Betfair - Understanding The Odds
When punters first join the Betfair betting exchange just about the most confusing features will be the method that the possibilities are displayed. In the UK conventional bookmakers use fractional odds for example 6/4, 2/1, sboarena 100/30 or 33/1. On Betfair a decimal odds method is used 2.5, 3.0,4.3 or 34.0.
You can certainly convert fractional odds into decimal 6/4 is 6 divided by 4 that gives you 1.5 + your stake which = 1. So 6/4 is the same as 2.5 for the exchange. If you consider what happens once you place a wining bet using a bookmaker your provide him with your stake money. He places your bet at the agreed odds, say 4/1. If won by you he offers you four times your stake A�40 as well as your original investment back. On the exchanges you won't ever actually pay your stake to anyone so needless to say it doesn't have to be returned.
The odds for the exchanges tend normally to be with 20% more than those available from the bookies. On outsiders with larger odds the real difference could be considerably greater. Horses pricing 33/1 or 50/1 by bookmakers is frequently bought at three figure odds on the exchanges.
Although the percentages could be better it's to get offset that when your bet or lay is successful you will have to pay 5% commission. His is generally easily offset with the better prices which you re getting this isn't always true when betting on short priced horses.
Because Betfair win, i.e. require a 5% commission from either the backer or layer, no matter the result unlike bookmakers they cannot care the frequency of which won by you. This means that when you are successful there is no danger of experiencing your bank account closed.
The betting exchanges are growing in importance around the globe and should you be considering horse racing and betting you then should go surfing and take a look at the exchanges, especially Betfair.