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European Decimal Odds
Decimal odds (also known as “European” odds, “numerical” odds, or “continental” odds) are popular in continental Europe, Australia, New Zealand, and Canada. These are easier to use and understand. Hits and losers can be spotted instantly by looking at the numbers.
Decimal odds numbers represent the amount won per $1 wagered. For decimal odds, the numbers represent total payouts rather than profits. That is to say, and your Stake is already included in the decimal number (no need to re-add your Stake), making its total payout calculation easier.
To calculate the total (potential) return on stake/equity it can be:
Tp = S * D
Where:
- Tp is the total profit
- S is for Stake (equity)
- D is an odd decimal number
Let’s look at an example that might win the 2020 U.S. presidential election.
Donald Trump: 4.00
Joe Biden: 1.3
These numbers represent how much you can win for every $1 you invest. So, if you bet $100 on Trump to be reelected as president, you could receive a total payout of $400 ($100 x 4.00). This amount includes an initial share of $100, resulting in a net profit of $300.
Likewise, if you successfully bet $100 on Joe Biden, you get a bonus of $130 ($100 x 1.3). Deduct $100 from this return, and you’ll get a net profit of $30.
Here we can see that the bookmaker priced Joe Biden as the favorite to win the election. The higher the total payout (for example, the higher the decimal odds), the less likely the listed candidate will win (the greater the risk).
Sports betting American Football odds American, Fractional and Decimal Odds
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