Real-Odds
What are the real odds, Olso called true odds ?
The real odds are the mathematical odds without the bookmakers profit !
In a soccer match, for example, the real
probabilities of each of the 3 possible outcomes (home-win, draw and
away-win), based on their relative abilities may be 50%, 30% and 20%.
The total of these three percentages is 100%, thus representing a fair
'book'.
The real 1X2 odds of winning for each of the three possible outcomes
are 2.00 , 3.33 and 5.00 respectively.
In order to generate a profit on
the wagers accepted by the bookmaker he may decide to increase the values
to 53%, 33% and 23% for the three , representing 1X2 odds against of
1.89 - 3.03 and 4.34
These values now total 109%, meaning that the book has an
overround of 9% (109 − 100).
This value of 9 represents the amount of profit for the bookmaker if
he accepts bets in the correct proportions on each of the 3 possible
outcomes.
The art of bookmaking is that he will take in, for example,
$109 in wagers and only pay $100 back (including stakes) no matter which
team wins or a draw.
This is a low overround for 1X2 betting.
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