Introduction
Odds can be quite confusing and put a lot of people off betting. Odds are numbers, which are used to calculate how much you can win at a given stake. In general the rule is the higher odds the lower probability of winning.
Basically odds can be presented in three different ways. Depending on which markets the bookmaker targets, odds are presented by either the British, European or the American standard. Some bookmakers support more than one of these standards.
Please note, that when converting odds into the British standard, round-off errors may occur, since some odds don't have an exact translation into British-style fractions.
It is very important to distinguish between the payout to your betting account after a win, and your winnings, which is the payout minus your stake.
British standard: Fractional odds
These are the traditional odds you see in the window on the street in Britain such as 10/1 or 9/4. Simply treat them like fractions. If you divide the first number by the second, you'll get a multiplier. For example, 10/1 means that whatever you stake on this bet you'll get 10 times back if you win. So, € 1 on a 10/1 bet will give you € 10 winnings. For € 1 on 9/4 you just need to divide 9 by 4, giving you a multiplier of 2.25 - if you stake €1 on 9/4 you'll return winnings of € 2.25.
When you bet and win you also get your stake back on top of your winnings. So, € 1 at 10/1 will give you € 10 (winnings), plus your € 1 stake back = € 11 (total return).
And € 1 at 9/4 will give you € 2.25 (winnings), plus your € 1 stake back = € 3.25 (total return).
Conclusion: British odds show winnings, or how much money we win minus our stake.
European standard: Decimal odds
Bookmakers are increasingly quoting odds in a decimal format.
Decimal odds are simply a multiplier by which you can multiply your unit stake and calculate your total returns (winnings plus returned stake). It's supposed to make things simpler since you don't have to deal with fractions and calculating winnings using strange fractions like 9/4.
If a team are 10/1 in fractional odds, this would equal 11.00 in decimal odds. If you put € 1 on an outcome at 11.00 you'll win € 11 total returns.
However if you like to keep your winnings and total returns (stake plus winnings) calculations separate (for example if you want to compare winnings to stake as a percentage of stakes), then stick to fractional.
Most online bookmakers will allow you to set your odds preference once you've joined, so you need not worry if you prefer one or the other, you'll be able to choose.
Conclusion: European odds show payout, ot the total amount of money we win together with our stake.
American standard
American odds are divided in negative and positive odds. Like British odds they show us our winnings not the payout.
Negative odds show how big stake is needed for a winning of 100 units, when betting on a favourite. Positive odds show how winnings are if we bet 100 units on the underdog.
Conclusion: American odds show winnings, or how much money we win minus our stake.
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