Editing Odds (section)

===Decimal odds===

The European odds also represent the potential winnings (net returns), but in addition they factor in the stake (e.g. 6/5 or 1.2 plus 1 = 2.2).<ref name="SW1"/>

Favoured in continental [[Europe]], [[Australia]], [[New Zealand]], [[Canada]], and [[Singapore]], decimal odds quote the ratio of the payout amount, ''including'' the original stake, to the stake itself. Therefore, the decimal odds of an outcome are equivalent to the decimal value of the fractional odds plus one.<ref name="Betstarter"/> Thus even odds 1/1 are quoted in decimal odds as 2.00. The 4/1 fractional odds discussed above are quoted as 5.00, while the 1/4 odds are quoted as 1.25. This 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. When looking at decimal odds in betting terms, the underdog has the higher of the two decimals, while the favorite has the lower of the two. To calculate decimal odds, you can use the equation ''Payout = Initial Wager × Decimal Value''<ref>{{Cite web |date=25 January 2022 |title=Understanding Sports betting odds and how to read them |url=https://theathletic.com/2497657/2022/01/25/understanding-sports-betting-odds-and-how-to-read-them/ |access-date=25 September 2022 |website=The Athletic}}</ref>''.'' For example, if you bet €100 on Liverpool to beat Manchester City at 2.00 odds the payout, including your stake, would be €200 (€100 × 2.00). Decimal odds are favoured by [[betting exchanges]] because they are the easiest to work with for trading, as they reflect the reciprocal of the probability of an outcome.<ref name="Cortis"/> For example, a quoted odds of 5.00 equals to a probability of 1 / 5.00, that is 0.20 or 20%.

Decimal odds are also known as ''European odds'', ''digital odds'' or ''continental odds.''<ref name="wbx"/>