![]() The bookmaker margin is a measure of the bookmaker’s profit margin for an event and is a hidden transaction cost for punters. The difference between the published odds (1.91) and the fair odds (2.00) is the bookmaker margin. For example, typical bookmaker odds on Team X winning a coin toss are 1.91. ![]() To fund their operation, the bookmaker adjusts these odds downward to create a profit margin for the market. When using decimal odds, the fair odds for the wager equal the reciprocal of the bookmaker’s estimated probability, in this case 1 / 0.50 = 2.00. For example, in a market on a coin toss winner, the bookmaker will assume the probability of Team X winning is 50%. When a bookmaker sets the odds for a market they first estimate the probability of each possible outcome. You are here: Home > Beginner’s Guide > Betting Agencies > Bookmaker Margins
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