Margin Betting: Explained and How profits are calculated

0
335
Margin Betting

Margin betting on W88 is a form of betting whereby bookies split the number of possible outcomes by generating a percentage of points. You must choose both the correct winner and the winning amount for the bet to be successful. Profit can be either a narrow point range or it can be a wide range like 1 – 39 points. Learn more about margin bets and profit calculation in the following W88au article.

Explanation of margin bet on W88 online bookie

Margin betting involves choosing a team to win as well as choosing the correct margin. They are sometimes referred to as Win Small bets, as betting sites seek to distinguish one margin bet from another. For example, if the person bets that Team A will win, they must choose the amount they think they will win; Team A gets from 1 – 39 points.

Margin Betting Explained

The example shows the margin bet market for the AFL game between North Melbourne and the GWS Giants. North Melbourne is the favorite to win the game and is listed as a $1.74 head-to-head chance. The bookie broke up the competition using the profits to offer players better odds and a game changer. Now there are five possible outcomes including a draw!

If North Melbourne wins by 1 – 39 points, the bonus will be $2.25 for bets 1 – 39. Margin odds represent much better value than the odds. $1.74 recommended for them to win the match. However, if North Melbourne wins by more than 39 points, the margin bet will fail.

How to calculate betting margins

How to calculate betting margins

Calculating margins on a two-way market

(1/Decimal Odds option A) * 100 + (1/Decimal Odds option B) * 100 = Margin

For example, use Smarkets decimal odds for the 2016 Australian Open final between Novak Djokovic (1.20) and Andy Murray (5.50).

Then, you will have: (1/1.20) * 100 + (1/5.50) * 100 = 101.51%

It means you will receive 1.51%.

1X2 market calculation

(1/Home Odds) *100 + (1/Away Odds) *100 + (1/Draw Odds) *100 = Margin

For our example, we will use Smarkets odds for the 2016 League Cup final between Man City (2.56) and Liverpool (3.20) – draw is 3.30. The calculation for the above profit would be:

(1/2.56) *100 + (1/3.20) *100 + (1/ 3.30) * 100 = 100.61%

How to factor in commission on an exchange

The examples above show how betting returns are calculated. However, the calculation does not include exchange commissions, which can be as high as 5%, unlike the industry-low 2% of Smarkets. To solve this problem, you must first incorporate the commission into the odds. To do this, use the following simple calculation:

1 + ((1 – (Commission / 100)) * (Odds – 1)) = Exchange odds

Other ways to calculate margin betting

The simplest way to explain bookmaker returns is a coin toss. The probability of hitting both sides of the coin toss is 50% which means the odds should be set at 2.0/2.0 for both sides. You bet £100 to win £100, making it a 100% market.

The bookie gives the true probability of an event that is not in the house’s favor, so they price the market 100% higher and create an advantage in their favor. The deviation of the odds given from the ‘real price’ is the bookmaker’s profit.

As for the coin toss, the bookies will offer head or tail odds with odds below 2.0, which means you’ll have to bet more to win £100. If the odds are offered 1 .91 – 4.7% margin – then on average bettors lose 5p per pound spent over time.

It is important for bettors to recognize the difference in margins between bookmakers and exchanges, as this determines the value of their odds and the potential profit for bettors. Unlike exchanges, bookies don’t show their deposit amounts, so you could be on the verge of losing in the long run.

Conclusion

The above explanation of margin betting and profit calculation is very detailed and complete. However, to be able to better understand margin betting on W88, please join betting and apply.

>> Related: What is Parlay betting