Fractional Odds | What Are Fractional Odds? How Do They Work?

Fractional odds, also known as traditional odds or British odds, are a popular way of expressing the likelihood of an event occurring in sports betting. Fractional odds represent the ratio of the amount that will be won relative to the amount staked. They are commonly used in the United Kingdom, Ireland, and other countries that follow the British betting tradition.

Fractional odds are expressed in the form of a fraction, such as 5/1, 3/2, or 7/4. The first number in the fraction represents the amount that will be won if the bettor places a stake equal to the second number. For example, if the odds are 5/1 and a bettor places a stake of £1, they will win £5 if the bet is successful, plus they will get their original £1 stake back, resulting in a total payout of £6.

In the example of 7/4 fractional odds, working out the profit is not immediately intuitive. In this case a £1 bet would return a total of £2.75 and a profit of £1.75. To reach those values, you must divide the numerator by the denominator, which is 7/4 = 1.75. Then multiply this value by the stake of £1 to produce the profit amount of £1.75. By adding back the £1 stake, the total return is £2.75.

The fraction can be converted as a decimal or percentage. To convert fractional odds to a decimal, divide the first number by the sum of the two numbers in the fraction. For example, to convert 5/1 to a decimal, divide 5 by (5+1), which gives 0.83. To convert fractional odds to a percentage, multiply the decimal equivalent by 100. In this example, the percentage odds would be 83%.

Fractional odds can also be used to determine the implied probability of an event occurring. To calculate the implied probability of fractional odds, divide the second number in the fraction by the sum of the two numbers and then multiply by 100. For example, if the odds are 5/1, the implied probability of the event occurring would be (1 / (5 + 1)) x 100 = 16.67%.

It is important to note that fractional odds are just one of several ways to express betting odds, and different countries and bookmakers may use different systems. It is also important to understand the concept of value in sports betting, which involves finding odds that are better than the true probability of an event occurring in order to make a profit over the long term.