Head-to-head betting, also known as two-way betting, involves supporting or placing one of two outcomes on the direct market. We’ll explain the match betting market and how to calculate your payout.

With head-to-head betting, you are betting on the game’s outcome, win or lose. Like 1X2 betting, head-to-head betting does not seek to balance any differences in perceived quality between teams or players, unlike Asian handicaps or totals.

How to calculate your back bet odds in head-to-head markets

You can calculate your return payout in head-to-head markets in two easy steps. Tell you back, Rafael Nadal, to beat Novak Djokovic at $100 at 5.50 in the French Open final.

• Step 1: Calculate the return, excluding commissions

The calculation is as follows:

Odds * Stake = $ return

So in our example: 5.50 * 100 = $550

So, if Nadal wins, your bet will return $550 – including your stake, and you’ll make a $450 profit.

However, since betting exchanges do not add profits to the odds, you must now subtract commissions from your Profits, unlike bookmakers.

• Step 2: Calculate the commission return

The calculation is as follows:

((Stake * (Odds -1)) * Commission rate

In our example that would be: ((100 * (5.50 -1)) * 2% = $9 commission

Therefore, you will have charged a commission of $9, which means your return is $541 – a profit of $441.

If the match ends with a Djokovic win, you lose your stake and $100 stake.

Even when commissions into the odds are Factored, you’ll often find the best prices on Smarkets, the result of our industry’s lowest 2% commission on your winning bets only.

Once you learn and know how to calculate betting profit, you can compare bookmakers and exchange Profits to determine who offers you the best value odds.

How to calculate your betting odds on the head-to-head market

Unlike bookmakers betting against the market, you can also be sure of the outcome. For example, let’s say you have Djokovic at $100 against Nadal at 1.68.

Similar to calculating your return payout, betting has two stages.

• Step 1: Calculate the return, excluding commissions

The calculation is as follows:

Stake = profit

So in our example: $100 = $100

So if the game ends with Nadal winning, your bet will win, giving you $100 in profit (before commissions).

• Step 2: Calculate the commission return

Now you have to calculate your betting profit, which includes exchange commissions. In Smarkets – 2% commission – you can use the following calculation:

Stake * 0.98 = profit

In our example that would be: 100 * 0.98 = $98

Therefore, you will have charged a commission of $2, which means your profit is $98.

You should be informed of your responsibilities when betting on the exchange’s results and the amount you will pay if the match ends with Djokovic winning. This article explains how to calculate the liability of an Exchange.

In this example, if the match ends with Djokovic winning, your liability will be deducted, resulting in a loss of $68.

Apply this to betting

You now understand what the head-to-head betting market is, how to place tails betting and how to calculate your payouts – giving you the best chance of profiting in this betting market.