Editing Fixed-odds betting (section)

==Types of odds offered==
There are three widely used means of quoting odds:

===Fractional odds===
Favoured by [[bookmaker]]s in the [[United Kingdom]] and [[Ireland]] and common in [[horse racing]], fractional odds quote the net total that will be paid out to the winning bettor relative to the stake. The term "fractional odds" is something of a misnomer, especially when visually reinforced by using a slash (as opposed to, ''e.g.'', a colon or the word "to" or "on") to separate a potential gain from the amount that a bettor must wager in order to receive it upon a win, because the "fraction" in question represents not the odds of winning or even the reciprocal of the odds of winning but rather the fraction (for any odds longer than "even money" or chances of winning less than 50%, an [[improper fraction]]) of the amount at stake that the upside outcome represents. This fraction may be derived by subtracting 1 from the reciprocal of the chances of winning; for any odds longer than "even money," this fraction will be an [[Improper fraction|improper]] one.<ref>{{cite web | url=http://www.goal.com/en/news/2994/betting/2011/01/10/2101368/betting-school-understanding-fractional-decimal-betting-odds | title=Betting School: Understanding Fractional & Decimal Betting Odds | publisher=Goal | date=10 January 2011 | access-date=27 March 2014}}</ref><ref name=cortis>
{{cite journal |last1=Cortis |first1=Dominic |title=Expected Values and variance in bookmaker payouts: A Theoretical Approach towards setting limits on odds |url=https://www.um.edu.mt/library/oar/bitstream/123456789/21471/1/987-3242-5-PB%20%282%29.pdf |year=2015 |volume=9 |series=1 |journal= Journal of Prediction Markets |pages=1–14 |doi=10.5750/jpm.v9i1.987 |doi-access=free }}</ref> Odds of 4:1 ("four-to-one" or less commonly "four-to-one ''against''") would imply that the bettor stands to make a £400 profit on a £100 stake. If the odds are 1:4 (read "one-to-four", or alternatively "four-to-one ''on''" or "four-to-one ''in favor''"), the bettor stands to make £25 on a £100 stake. In either case, ''against'' or ''on'', should he win, the bettor always receives his original stake back, so if the odds are 4:1 the bettor receives a total of £500 (£400 plus the original £100). Odds of 1/1 are known as ''evens'' or ''even money''.

Not all fractional odds are traditionally read using the [[lowest common denominator]]. Perhaps most unusual is that odds of 10:3 are read as "one-hundred-to-thirty".

Fractional odds are also known as ''British odds'', ''UK odds'',<ref name=wbx /> or, in that country, ''traditional odds''.

===Decimal odds===
Favoured in [[Continental Europe]], [[Australia]], [[New Zealand]] and [[Canada]], decimal odds differ from fractional odds by taking into account that the bettor must first part with their stake to make a bet; the figure quoted, therefore, is the winning amount that would be paid out to the bettor.<ref name="cortis" /><ref>{{cite web | url=http://www.topbettingreviews.com/fixed-odds-and-due-column-betting/ | title=What is Fixed odds betting and Due Column betting? | publisher=TBR | access-date=27 March 2014 | author=D., Chris}}</ref> Therefore, the decimal odds of an outcome are equivalent to one plus the decimal value of the fractional odds; in the absence of built-in house advantage to cover overhead, profit margins, or (for an illegal enterprise) compensation for the fact that both chances of prosecution and penalties in the event of conviction tend to be higher for bookmakers than for clients, the decimal odds associated with a given outcome would be the decimal expression of the reciprocal of what the offering party assesses to be the outcome's chance of occurring.<ref>{{cite web|title=Fractional Odds |url=http://betstarter.com/sportsbetting/Fractionalodds.asp#3 |work=betstarter.com/ |access-date=27 March 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140402082613/http://betstarter.com/SportsBetting/FractionalOdds.asp/ |archive-date=April 2, 2014 }}</ref> Thus, even odds 1/1 are quoted in decimal odds as 2. The 4/1 fractional odds discussed above are quoted as 5, while the 1/4 odds are quoted as 1.25. It is considered to be ideal for [[Parlay (gambling)|parlay]] betting because the odds to be paid out are simply the product of the odds for each outcome wagered on.

Decimal odds are also known as ''European odds'', ''digital odds'' or ''continental odds'' and tend to be favoured by [[betting exchanges]] because they are the easiest to work with for trading, in this case the purchase and sale of upside and downside risk.<ref name=wbx>{{cite web|title=Betting Odds Format |url=https://m.wbx.com/Help.aspx?IC=50176&S=&ID=20012 |publisher=World Bet Exchange |access-date=27 March 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140502002250/https://m.wbx.com/Help.aspx?IC=50176&S=&ID=20012 |archive-date=May 2, 2014 }}</ref>

===Moneyline odds===
Moneyline odds are favoured by [[United States]] bookmakers and as such, are sometimes called ''American odds''.<ref name="cortis" /> There are two possibilities: the figure quote can be either positive or negative. Moneyline refers to odds on the straight-up outcome of a game with no consideration to a [[spread betting|point spread]].

;Positive figures
:If the figure quoted is positive, the odds are quoting how much money will be won on a $100 wager (done if the odds are better than even). Fractional odds of 4/1 would be quoted as +400, while fractional odds of 1/4 cannot be quoted as a positive figure.

;Negative figures
:If the figure quoted is negative, the moneyline odds are quoting how much money must be wagered to win $100 (this is done if the odds are worse than even). Fractional odds of 1/4 would be quoted as −400 while fractional odds of 4/1 cannot be quoted as a negative figure.

;Even odds
:Even odds are quoted as +100 or −100. Some but not all bookmakers display the positive symbol.