So, your friend told you about this new platform for sports betting? You login, see a bunch of numbers and realize quickly you’re in the wrong place. I mean passing math class was enough numbers for a lifetime, why would someone choose to do this in their spare time? We get it, but it’s not nearly as complicated as it looks. So, let’s break it down…
You’ve likely been acclimated to the marketplace concept via crypto or the stock markets. In those instances, every asset has a price. With BettorEdge, every position you purchase in a team also has a price, often referred to as probability or odds. As you look across different countries, there’s multiple different numerical ways to view the probability or odds. Let’s start by talking about probability and use some more comment events.
The Coin Flip
If Jerry and Elaine were betting on a coin landing heads or tails, they’d both agree there’s a 50% chance (or probability) the coin lands heads (ignoring the .016% chance of the coin landing on it’s side for simplicity).
So, Jerry puts $10 on heads and Elaine puts $10 on tails. Winner takes the pot of $20. It lands tails. Jerry wins.
Now, what happens when Jerry gets up big, claims he’s on a heater and wants something more complicated? Like the roll of a dice?
Roll of a Dice
Jerry claims he can call the roll of the dice. He bets $10 for the roll to be a ‘one’. Should Elaine be able to bet $10 for the to win $20 for the dice to land anything but ‘one?’
Jerry most likely wouldn’t agree to this situation as Elaine has a higher probability to win (5 sides compared to 1 side). Accordingly, Elaine will statistically win 5 out of 6 times, or an 83.3% probability. Meanwhile, Jerry has a 16.7% probability of landing a ‘one’. Accordingly, Jerry should get a better payout if his outcome is true. He should be able to bet $10 to win $60. Meanwhile, Elaine would put up $50 to win $60 based on the dice outcome.
This is exactly how sports betting works. Each team’s success determines their probability to win, or price of the specific outcome. If there’s a higher probability to win, you’ll get a lower payout. If there’s a lower probability to win, you’ll get a higher payout. Pretty simple, right?
Now that you understand the basics of betting, jump into our next articles to hone in your skills further.