When it comes to online sports betting, most punters don’t the sheer range of betting options available. In Australia, punters can bet on everything from a local cricket games to international elections, from rugby to eSports and just about everything in between. To add to this, there are also a variety of different types of bets that can be placed on each sporting event.
One of the most popular betting types is fixed odds betting. Even if you are not familiar with the term, chances are you have placed a fixed odds bet. In the notes below, we are going to take a brief look at exactly what fixed odds means and how it differs from other betting types.
In order to understand the concept of fixed odds, we need to first look at the definition of odds and how it relates to sports betting. There are two terms that every punter should be familiar with. One is odds, and the other is stake. To put it simply, odds are the probability of an event occurring. The stake is the amount of money you wager on a particular event.
In Australia odds can either be expressed as a decimal (1.5) or as a fraction (2/1). The betting odds can also be expressed in monetary terms. For example, you might see a bet a $2 or $20. These are much easier to understand. In the case of a $2 bet, you would win $2 for every $1 bet. In the case of the $20 bet, you would win $20 for every $1 bet.
With monetary bets, bookmakers set higher odds for teams or events that have a lower chance of winning. Now that we have a basic idea of what the odds mean, we can look at the concept of fixed odds. This simply means that at the time of placing you bet, both you and the bookmaker agree on the odds. Let’s say for example, you place a bet on a particular horse at a rate of $16.
Essentially, this is a longshot which no bookmaker thinks will ever win the race. If, for some unknown reason, two of the favourite pull out of the race, the whole betting dynamic at esports betting sites would change. Suddenly, your horse has a better chance of winning.
At this point; the online bookmakers will change the betting odds and your horse might drop down to odds of $5 or even $3. The good news is that your bet doesn’t change. Since your odds were fixed at the start, your bet will continue to pay out $16 for every $1 you wagered. As you can see there are a number of advantages of fixed odds betting.
With most betting markets, fixed odds betting is the default setting. Punters have a clear understanding of what they will win at the time they place the bet, no matter what happens in the time between the placement of the bet and the actual event. It does have its downsides, in the case of where the bet actually increases and you could have won more, but the majority of bets go the other way.