Are you interested in finding further value in betting markets ?
A clear understanding of how to convert odds into their implied probabilities is the key to this.
OK, but what is Implied Probability?
Implied probability is a conversion of betting odds into a percentage. What implied probability does is, it takes into account the bookmaker's’ margin. Than they anticipate the expected probability of an outcome occurring.
Implied Probability = Potential Value in a Betting Market
The final product of your calculations will reveal that if the implied probability is less than your assessment , then it represents betting value.
In this article we will meticulously go through how the calculate the implied probabilities, the different odd formats and most importantly how to apply them to your own bets.
Why Should You Convert Odds Into Their Implied Probabilities?
The main reason to convert odds into their implied probabilities is because it demonstrates value in potential betting markets.
But why is placing value on betting markets important ?
Well, picture this. Imagine you transfer a £100 a week to an investment fund. Every week you pour out money but after a few months, you see zero increase in your bank account. You begin to suspect that this might not be the right fund for you.
This is most likely the scenario if you fail to convert odds into their implied probabilities when placing bets. The problem is that, you have the funds but you haven’t found the right channel to make the most out of them.
You need to find the value in your investment fund and this case the betting markets.
If you’re currently not implementing implied probabilities odds to your wagers than the chances of you cashing out are not going to increase.
In the competitive world of online sports betting, taking the time to calculate these odds will help you become a long term winner.
Imagine if you could predict the outcome of the odds in a sports event, your bets will be more worthy and lucrative. This is exactly what converting your odds to their implied probabilities will yield.
There are 3 basic steps that must be in place to be to convert odds;
A clear understanding of how you want your odds to be converted. Either as a decimal, fraction or American
Convert the odds to their implied probability through the calculator. Extremely easy to use.
Convert the implied probability to your chosen odds format.
Time to Calculate
Now that you have a better picture of how converting your into implied probabilities will boost your bets, it’s time to start calculating the odds.
There is an Odds Conversion Calculator available. It’s the perfect platform to login all of the numbers and let the calculator do all the work for you.
A total of six odds formats are supported including decimal, fractional and American odds. Just choose which bracket to place the odds in and press ‘ Convert’.
Converting Decimal Odds
Let’s shift our focus on decimal odds for the time being.
Decimal odds are a result on how much you stand making for every single unit placed.
If Bet365 odds of 1.65 for Team A to win. This means that for every 1.00 you bet on that particular outcome, you will receive a profit of 0.65 should Team A win.
Multiplied then by 100 to express as an implied probability percentage of 60.6%.
Converting Fractional odds
These are the most conventional betting odds.
Fractional odds are a straightforward reflection of betting odds.
So for example, let's say bookmaker Betfair is offering odds of 5/2 for a particular horse to win an upcoming race.
The odds of 5/2 means that for every 2 units that you bet, you will receive 5 back as profit. So if you bet €200 on that horse, you would have received €500 profit in return plus your original stake of €200.
Multiplied then by 100 to express as a implied probability percentage of 28.57%.
Thoroughly understanding how to convert odds into their implied probabilities is a tool you will turn to in your future bets.
Sure there are many other tools that you could use, but converting the odds will train you to think more intuitively when it comes to anything betting.
Take your bets to the next level by finding value in the betting markets.
Remember that if the bookmaker presents implied probabilities that are less than your own calculations, than that outcome represents a value betting opportunity.
Invest in your bets and place value in your wagers.