Betting: If someone says they'll give me 3:1 odds on the occurrence of an event, what does it mean?

 

Betting: If someone says they'll give me 3:1 odds on the occurrence of an event, what does it mean?

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In betting Odds mean the probability for an event to happen,where you will be able to predict the outcome of an event. It will tell how likely will an event occur and what your potential winnings will be. Knowing this would allow the punter to predict the expected return on their stake. There are 3 main types of betting odds.

1. fractional odds
2. decimal odds
3. American odds

These 3 types of odds represent the same thing meaning the payout will be the same in each type of odds. 
Fractional odds are the ratio of profit to the stake. For example three to one (3/1) would mean you will win 3$ for every 1$ you wage in addition to the dollar you would win back (stake), meaning you will win altogether your payout will be 4$. Decimal odds are amount of profit for every 1$ wagered. Here the number represents the total payout rather than the profit. If the decimal odd is 3, it would mean that if one bets 1$ He will make a payout of 4$. Decimal odds are more commonly used in United Kingdom. American odds mean the amount one needs to wager to win 100$, or the amount one would win for every 100$ staked. A positive value indicates amount won for every 100$ staked. A negative value would indicate amount you need to win 100$. These odds are commonly used in the United States as the name itself suggests.

It is important to differentiate these 3 types of odds as the world is currently moving towards decimal odds from the more traditional fractional odds.