Golden Exchange Id Calculation of the Betting Market’s Margin

Golden Exchange Id ‘fair odds’ are only available in 100% Markets, as was previously indicated. It’s a lose-lose situation for both the bettor and the bookie. In betting, the bettor has the upper hand if the odds exceed the total probability of all possible outcomes and the market is valued at less than 100%. In most cases, when the market is above 100%, there is less than full value in the market. The bookie is the one with the upper hand.

What Effect Do Bookmaker Margins Have on Your Returns?

Hopefully, we now understand what a bookmaker commission is. Let us now consider the value of shopping around for the best value markets. We’ll accomplish this by comparing various ‘even money’ odds and seeing how a tiny reduction or increase in fee can affect your betting bank. Based on market margins, we bet 1,000 bets at varied ‘even money’ coin toss probabilities.

Impact on Returns and Winning Rates

We can see here that betting on a market with a commission of 2.5% versus 5% leads in a 2.75% higher return with a 55% winning strike rate. And when it comes to the difference between being a successful gambler and a losing bettor, calculating the margin in the markets you select to bet on is critical.

That's a 55% victory rate on 'even money' coin flip odds. Consider the effect of a margin reduction on a 53% winning strike rate. As you can see, the impact is significant. With a 2.5% commission, a 53% striking rate on 1,000 'even money' coin toss bets yields a 3.35% return. However, with a 5% commission, the return is only 0.7%.

Always Use the Best Odds Available

While the conclusion is evident that betting with bookmakers who offer superior value markets is significantly more lucrative, it is something that many inexperienced bettors do not fully get. And now, with internet betting and the ability to pit one bookmaker's odds against another, the chance to minimize our commission is greater than ever, especially with the introduction of betting exchanges.

Consider the following example. For an upcoming Premier League encounter between Manchester United and Arsenal, we have odds from 5 different bookies.

Maximizing Success through Best Odds Selection

Golden Exchange Id can observe that, when comparing bookmakers, Pinnacle Sports has the best odds with a commission of only 2.19%. That is an extremely low commission rate. However, we can optimize it even further by just considering the best chances available for each result, which are marked in red above.

By simply examining the best odds available, our overall commission rate drops from 2.19% when betting only with Pinnacle Sports to 1.01% when considering the best odds available across all bookmakers. Once again, the point should be obvious. It's critical to take the best odds available in order to keep your commission rates as low as possible. So make sure you have a bookmaker portfolio that permits you to take the greatest odds available most of the time.

It may appear to be a small percentage, and odds of 1.90 may appear to be slightly less than odds of 1.95, but in the long term, it makes a significant difference in your overall chances of success as a sports betting.