**1.2 How betting odds show you the money you win**

There are three main types of betting odds:

1) Fractional

2) Decimal

3) Money line odds.

Betting odds is of critical importance because it allows you to understand what your winnings will be.

**Fractional Odds**

The expression of this type of odds is A/B. For every value of B that you bet, you will win A, plus the return of your stake.

For example:

Fractional odds 2/1 means that for every 1€ you bet, you will win 2€.

**Decimal Odds**

The expression of this type of odds is:

**Returns** = (odds * stake)

Net Profit = (Returns) – (stake)

Or

**Net Profit** = (odds-1.00) * stake

For example:

Decimal odd = 3.0

Stake = 10.0€

Returns = (3.0 * 10.0€)= 30€

Net Profit = 30€-10€=20€

Decimal odds are a simple reflection of the return you will receive for each single unit placed.

For example, odds 1.65 for an event to win, means that for every 1.00€ you bet on that particular outcome, you will receive a profit of 0.65€.

**Money line Odds**

These are by far the most common form of odds in North America for sports betting. They are expressed as numbers greater than 100, and they can be either a positive or negative number.

**Positive** money line:

When a money line is a positive number then the odds are the amount you would win if you were to bet $100 and were correct.

For example, a money line of **+200** would mean that you would make a profit of **$200** if you bet **$100** and were correct. That's also equivalent to fractional odds of 2/1 and decimal odds of 3.

**Negative** money line:

A negative money line represents the amount that you would have to bet in order to win $100 if you were correct.

For example, a **-200** money line means you would win **$100** if you bet **$200** and won. It is also equivalent to fractional odds of 1/2 and decimal odds of 1.5.

In this lessons we are going to deal only with decimal odds.