Understanding Odds

In the world of betting, the odds are used by the bookmakers to reflect the likelihood that an event will happen - for example, for a horse to win a race, or a football team to score a goal. The odds are often referred to as the price.

For example, if a horse is offered odds at 3/1, the bookmakers are predicting that for every 4 times the race is run, the horse would lose 3 times, and win just once, giving it an overall 25% chance of winning.

You may often hear that something has long or short odds. If a horse is said to have 'long odds', this simply means that it is very unlikely to win the race. Conversely, short odds (e.g. 2/1) indicate that a horse has a good chance of winning.

There are three levels of odds:

1. Odds Against

For example, 4/1 (four-to-one). If you win a bet at odds against, you will receive a return which is more than double your original stake. In this example, a £1 stake would give you a return of £4, plus your original stake of £1, making a total of £5.

2. Evens (1/1)

When the odds are described as Even Money, the bookmaker is offering a return that is exactly double your original stake. If your stake is £1, the bookmaker will return £1 plus your stake, making a total of £2.

3. Odds On

For example, 1/4 (four-to-one on). If the price is 'odds-on', you will receive a return that is less than double the amount staked. A successful £1 bet at 1/4 will return just 25p plus your stake, making a total of £1.25. The word 'on' indicates that the odds are reversed.