How to calculate the margin in sports betting?

In today’s paribet article we will find out what bookmaker’s margin is and how it affects the odds in bets. We will also talk about how to calculate the margin and its level in different bookmakers.

Margin in sports betting

Almost all bookmakers’ offices in one voice claim that they offer the most favorable quotes on events. But how does a bettor know the truth? Today we will try to tell you exactly how you should use the information about published odds to find the best offer on the market. You should not make a bet without knowing its value.

The essence of the work of bookmakers is that they take bets on a particular market, adjust the quotes for the events under themselves, achieving the necessary balance, and make a profit in the form of their own margin. The office will remain in the black, regardless of how this or that match will end. Margin is the difference in the odds, which is laid down by the bookmaker before they are published. In the process of line alignment the office already takes into account its own benefit and adjusts the values always in the direction necessary for itself. This is its commission for allowing players to bet.

The effect of margin on odds in betting

For a vivid example of explaining margin, let’s use the simplest flip of a coin. Suppose you and a friend each bet 10 euros and have an opportunity to win the same amount on top. Let’s assume that you win on heads and you lose on tails. Under such conditions, neither of you has an advantage, given that the probability of one or the other side of the coin falling out is 50% and expressed in odds as 2.00 (or +100 for American odds).

Bookmakers call such cases 100% market or betting without advantage, where the level of margin is not taken into account. It turns out that the 100% market is a market with zero margin. However, if there is an intermediary between you, who wants to organize your dispute and monitor the fair execution of all conditions with the subsequent receipt of their own share of the winnings — the percentage of the market will increase and exceed 100%. Anything above 100% is the bookmaker’s margin and it is you who pays the difference for the services provided by the office.

This, by and large, and is the basic principle of all bookmakers’ offices without exception. It is important for the player to know what is the exact level of margin bookmaker lays, because it affects the value of quotes and the value of the potential winnings. To calculate the bookmaker’s profits, there are special tools called betting calculators. At Parimatch , in addition to the most favorable odds and minimum margin level, there is an opportunity to check it, using such a service for free.

Calculation of the margin level in determining the value of odds

The main condition for calculating the margin on any event is to consider the quotes for all possible outcomes. Inexperienced bettors often wonder why they should consider all possible odds if they only bet on one outcome. However, the value of the entire bet directly depends on the market as a whole, and it is determined by taking into account the rates for all possible outcomes. The margin increase decreases the player’s potential winnings and vice versa. Therefore, it is important for all participants in the gaming community to have an idea of the correct calculation of the bookie’s profits, so that you can always look for the best options for your betting.

Over a long distance, this knowledge becomes even more important. Professionals betors always have the ability to assess how a bookmaker’s margin level will affect their profitability in the long run. Let’s look at a two-way market in a tennis match as an example of calculating margin:

(1 / variable A decimal odds) * 100 + (1 / variable B decimal odds) * 100

In practice it would look like this. Let’s imagine a tennis match between Roger Federer and Rafael Nadal. The difference in the odds would be calculated as follows:

Rafael Nadal 1.926.

Roger Federer 2.020

(1 / 1.926) * 100 + (1 / 2.02) * 100 = 101.43% market

So, the difference for this match will be only 1.43%, which is considered a very decent figure for a betting player. Approximately the same scheme can be used to calculate the margin level for three-sided markets, which is applicable for soccer matches.

It becomes obvious that the level of margin has a direct and very strong impact on the final quotes and on the potential profit of the player. Finding the best betting website in this case is probably the main task for a member of the gaming community. This is what the Paribet website is for, to help you make the right choice. 

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