Being able to understand how bookmakers are making money helps you recognize when they’re actually offering a value with good quality or otherwise, which would not let you make any real money at all.
Toss Coin
The simple and straightforward toss coin is a nice way of explaining the margins prepared by bookmaker betting. The odds of landing on either part of the coin are automatically 50 percent. Meaning to say, the odds are priced at 2/2 on both ends. Basically, the same is applied in casinos like Mega888. Depending on the game that you play, there will always be odds on your winning rate.
From the given example, bookmakers will be offering tails or heads at odds that are below 2. Therefore, you would need to bet more than $100 to win $100. In the event that the odds provided were 1.91, a 4.7 percent margin, average bettors will be losing 5p for each dollar spent in the long run.
Why should You Take Time to Calculate Margins
Due to the reason that bookmakers are not openly displaying the market overround in the similar manner exchange does, it is pretty useful if you can learn how to calculate betting margins. As soon as you have the ability to calculate the margins, you’ll be able to identify and at the same time, understand variation across bookmakers and to how this can significantly affect your possible returns.
Betting value is relatable to the entire market. With this said, you have to take into consideration the odds for all of the possible outcomes.
Why Exchanges are Offering Better Value?
Exchanges deliver the true sense of how much your bet is worth. The question is, how? On betting exchange, the punters are betting against other users, which eliminates the need for having a bookmaker as a middleman. Like with every other industry, sports betting market is powered by supply and demand and typically leads to greater odds than those provided by bookmakers.
Rather than bookmaker margin, exchanges are charging commissions on every winning bet. If you will be diligent with your research, you are going to find exchanges that are offering low commission percentage towards your net profit of 2 to 5 percent. This automatically gives you greater value than what you can get from bookmakers. Because if you’ll compare, bookmaker margins are at 6 percent, which is obviously a big gap.