Negative Odds Meaning – What They Are and How They Work
Negative odds indicate the favorite in a match or event. There is nothing negative about them and our betting guide explains how they work. They are linked to the American odds format and represent the amount you must wager to win $100.
Negative betting odds will deliver more frequent winnings, although the profits are smaller. This is one of the betting terms that beginners and risk-averse players should learn right away. They work well for straight betting but are more effective in accumulators and betting systems.
- 1What do negative odds mean in betting?
- 2Understanding negative odds meaning in Moneyline betting
- 3How to calculate the implied probability of negative odds
- 4The -110 line in sports betting and its odds
- 5The pros and cons of betting on negative odds
- 6Are negative odds better than the positive ones?
- 7Frequently Asked Questions about negative odds meaning
Best online bookmakers for betting on negative odds in 21 November 2024
What do negative odds mean in betting?
A negative number in odds usually represents the amount of money you need to stake to win $100. In American sports betting, negative betting odds are commonly used to represent the favorite team. So, what do negative odds mean? They specify the risk to win $100 or other currency. Remember, a minus sign is usually found in American moneyline odds and is reserved for the favorite on a betting line. Therefore, this type of odds denotes the favored team.
- For instance, -220 odds mean that you need a $220 bet to get a profit of $100.
Moneyline odds also come with a positive sign at live bookmakers; thus, positive Moneyline odds. These odds are reserved for the underdog, i.e., a team not favored to win, and they represent the money you could win if you staked $100. Unlike the negative odds, you can make more money with the positive odds, but your chances of winning a bet are lower.
- For example, a $100 bet on +220 odds returns a profit of $220.
Understanding negative odds meaning in Moneyline betting
Identifying a good Moneyline bet at any sports betting site will help you have a long winning streak. To identify a good money line bet, it is essential to compare odds across different formats to find the best value. For starters, it is essential to note that the best value in Moneyline bets is achieved when you bet on the underdogs. So, recognizing the right opportunity can help you win big.
Here are a few opportunities you can exploit to boost your chances of winning when wagering negative odds. Also, do not forget about offers or other promotions.
Select Teams Carefully
Don't Neglect Favorites
Finding Undervalued Moneyline Bets
Consider Specific Match Ups
How to calculate the implied probability of negative odds
Implied probability represents the chances of an outcome happening, and you calculate this probability by dividing one by the given odds and converting it to percentages. Here is the formula for implied probability:
Unlike decimal odds, which are common in European sports betting, American odds require a different calculation method. Here is how you can calculate implied probability for American Odds:
Positive American Odds:
Negative American Odds:
Implied probability is critical in assessing attractive opportunities in bet. You can determine whether the chance is higher than the implied probability reflected in the odds.
The -110 line in sports betting and its odds
As stated earlier, when you wager on a -110 point spread line, you will be staking $110 to win $100. The oddsmakers want equal action on the same sides. If they can do that, they reduce the risk of losses and guarantee profits. The value a sportsbook earns from -110 is called vigorish or juice. So, why are negative odds better? They create a balanced betting environment for the sportsbook, which can ultimately benefit savvy bettors. For more insights, you can check our article on how bookies set odds.
The pros and cons of betting on negative odds
PROS
- Suitable for calculating payouts quickly, particularly for a flat $100 wager
- An excellent option for single-game betting and parlay betting
- Easier to place bets because you do not have to worry about winning the game by a certain margin of victory
- Less variance
CONS
- You will rely on fractional odds to calculate an implied winning probability
- Tough to win consistently
Are negative odds better than the positive ones?
Negative odds indicate a favored outcome in a betting scenario, requiring a larger stake to win a smaller profit. While these odds offer higher chances of success compared to positive odds, the payouts are typically lower. Negative odds work well for risk-averse bettors or those focusing on consistency, but it’s important to evaluate each bet carefully to find value, especially with favorites that may be undervalued. Understanding matchups, team performance, and the market can help increase the chances of success when betting on negative odds.
Frequently Asked Questions about negative odds meaning
Negative odds do not impact your chances of winning in American betting. The minus sign shows the amount of money to bet for every $100 you want to win. The nature of the game and team strengths impact your odds of winning.
Negative odds mean that the outcome is more likely to happen and placing a bet on that outcome pays less than the wagered amount. The odds reflect the likelihood of the outcome, but relying solely on negative odds may not give you the best payouts. So, while there is a chance you will win, the amount is minimal.
Yes, you can make money with negative odds but to maximize your profits it is essential to compare odds across different formats. However, the profit is much less than you would make with positive odds.
When you make a bet with -200 odds it means that you need to pay $200 on the bet to get a profit of $100. These odds indicate the favorite, where the bet has a higher probability of winning, but the payout is smaller compared to the stake. Negative odds show how much you need to bet to win a standard amount.
Sports bettors need to understand that a "minus" (-) before the number indicates the team is a favorite and you must wager an amount indicated by the number to win $100. A "plus" (+) before the number indicates the team is an underdog, which means you will receive the amount equivalent to the odd value of a successful $100 wager.
Negative odds are better for safer bets with lower payouts, while positive odds offer higher rewards with more risk. The choice depends on whether you prioritize consistency or potential profit.