Fixed Odds Betting in Sports

In the realm of sports betting, there are fixed odds and floating odds. Floating odds would be represented by the point spread, where whether you win or lose your bet is dictated by how a particular team did against the spread. When all is said and done, with floating odds you earn the same amount of money whether the favorite or underdog wins.

Concept Behind Fixed Odds

With fixed odds, if you bet on the underdog you risk less to win more and when wagering on the favorite, you risk more to win less. If you bet on the winner of the game or contest, you win your bet. This is unlike betting the point spread where the favorite has to beat the spread and the team that’s not the favorite can payoff even of they lose the game.

Fixed odds are the closest thing you’ll find in sports betting to real odds. That’s because the risk factor is calculated into the wager and payout amounts. The amount you’re asked to wager represents the likelihood of who will win in that you wager more on the favorite because your cash is less at risk than the person who puts their cash down on the team that’s likely to lose. You get a bigger reward if you bet on the long shot and they win.

Neither is true with the point spread. The point spread is not about playing odds, it is about evening the odds.

Methods of Displaying Fixed Odds

Fixed odds are usually displayed in one of three ways—using the decimal or European method, the fractional or English manner or the moneyline of American way. Here is what each looks like:

Decimal          5.00

Fractional       4/1

Moneyline      +400

All three of these indicate that the odds are 4:1, which means that for every dollar wagered you look to get a payout of $4.00 and a total return of $5.00. The total return represents the payout plus your original wager. The odds displayed above are for a team that would not be favored. With the moneyline, the plus indicates that you are wagering on the underdog and it shows you what you will win on a $100.00 bet.

A favored team might have odds like this:

Decimal          1.25

Fractional       1/4

Moneyline      -400

With these odds you get a payout of $1.00 for every $4.00 bet. The decimal shows what your return on a dollar while the fractional reveals what you’ll make on a $4.00 bet, which is $1.00. The moneyline reveals how much you must wager to make $100. In the moneyline, favored team has a minus displayed in from of the amount to be bet.

Why Fixed Odds Can be Preferable

If you’re wagering on a contest that looks to be fairly even or one in which you feel the point spread is misleading or simply wrong, then going with a fixed odds bet makes sense. In other words, if you think whichever outcome you choose is assured with relying on the spread then fixed odds are a great way to go. Fixed odds are especially good to take if on a possible upset due to the fact that the payoff tends to be very good and the risk minimal.