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Fractional odds is a format used to display betting odds. The potential profit of a given bet relative to the risk is indicated by a reduced fraction. While fractional odds can be used to describe the odds of any betting market it is primarily used when discussing [[long odds]] such as [[future]]s.
== How Fractional Odds Work ==
The betting odds are displayed as a reduced fraction. The potential profit of a given bet can be calculated by multiplying the fractional odds by the initial risk. In the example below the Los Angeles Lakers have 1/9 odds on the [[moneyline]]. Betting $300 would yield $100 profit for a total return of $400. This is calculated by multiplying the fractional odds (1/9) by the bet size ($300). The more favored a side is the smaller the fraction will be.
{| class="wikitable" style="text-align: center; margin: auto;"
|- style="background-color:#eaecf0;"
|colspan="2"|'''Team'''
|'''Spread'''
|'''Total'''
|'''Moneyline'''
|-
|[[File:Lakers.png|25px]]
|Los Angeles Lakers
| -11.5 (10/11)
| Over 217.5 (10/11)
| 1/9
|-
|[[File:Grizzlies.png|20px]]
|Memphis Grizzlies
| +11.5 (10/11)
| Under 217.5 (10/11)
| 6/1
|}
Consequently the less favored a side of a betting market is the larger the fraction will be. In the same example the Memphis Grizzlies have 6/1 odds on the moneyline. A winning bet would turn the same $300 risk into $1,800 profit. The following table demonstrates the calculations necessary to determine the profit and total return for various fractional odds relative to a fixed $100 stake:
{| class="wikitable" style="text-align: center; margin: auto;"
|- style="background-color:#eaecf0;"
|'''Fractional Odds'''
|'''Risk'''
|'''Profit Calculation'''
|'''Return Calculation'''
|-
|1/4
|$100
|$100 x 1/4 = $25
|$25 + $100 = $125
|-
|1/2
|$100
|$100 x 1/2 = $50
|$50 + $100 = $150
|-
|10/11
|$100
|$100 x 10/11 = $91
|$91 + $100 = $191
|-
|1/1
|$100
|$100 x 1/1 = $100
|$$100 + $100 = $200
|-
|2/1
|$100
|$100 x 2/1 = $200
|$200 + $100 = $300
|-
|5/1
|$100
|$100 x 5/1 = $500
|$500 + $100 = $600
|-
|10/1
|$100
|$100 x 10/1 = $1,000
|$1,000 + $100 = $1,110
|-
|25/1
|$100
|$100 x 25/1 = $2,500
|$2,500 + $100 = $2,600
|}
A wager with a 1-to-1 return would have 1/1 fractional odds as a $100 risk would net a $100 profit. However two sides of a betting market with equal fractional odds will likely be set at 10/11. This is due to the bookmaker's commission.
Fractional odds are primarily used when discussing long odds such as large underdogs or futures. [[American odds]] or [[decimal odds]] are preferred when discussing shorter odds. Smaller fractions can be difficult to visualize. It is easier to interpret -205 or 1.49 in conversation instead of 21/43.
== How Fractional Odds Work ==
The betting odds are displayed as a reduced fraction. The potential profit of a given bet can be calculated by multiplying the fractional odds by the initial risk. In the example below the Los Angeles Lakers have 1/9 odds on the [[moneyline]]. Betting $300 would yield $100 profit for a total return of $400. This is calculated by multiplying the fractional odds (1/9) by the bet size ($300). The more favored a side is the smaller the fraction will be.
{| class="wikitable" style="text-align: center; margin: auto;"
|- style="background-color:#eaecf0;"
|colspan="2"|'''Team'''
|'''Spread'''
|'''Total'''
|'''Moneyline'''
|-
|[[File:Lakers.png|25px]]
|Los Angeles Lakers
| -11.5 (10/11)
| Over 217.5 (10/11)
| 1/9
|-
|[[File:Grizzlies.png|20px]]
|Memphis Grizzlies
| +11.5 (10/11)
| Under 217.5 (10/11)
| 6/1
|}
Consequently the less favored a side of a betting market is the larger the fraction will be. In the same example the Memphis Grizzlies have 6/1 odds on the moneyline. A winning bet would turn the same $300 risk into $1,800 profit. The following table demonstrates the calculations necessary to determine the profit and total return for various fractional odds relative to a fixed $100 stake:
{| class="wikitable" style="text-align: center; margin: auto;"
|- style="background-color:#eaecf0;"
|'''Fractional Odds'''
|'''Risk'''
|'''Profit Calculation'''
|'''Return Calculation'''
|-
|1/4
|$100
|$100 x 1/4 = $25
|$25 + $100 = $125
|-
|1/2
|$100
|$100 x 1/2 = $50
|$50 + $100 = $150
|-
|10/11
|$100
|$100 x 10/11 = $91
|$91 + $100 = $191
|-
|1/1
|$100
|$100 x 1/1 = $100
|$$100 + $100 = $200
|-
|2/1
|$100
|$100 x 2/1 = $200
|$200 + $100 = $300
|-
|5/1
|$100
|$100 x 5/1 = $500
|$500 + $100 = $600
|-
|10/1
|$100
|$100 x 10/1 = $1,000
|$1,000 + $100 = $1,110
|-
|25/1
|$100
|$100 x 25/1 = $2,500
|$2,500 + $100 = $2,600
|}
A wager with a 1-to-1 return would have 1/1 fractional odds as a $100 risk would net a $100 profit. However two sides of a betting market with equal fractional odds will likely be set at 10/11. This is due to the bookmaker's commission.
Fractional odds are primarily used when discussing long odds such as large underdogs or futures. [[American odds]] or [[decimal odds]] are preferred when discussing shorter odds. Smaller fractions can be difficult to visualize. It is easier to interpret -205 or 1.49 in conversation instead of 21/43.