Understanding decimal odds

I intend to write a guide to lay betting, as it is a subject that confuses many people.

However, in order to understand lay betting, you first need to know how decimal odds work as this is the system used by Betfair.

I have to say, when I first began betting on football and horses, decimal odds in the UK were practically non-existent. However, they are somewhat more widespread now and many people will be familiar with them.

Still there are plenty enough people who grew up with fractional odds and may even avoid sites like Betfair to make this article worthwhile.

It is very simple to understand though. Quite simply, you multiply your stake by the number shown and this is your return. Bear in mind though that you need to deduct the value of your stake to calculate your actual profit.

So if a bookie is offering 3.0 in decimal odds (which would be 2/1 as fractional odds) and you place five pounds, you will receive a profit of £10.

It's as simple as that. A couple of things to bear in mind though - always remember when you see, for example, 25.0 you will only actually get 24 times your stake back. 

Also remember to deduct that unit when the odds are below 2.0 (ie. evens). It's easy for beginners to fall into the trap of thinking 1.5 will return a profit equivalent to 6/4 when in fact the fractional equivalent is 1/2.

Below is a table which shows the conversion between fractional and decimal odds.