more favored a market is to win the more negative the American odds will be; the bettor is required to risk larger amounts to yield the same $100 profit. Consequently the more of an underdog a market is the larger the positive number; the bettor will receive a greater return on their $100 wager if it were to win. Here are some example odds with their respective risk, profit, and return:
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The industry standard for the odds of two teams or players with equal odds will be set at -110 for both sides. This means that a bet on either side
 
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Two competing teams with equal moneyline odds would normally be set at -110 due to the bookmaker's commission (known as the [[vig]]). A risk of $110 would yield a $100 profit on either side. The more a team is favored to win the more negative the moneyline odds will become. Odds of -150 would now require a greater risk of $150 to profit $100.
 
  
 
{| class="wikitable" style="text-align: center; margin: auto;"
 
{| class="wikitable" style="text-align: center; margin: auto;"
 
|- style="background-color:#eaecf0;"
 
|- style="background-color:#eaecf0;"
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|'''Moneyline Odds'''
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|'''American Odds'''
 
|'''Risk'''
 
|'''Risk'''
 
|'''Profit'''
 
|'''Profit'''
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|$350
 
|$350
 
|-
 
|-
−
| -200
+
| -125
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|$200
+
|$125
−
|$100
 
−
|$300
 
−
|-
 
−
| -150
 
−
|$150
 
 
|$100
 
|$100
−
|$250
+
|$225
 
|-  
 
|-  
 
| -110
 
| -110
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|$100
 
|$100
 
|$210
 
|$210
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|}
 
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Consequently, the larger the underdog the more positive the odds will be. A moneyline set at +150 will require a smaller risk of $100 to produce a greater profit of $150. The table below visualizes the transition from negative to positive odds:
 
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{| class="wikitable" style="text-align: center; margin: auto;"
 
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|- style="background-color:#eaecf0;"
 
−
|'''Moneyline Odds'''
 
−
|'''Risk'''
 
−
|'''Profit'''
 
−
|'''Return'''
 
 
|-
 
|-
 
| -105
 
| -105
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|$105
 
|$105
 
|$205
 
|$205
 +
|-
 +
| +110
 +
|$100
 +
|$110
 +
|$210
 +
|-
 +
| +125
 +
|$100
 +
|$125
 +
|$225
 +
|-
 +
| +250
 +
|$100
 +
|$250
 +
|$350
 +
|-
 +
| +500
 +
|$100
 +
|$500
 +
|$600
 
|}
 
|}
  
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In the example below the New England Patriots are favored to win with -180 moneyline odds. A bet of $180 would yield a profit of $100 for a total return of $280 in the event of an outright Patriot victory by any margin. The Baltimore Ravens are underdogs with +160 moneyline odds. A wager of $100 would produce a $160 profit and a total return of $260 should the Ravens win.
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The transition between positive and negative odds can be observed in the table above. A wager that features a 1-to-1 return would have +100 odds since a $100 risk returns a $100 profit. However two sides of a betting market with equal odds will instead be set at -110. This is due to the bookmaker's commission known as the [[vig]]. In the example below both sides of the [[spread]] and [[total]] have -110 odds.
  
 
{| class="wikitable" style="text-align: center; margin: auto;"
 
{| class="wikitable" style="text-align: center; margin: auto;"

Latest revision as of 16:41, 1 November 2019

American odds is a format used to display betting odds. Positive and negative numbers are used to indicate potential profit relative to a 100 unit risk. American odds are frequently used in the United States.

How American Odds Work

The betting odds for any market will be either a positive or negative number. The negative numbers require an initial risk of that amount in order to profit $100. In the example below the New England Patriots are -180 favorites on the moneyline. A risk of $180 would yield $100 profit for a total return of $280.

Team Spread Total Moneyline
Patriots.png New England Patriots -3.5 (-110) Over 44.5 (-110) -180
Ravens.png Baltimore Ravens +3.5 (-110) Under 44.5 (-110) +160

Positive numbers will require a risk of $100 in order to profit that amount. Using the same example the Baltimore Ravens are +160 underdogs on the moneyline. A bettor who risks $100 would stand to make $160 profit for a total return of $260. It should be noted that any amount within a sportsbook's limits can be wagered. The $100 base risk and return are simply to make the odds easier to visualize.

The more favored a market is to win the more negative the American odds will be; the bettor is required to risk larger amounts to yield the same $100 profit. Consequently the more of an underdog a market is the larger the positive number; the bettor will receive a greater return on their $100 wager if it were to win. Here are some example odds with their respective risk, profit, and return:

American Odds Risk Profit Return
-500 $500 $100 $600
-250 $250 $100 $350
-125 $125 $100 $225
-110 $110 $100 $210
-105 $105 $100 $205
-101 $101 $100 $201
+100 $100 $100 $200
+101 $100 $101 $201
+105 $100 $105 $205
+110 $100 $110 $210
+125 $100 $125 $225
+250 $100 $250 $350
+500 $100 $500 $600

The transition between positive and negative odds can be observed in the table above. A wager that features a 1-to-1 return would have +100 odds since a $100 risk returns a $100 profit. However two sides of a betting market with equal odds will instead be set at -110. This is due to the bookmaker's commission known as the vig. In the example below both sides of the spread and total have -110 odds.

Team Spread Total Moneyline
Patriots.png New England Patriots -3.5 (-110) Over 44.5 (-110) -180
Ravens.png Baltimore Ravens +3.5 (-110) Under 44.5 (-110) +160
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