Are you new to the betting world or do you just need a refreshment? This is the right guide for you.
We hope you are going to use this information for Matched Betting. We do not encourage gambling on events without using the Matched Betting technique. That involves risks, exactly what we want to avoid with Matched Betting.
What is a bet?
When you place a bet, you predict the outcome of an event (such as a football match) and you place money against someone else's, hoping that the match's result will be the one you predicted. If this is the case, you win money, if not, you lose.
What are betting odds?
Odds represent the probability that an event will happen. For a match there are three possible outcomes: win, draw or lose. For each of these outcome, there are odds related to the probability of that outcome occurring. The higher the possibility that the event will happen, the lower the odds and vice-versa.
When you place a bet, you calculate your winnings by multiplying the money you put in (a stake of the bet) by the odds of that event. Therefore, if an event is really likely to happen, the odds will be low and you will not win a lot of money. Conversely, if the event is unlikely to happen, the odds will be very high and the wins will be high as well.
Let's look at a real-life example to understand better.
Note: In football 1 stands for a team playing at home, X stands for draw and 2 stands for an away team.
There's a match: Chelsea vs. Newcastle. These are the odds:
1-Chelsea winning: 1.5
2-Newcastle winning: 9
What does this mean? If you bet on Chelsea, you will win 1.5 times the amount you bet. If you bet on the draw 5 times the amount and if you bet on Newcastle 9 times!
The odds are due to the fact that Chelsea is considered a stronger team than Newcastle. Thus, the bookmakers consider Chelsea's win to be more likely and will give you less money if you bet on it. However, if you bet on Newcastle, the team which is less likely to win, you will gain more money in the case of their win!
If you bet 10€ on Chelsea, you will get your stake (10€) times the odds (10€ x 1.5 = 15€). Your gain is calculated by subtracting the initial investment (10€ x 1.5 = 15€ -10€ =5€). So, in this case, you will gain 5€. If Chelsea does NOT win, you will have lost the 10€.
Sometimes you will see odds written in different forms, for example decimal (e.g. 5/7) or American (e.g. +100). We find the decimal odds (for example 1.5) the easiest odds to understand. If you find a website with odds that are not decimal, we suggest switching to decimal ones. You will find a button on the website to do so.
How are odds related to probability?
If you invert the number (divide one by the number), you will have an estimated probability of that event happening, in our example:
1/1.5 = 0.66 -> 66%
1/5 = 0.2 -> 20%
1/9 = 0.11 -> 11%
total = 97%
Hey! It does not add up to 100%! It's true. That is because bookmakers do not accept bets for free, the difference between the real probability and the probability indicated in the odds is where the bookmakers make money. That is also why betting on all the outcomes usually results in a loss of money.
With Matched Betting you will systematically bet on all the outcomes. As we have just seen, betting proportionally on all the outcomes will not result in any profit for you, but would result in a small loss. How do you earn money with Matched Betting then? From the bonus offered by bookmakers! Let's see how the method works in the next section.