Learn about Different Types of Gambling against Fixed Odds:

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Fixed Odds Gambling

Fixed odds gambling is wagering against odds offered by a bookmaker or a bet exchange at the moment of betting or when the race or game starts. The latter type of fixed odds gambling is called the starting price.

In a well balanced betting book, the sum of all possible outcomes exceeds 100% and profits the bookmaker. Such exceed is commonly called an overround. If the book is not balanced correctly, the bookmaker will have to pay out more winnings than the total stake or, on the contrary, he will win more money than was expected. These situations happen because outcome of each game depends on many factors, including luck, and it is impossible to predict the exact odds of the competition. So, the book is composed according to the view and the knowledge of the bookmaker, which may not always be absolutely correct.

Betting exchanges act similar to a stock exchange. Odds are not set by a bookmaker, but defined as a result of trading between individual bettors. This leads to quoted odds that with many bets made usually become very close to the real odds.

There are three accepted types of quoting odds:

Fractional Odds: Represent the relation between the sum of the winning and the bet. For example, 1/4 (four-to-one) means that a players who wagers 100 dollars will earn 400 dollars (and will receive his 100 dollars back) in the case of success, while 1/4 means, that 100 dollars will produce 25 dollars income if the player wins. 1/1 odds, that double the player's bet in the case of winning are commonly called even odds. Fractional odds are most commonly used in U.K. and are called traditional odds there, while in the rest of the world such odds are called British or U.K. odds.

Decimal Odds: Work similar to fractional odds, but represent the decimal value and add 1, counting the original bet together with the winning. So, in decimal odds, even odds will be quoted as 2, 4/1 odds as 5, and 1/4 odds as 1.25. Decimal odds are more exact and therefore widely used by betting exchanges, where many bets are made. Decimal odds are also used by European and Canadian bookmakers and are known as European odds in the world and continental odds in U.K.

Moneyline Odds: Quote how much the odds are better or worse that even odds. If odds are worse than even, Moneyline odds will have a negative value and will quote how much money must be wagered to win 100 dollars. If odds are better than even, Moneyline odds will be positive and will represent how much money will be won, wagering 100 dollars. For even odds Moneyline odds will be 100 or -100, for 4/1 they will be 400, and for 1/4, -400. Moneyline odds are common in United States and therefore often called American Odds.

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