Understanding

American Odds

American Odds Explained

American odds, also known as moneyline odds, are displayed as either positive (+) or negative (-) numbers. They represent how much you need to bet to win $100 (negative odds) or how much you'll win if you bet $100 (positive odds).

Examples:

  • +150: Bet $100 to win $150 (underdog)
  • -200: Bet $200 to win $100 (favorite)
  • +300: Bet $100 to win $300 (big underdog)
  • -110: Bet $110 to win $100 (typical spread bet)

The formula to convert American odds to decimal odds: For positive odds, (odds/100) + 1. For negative odds, (100/|odds|) + 1.

Bet Types

Moneyline, Spread & Totals

Types of Sports Bets

Moneyline Bets

The simplest bet - pick who wins the game outright. No point spreads involved. Higher payouts for underdogs, lower payouts for favorites.

Spread Bets

The favorite must win by more than the spread, while the underdog must lose by less than the spread (or win outright). Example: Patriots -7.5 means they must win by 8+ points.

Total (Over/Under) Bets

Bet on whether the combined score of both teams will be over or under a set number. Example: O/U 47.5 means you bet if total points scored will be 48+ (over) or 47 or less (under).

Mathematics

Edge & Value Calculations

Calculating Your Edge

Edge represents your advantage over the sportsbook. It's calculated by comparing the implied probability of the odds to your estimated true probability of the outcome.

Edge Formula:

Edge = (Your Win Probability × Decimal Odds) - 1

Example:

• Odds: +150 (2.5 decimal odds)

• Your estimated win probability: 50%

• Edge = (0.50 × 2.5) - 1 = 0.25 or 25%

Expected Value (EV):

EV = (Win Probability × Payout) - (Loss Probability × Stake)

Positive EV means the bet is profitable long-term. Our platform calculates this automatically for every bet.

Strategy

Kelly Criterion

Optimal Bet Size Strategy

Optimal Bet Size is calculated using the Kelly Criterion, which helps determine the optimal bet size to maximize long-term growth while minimizing the risk of ruin. It balances potential returns with bankroll preservation.

Kelly Formula:

f* = (bp - q) / b

• f* = fraction of bankroll to bet

• b = decimal odds - 1

• p = probability of winning

• q = probability of losing (1 - p)

Example Calculation:

• Odds: +200 (3.0 decimal odds, so b = 2)

• Your win probability: 40% (p = 0.4)

• Loss probability: 60% (q = 0.6)

• Kelly % = (2 × 0.4 - 0.6) / 2 = 0.1 = 10%

Recommended bet: 10% of bankroll

Many bettors use fractional Kelly (like 25% or 50% of the full Kelly) to reduce variance while still maintaining mathematical edge.

Advanced

Parlay Payouts

Parlay Payout Calculation

Parlays combine multiple bets into one wager. All selections must win for the parlay to pay out. The payout is calculated by multiplying the decimal odds of each leg together.

Parlay Payout Formula:

Total Odds = Leg 1 Odds × Leg 2 Odds × Leg 3 Odds × ...Payout = Stake × Total Odds

Example 3-Leg Parlay:

• Leg 1: Chiefs -110 (1.91 decimal odds)

• Leg 2: Lakers +150 (2.50 decimal odds)

• Leg 3: Over 47.5 -105 (1.95 decimal odds)

• Total Odds: 1.91 × 2.50 × 1.95 = 9.30

• $100 bet pays out: $100 × 9.30 = $930

• Profit: $830

⚠️ Important Note:

While parlays offer higher payouts, they're significantly harder to win. The probability of winning decreases exponentially with each additional leg. Use parlays sparingly and for entertainment value.