What Does Negative Betting Odds Mean

  
What Does Negative Betting Odds Mean Average ratng: 4,8/5 4354 reviews

If there’s a positive sign next to the odds, that indicates the amount of money you would win if you bet $100. If the odds on a tennis player said +150, that means that for a $100 bet, you would. What do negative betting odds mean? These odds start with a minus symbol. It tells you that your potential profit will be lower than 100% of your stake. If you see a minus sign, it indicates the. Know that moneyline bets only concern what team will win the game. Odds are presented as a positive or negative number next to the team's name. A negative number means the team is favored to win, while a positive number indicates that they are the underdog. Ex: Dallas Cowboys, -135; Seattle Seahawks, +135.

Written by Clay Smith

Idiot’s Guide

That’s right - I will be your guide. The good thing about having an idiot for a guide is that I have to make it simple to understand it myself, which means, hopefully, you will understand it as well.

Probability or Odds

Probability
Probability means the risk of an event happening divided by the total number of people at risk of having that event. I will use the example in a recent JAMA article. In a deck of 52 cards, there are 13 spades. So, the risk (or probability) of drawing a card randomly from the deck and getting spades is 13/52 = 0.25 = 25%. The numerator is the number of spades, and the denominator is the total number of cards.

Odds
Odds seems less intuitive. It is the ratio of the probability a thing will happen over the probability it won’t. In the spades example, the probability of drawing a spade is 0.25. The probability of not drawing a spade is 1 - 0.25. So the odds is 0.25/0.75 or 1:3 (or 0.33 or 1/3 pronounced 1 to 3 odds).

What does negative odds mean in betting

Moving back and forth
To go from odds to probability, simply take the numerator/(denominator + numerator). In the spades example, the odds of 1/3 is converted by taking 1/1+3 = 0.25 - and now we are back to probability. To go from probability to odds, simply take the numerator/(denominator-numerator). In the spades example, given that the probability of drawing a spade is 1/4, take 1/(4-1) = 1:3 odds or odds = 0.33.

Statistical Significance
If an odds ratio (OR) is 1, it means there is no association between the exposure and outcome. So, if the 95% confidence interval for an OR includes 1, it means the results are not statistically significant. Example, exposure to colored vs white Christmas lights was associated with an increase in jocularity score, OR = 1.2 (95%CI 0.98-1.45). Sorry, this is not statistically significant. Let’s just go with white lights…

Use
Either the OR or risk ratio (RR) could be used in many study types. However, only the OR can be used in case-control studies. Because in order to calculate the RR, one must know the risk. Risk is a probability, a proportion of those exposed with an outcome compared to the total population exposed. This is impossible in a case-control study, in which those who already have the outcome are included without knowing the total population exposed.

Risk Ratio

Does

RR is a very intuitive concept. It is the probability (or risk) of one outcome over the probability (risk) of another. Let’s use a study we covered on JF to discuss this concept. Survival was lower in pediatric patients intubated during arrest compared with those not intubated: 411/1135 (36%) vs 460/1135 (41%). So, the RR is 36.2%/40.5% = 0.89. This means survival was reduced by a factor of 0.89 for pediatric arrest patients who were intubated during arrest vs. those who were not. As an example, if survival was expected to be 40%, then intubating during arrest would reduce it to: 40% x 0.89 = 35.6%.

Let’s do one more example. Supination-flexion (SF) vs hyperpronation (HP) to reduce nursemaid’s elbow was more likely to fail. The risk of failure with SF was 96/351 (27%) vs. 32/350 (9%) with HP. The RR was 3. This has a very intuitive meaning: risk of failure with SF was three times more likely than HP.

Odds Ratio

The OR is a way to present the strength of association between risk factors/exposures and outcomes. If the OR is <1, odds are decreased for an outcome; OR >1 means the odds are increased for a given outcome. Let’s look at the examples again and consider odds.

For pediatric arrest, the risk of survival if intubated during arrest was 411/1135 (36%) vs 460/1135 (41%) if not intubated. Let’s convert to odds and calculate an OR.

  • Intubated: 411/1135-411 = 411/724 = 0.57 odds.

  • Non-intubated: 460/1135-460 = 460/675 = 0.68 odds.

  • So, the OR is 0.57/0.68 = 0.83.

Note, this is very close to the RR (0.89) but is a slight overestimate of the effect on the outcome. This is always the case with the OR compared to the RR - it overestimates the effect.

Take the example of supination-flexion vs hyperpronation for nursemaid’s. The risk of failure for SF was 96/351 vs. 32/350 with HP. Let’s convert this to odds.

  • SF: 96/351-96 = 0.376 odds

  • HP: 32/350-32 = 0.10 odds

  • The OR is 0.376/0.10 = 3.7

Note, the OR overestimates the RR, which was 3. Although one could say the risk of failure using SF is 3 times greater than HP, one could not say, based on the OR, the risk was 3.74 times greater. The OR and RR are not the same. What could be said is that the odds of failure is 3.74 times greater.

Risk Ratio vs Odds Ratio

Whereas RR can be interpreted in a straightforward way, OR can not. A RR of 3 means the risk of an outcome is increased threefold. A RR of 0.5 means the risk is cut in half. But an OR of 3 doesn’t mean the risk is threefold; rather the odds is threefold greater. Interpretation of an OR must be in terms of odds, not probability. Again, the OR will always be an overestimate compared to the RR. However, the RR and OR will be similar for rare outcomes, <10%. But the OR increasingly overestimates RR as outcomes exceed 10%. This is easier to understand with an example.

Pretend a new vape, Vapalicious, is associated with cancer.

  • 80/100 people who use it get cancer.

  • 20/100 who don’t use it get cancer.

  • The risk of getting cancer is 4 times greater in Vapalicious users. RR = 0.8/0.2 = 4

  • Note how distorted the OR becomes in this example. OR = (80/20)/(20/80) = 16

What if Vapalicious rarely caused cancer?

  • 5/1000 get cancer with Vapalicious vs 2.5/1000 for non-users.

  • RR = 2.

  • OR = 2 as well (actually 2.005)

  • With rare outcomes, the RR and OR are very similar.

Why Does This Matter?

This matters because we often equate the OR and RR. Unwary researchers, reviewers, or news media might report a 16-fold increased risk of cancer from Vapalicious. In fact, there was a 4-fold increased risk of cancer from Vapalicous. Not that I plan to use Vapalicious (or any other vape), but a 16-fold vs 4-fold increase is a gross overestimation of the effect.

Negative

What Does the OR Mean?

So, what does an OR mean? Here it is in plain language.

  • An OR of 1.2 means there is a 20% increase in the odds of an outcome with a given exposure.

  • An OR of 2 means there is a 100% increase in the odds of an outcome with a given exposure. Or this could be stated that there is a doubling of the odds of the outcome. Note, this is not the same as saying a doubling of the risk.

  • An OR of 0.2 means there is an 80% decrease in the odds of an outcome with a given exposure.

Summary

  • Odds Ratio is a measure of the strength of association with an exposure and an outcome.

    • OR > 1 means greater odds of association with the exposure and outcome.

    • OR = 1 means there is no association between exposure and outcome.

    • OR < 1 means there is a lower odds of association between the exposure and outcome.

  • If the 95% confidence interval for the OR includes 1, the results are not statistically significant.

  • OR and RR are not the same.

  • OR always overestimate RR, but…

  • OR approximates RR when the outcome is rare but markedly overestimates it as outcome exceeds 10%.

What Do Positive And Negative Betting Odds Mean

References

Betting
  1. The odds ratio by Bland and Altman, of Bland-Altman plot fame

  2. Wikipedia aka source of all statistical knowledge

Betting Odds are simply a measure of probability. They represent the most likely outcome of a particular event.

Probability

Probability is the likelihood of an event happening.

Low Probability means that the event is unlikely to happen, and the betting odds will be higher.

High probability means that the event is likely to happen, and the betting odds will be lower.

Below is how bookmakers display their odds:

Fractional betting odds are the traditional way of showing odds in the UK. They show the total to be paid out for a successful bet in relation to the stake.

Betting £1 at Odds of 5/1 would return £6. You win £5 plus your stake of £1.

Be careful you are looking at the fraction correctly because:-

Betting £1 at Odds of 1/5 would return £1.20. You win 20p plus your stake of £1.

Decimal betting odds are more common in Europe. They show an outcome equivalent to the decimal value of the fractional odds plus one.

5/1 would be Decimal 6.
Betting £1 on Decimal 6 would return £6.

1/5 would be Decimal 1.2.
Betting £1 on Decimal 6 would return £1.20.

American betting Odds are also known as Moneyline or US Odds. The figure quoted will be either positive or negative.

If they are shown with a + sign it means how much you would win on a £100 stake.

If they are shown with a – sign it means how much you would have to stake to win £100.

5/1 (Decimal 6) would be +500.
Betting £1 on US +500 would return £6.

1/5 (Decimal 1.2) would be -500
Betting £1 on Us -500 would return £1.20

2 to 1 odds or 2/1 is a way of displaying the decimal odds 3.

In probablitiy terms, there is 1 in 3 chance of the selection winning.

If you place a bet of £10 on odds of 2/1 and your selection wins, you will win £20 plus your stake of £10 will be returned. So the outcome would be £30.

1 to 2 odds or 1/2 is a way of displaying the decimal odds 1.5.

In probablitiy terms, there is 2 in 3 chance of the selection winning.

If you place a bet of £10 on odds of 1/2 and your selection wins, you will win £5 plus your stake of £10 will be returned. So the outcome would be £15.

5 to 2 odds or 5/2 is a way of displaying the decimal odds 3.5.

In probablitiy terms, there is 28.57% chance of the selection winning.

If you place a bet of £10 on odds of 5/2 and your selection wins, you will win £25 plus your stake of £10 will be returned. So the outcome would be £35.

What Does Negative Odds Mean

2 to 5 odds or 2/5 is a way of displaying the decimal odds 1.5.

In probablitiy terms, there is 71.42 chance of the selection winning.

If you place a bet of £10 on odds of 2/5 and your selection wins, you will win £4 plus your stake of £10 will be returned. So the outcome would be £14.

Odds

We find that changing the odds format to decimal really helps new bettors understanding odds. Fractions can get confusing especially during a time sensitive time like before a race.

We have put together a great odds conversion table to help you change fractions to decimals.

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