To calculate probability that is implied in betting
Finding out how to calculate indicated probability from gambling odds is key to assessing the potential value in a gambling market.
Implied odds is a conversion of betting odds into a percentage. It takes into account the bookmaker margin to express the expected probability of an outcome occurring.
Knowing how to convert gambling odds into suggested probabilities is essential for betting as it helps you evaluate the potential value on a particular market. Once converted, if the implied probability is less than your evaluation, then it reflects betting worth.
The most usual chances formats are American and fractional. The formulas below explain how to convert chances to implied probabilities.
For the examples below we will use Smarkets odds for the 2016 Australian Open final between Andy Murray and Novak Djokovic:
Player Decimal odds Fractional odds American chances probability Djokovic 1.20 1/5 – 500 83.3percent Murray 5.50 9/2 +450 18.1%
Read more here: http://www.yousefi.us/?p=2242