Betting Odds Explained: Guide To How Betting Odds Work

| August 15, 2021

The link between risk and reward is reflected in horse racing betting odds. To put it another way, the odds show you how much money you stand to win if you place a bet.

The first step in becoming a bettor is to understand how horse racing betting odds work. This article will go through the subject, starting with a basic guide to understanding horse racing odds and progressing to more information that bettors will need to make informed wagers.

It isn’t as difficult as it may appear to learn how to read the odds in horse racing betting. It helps if you know how to work with fractions, but you don’t need to be a mathematician to figure out how horse races bettings odds work like in kentucky derby betting odds.

Betting in horse racing is underpinned by the link between risk and reward

How Horse Racing Betting Odds Work

Horse racing betting odds are primarily fractions when it comes to mathematics. In the case of a horse priced at 10-1, the price can be read as 10/1. Additionally, a horse’s price can be expressed as 3-5, which can be read as 3/5.

The fraction expresses the relationship between the amount of money you stand to win and the amount of money you lose. When it comes to horse racing odds, the first number (the numerator) indicates how many units you stand to win, as well as the second number (the denominator) indicates how many units you must risk winning.

For example:

  • 10-1 odds mean that for every one unit wagered, you will win ten units.
  • 7-2 odds mean that for every 2 units wagered, you will win 7 units.
  • 1-5 odds mean that you will win one unit for every five units wagered on the game.

If the first number is greater than the second number, your net profit will be greater than the amount of money you wagered on the game. And if the second number is greater than the first, you are placing a bet on the “odds-on favourite,” and your return will be less than the amount you risked. 

The same thing happens when you bet on heavily favoured horses, you stand to win less money because everyone is betting on the same horse as you. Alternatively, if the odds-on favourite wins, the betting pool will be divided among many winning tickets, resulting in a smaller share of the pool for everyone.

How to Determine Odds in Horse Racing

There are various factors that the bookmakers consider when determining the odds for the various selections in the race. Horses that are in excellent form and have won numerous high-profile races will have shorter odds as they have more experience and are much more proven.

Trainers and jockeys of higher calibre will likely ride a horse with lower prices. The horse’s bloodline is also taken into consideration, as the offspring of legendary horses with a strong pedigree will be predicted to have a greater chance of succeeding in the most prestigious races in the world.

When it comes to wagering, market movers provide excellent insight because they show them where the money is going and which horses have a good chance of winning. Finding the most advantageous time to place a wager is an important consideration that should be taken into consideration if you want to receive the best possible odds for your selection.

Calculating Payout Odds

Whenever you want to know how much money you could win from a bet, multiply your targeted wager by a fraction expressed by the odds. If your wager is successful, the number you receive determines the net profit you will receive if your wager is successful.

To calculate your net profit, all you should do is to multiply your bet by the whole number you chose.  For example,  a $2 wager at the odds of 30/1 would result in a profit of $60 ($2 multiplied by 30/1). When you factor in the return of your initial investment, the total return is $62. As an example, a $2 bet placed at 10/1 would return $20 in addition to the initial wager.

When the odds are not in the form of nice and simple whole numbers, things become a little more complicated. Horse racing odds of 3-4 and 7-5, for example, can be a little difficult to predict.

The payout odds for racebooks can be understood in another way. It shows you how much money you stand to win, how much you have to risk to win that much money.

To Conclude

With a thorough understanding of horse odds, you should be able to determine your chances of winning as well as how much money you could make if you do so quickly. Obviously, odds differ from horse to horse and from race to race, it depends on which outcome the bookies believe is the most likely to occur. Therefore, ensure that you are looking at the most current odds available before placing a bet on horse racing events.

Category: Betting

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