With this article, we’ll show you the importance of odds equivalencies in order to maximize your betting exchange on Betfair.
Knowing equivalencies has all its importance, especially when you are trading on small variations, and to a lesser extent, when you place uniquely single bets, although it will obviously still be more interesting to bet on the highest odds.
This allows you to determine if it will be more interesting to back a selection or to lay the opposite selection, to get the highest possible odds and therefore have a better long-term return.
Let’s take an example of a tennis match in-play with the following odds:
Djokovic: 1.05 / 1.06
Cilic: 18 / 18.5
Most of the gamblers wanting to bet for Djokovic will rush on the back of @1.05 while the lay of Cilic @18.5 is much more interesting. The lay of Cilic @18.5 is equivalent to a @1.057 back (see formula below) and therefore a higher odds than the @1.05 available in back on Djokovic selection.
Suppose that Djokovic’s selection odds drop from a point, the gambler having LAY Cilic @18.5 will already have the opportunity to close its trade with a profit on Djokovic @1.05, while those who had back @1.05 will get a P/L of 0.
Some will say that with such high odds, it will be difficult to quickly determine how much to bet. But we remind you that you can use our liability button to set in one click your maximum risk during a lay.
This is also valid for «Offplay» trading because the trades are usually on small variations.
How to calculate an equivalent odds ?
Cote équivalente = Cote / ( cote-1)
If we take our example of @1.05 odds is equivalent to 21 (1.05 / (1.05 – 1)) or 18.5 equals 1.057 (18.5 / (18.5 – 1))
Odds of @2 equals @2
Odds of @1.5 equals @3
Odds of @1.25 equals @5
Odds of @1.10 equals @11
Odds of @1.05 equals @21
Odds of @1.01 equals @101