# Odds

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<summary>Definition</summary>

Odds serve a dual purpose by representing both the probability of a specific outcome and the potential payout for a successful bet on that outcome. Generally, higher odds indicate a lower likelihood of occurrence and a greater potential reward. Conversely, lower odds suggest a higher probability of the outcome, resulting in a smaller potential payout. This relationship underscores the principle that higher risk corresponds to higher potential reward.

For example, in a match between a team leading the league and a team at the bottom, the odds would heavily favor the front-runner. Given the high likelihood of the leading team winning, the payout for a successful bet on them would be lower. On the other hand, betting on the underdog involves greater risk, leading to a larger potential payout for a successful bet of the same size compared to a bet on the favorite.

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<summary>Different odds formats</summary>

When dealing with sports predictions, odds can be presented in different formats, with the two most common being European and American (sometimes referred to as 'Burger' odds).

**European Odds:**

* Format: Decimal (e.g., 1.5)
* Always positive numbers
* Payout Calculation: Multiply the odds by the stake (amount of money bet) to determine the potential payout if the bet wins.
  * Example: Bet $100 with odds of 1.5; potential payout = $150 ($100 collateral + $50 profit)

**American Odds:**

* Format: Whole numbers, positive or negative (e.g., -200)
* Negative odds indicate favorites, representing how much needs to be bet to win $100.
* Positive odds represent underdogs, indicating potential winnings on a $100 bet.
  * Example: Bet $100 with odds of -200; potential payout = $150 ($100 collateral + $50 profit)
  * Example: Bet $100 with odds of +200; potential payout = $300 ($100 collateral + $200 profit)

In summary, 1.5 European odds are equivalent to -200 American odds, and 3.0 European odds are equivalent to +200 American odds.

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<summary>Setting preferred odds display in the bot</summary>

Choosing between European and American odds format is a matter of personal preference, and both formats express the same information differently. The potential payout for a bet remains consistent regardless of the chosen format. Smart Bet Bot allows users to select their preferred odds display format easily:

1. Go to the main menu and press the 'Options' button.
2. In the Options menu, select 'Odds Display.'
3. Switch between European and American odds by pressing the 'European <-> American' button. The ✅ indicates the selected format.

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