What odds really represent

Published 2024-11-15 ยท Updated 2024-11-15

Odds are a price, not a promise. They reflect implied probability plus margin, and they shift as information, liquidity, and risk tolerance change.

Understanding odds starts with the conversion to probability. That conversion reveals how much margin is embedded and why the price is a market signal rather than a prediction.

This guide outlines the relationship between quoted odds, implied probability, and the operator margin so readers can interpret the numbers with context.