Negative odds

Negative odds are one of two types of odds used in American odds. Negative odds represent the favourite in a bet, meaning this outcome is considered more likely to happen than not.

Negative odds represent how much money must be bet to see returns of $100.

For example, if odds of -300 were quoted, then a $300 bet would see returns of $100 and a total payout of $400.

The opposite of negative odds are positive odds, which represent the underdog in a bet, meaning this outcome is considered less likely to happen than not. The positive odds indicate how much money would be won from a $100 bet.

Calculating returns with negative odds

It is relatively straight forward to calculate returns using negative odds if you are placing a $100 bet - but often this is not the exact figure of our stake. To calculate returns on a negative odds bet, the following formula is used:

Stake * ((100 / (odds * - 1))

For example

  • Liverpool vs Everton - Liverpool to win at odds of -400 with a $10 stake

10* ((100 / (-400 * -1)) = 2.5

Therefore returns would be $2.50.

Converting negative odds into decimal odds

The formula for converting negative odds into decimal odds is as follows:

100 / Odds + 1

For example

  • Inter Milan vs AC Milan - Inter to win at odds of -250

100 / 250 + 1 = 1.40

Converting negative odds into fractional odds

In order to convert negative odds into fractional odds, the odds are arranged in a certain way and then reduced to their simplest form. To convert negative odds into fractional odds, the odds are arranged as follows:

100/odds

And then reduced into simplest form.

For example

  • Atletico Madrid vs Valencia - Atletico Madrid to win at odds of -250

100/250 reduces down to 2/5

Converting negative odds into implied probability

Implied probability is the conversion of odds into a percentage to show the expected probability of an outcome.

The formula for converting negative odds into implied probability is as follows:

Negative odds / (odds + 100) * 100 = implied probability

For example

  • Manchester United vs Chelsea - Manchester United to win at odds of -200

200 / (200 + 100) * 100 = 66.7%

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