Over the years, betting exchange commission have taken different names, such as The Take, The Cut, The Margin, and many more. However, they all imply the same thing: the percentage of action every bookmaker cuts from the odds to make their business worthwhile and profitable.
Normally, bookmakers charge varying betting exchange commissions based on the events and outcome of a particular game or match that takes place in an online casino in Malaysia. The bookmakers can sometimes offer special “reduced juice” for a particular tournament or league. This offers the customers higher odds and better returns than those offered by competitive online betting in Singapore.
Nevertheless, it is important to understand how much of a betting margin a bookmaker can make from a particular tournament or league. Moreover, beginners and first-timers should learn how to calculate their betting exchange commissions and Malaysia betting odds to prevent themselves from suffering heavy losses.
Keeping this in mind, we at ASAA88 have put together this guide to help you calculate betters odds with betting exchange commission.
Table Of Contents
- 1 What Is Betting Exchange Commission?
- 2 How To Read Betting Odds?
- 3 What Is The Importance Of Online Singapore Betting Odds?
- 4 Why Do You Need To Calculate Betting Exchange Commission Into Odds?
- 5 How To Calculate Betting Odds?
- 6 Calculating The Betting Margin On An Exchange To Compare With Bookmakers
- 7 Conclusion
- 8 Frequently Asked Questions About Betting Exchange Commission
What Is Betting Exchange Commission?
In return for all services the facility provides to the users for placing a bet, the betting exchange provider deducts a commission from the profit earned on the market. However, this doesn’t apply to winners since they have to pay a percentage of their profits.
If you want to observe what commission rates are offered by the market, we recommend checking the rules laid down by them. Moreover, all net profits are the payout you have earned from the winning section minus:
- All losses from lay bets and losing back.
- Relevant stake money earned from back bets
For instance, you back a section for a game with a odds of 7.0 and a stake of SGD 20 (here SGD is Singapore Dollars). now the commission rate defined by the market is 5%. If you win the selection, you must pay a commission of SGD 6. Here’s how the calculation works:
SGD 120 (Profit received from the bet) X 5%. However, if your section bet losses, you don’t need to provide any commissions.
Click to learn more about How To Read Betting Patterns In Online Poker.
How To Read Betting Odds?
When it comes to newcomers, there are several ways of reading betting odds for commission exchange. For instance, understanding the behavior of the sportsbook can help you determine the betting odds for a particular match. Similarly, you can use betting exchange formulas to calculate and derive the odds.
However, calculating odds can be a bit tricky. That’s why most online casinos in Malaysia provide online services such as betting odds converter and betting odd calculator to simplify the calculation process. But you will need to pay a small subscription fee if you want to utilise all the services of the tools provided by the platform.
What Is The Importance Of Online Singapore Betting Odds?
Regarding betting exchange commissions, it is very important to understand the payout you can receive from a bet. In general, the odds that the sportsbook offers are directly connected to the implied probability of the outcome’s occurrence.
If you notice a bet where the implied probability is less than the true probability, then you can consider that as a good bet.
Why Do You Need To Calculate Betting Exchange Commission Into Odds?
Normally, most people prefer to build a betting margin which helps them to calculate the odds. However, this method is mostly followed by bookmakers, and it can vary from one bookmaker to another. As such, it is more effective to calculate the odds from the betting exchange commission charged by the bookmakers.
Let us first look at how to calculate betting exchange commissions before we learn how to determine the odds.
Tips To Calculate Betting Exchange Commission
When it comes to calculating betting exchange commission, the following formula is used by everyone:
Commission Charged= [(Odds offered*Stakes)-Stake] * Commission Rate.
To understand this formula better, let us take an example:
Let’s assume that an Asian Handicap market has offered you a betting odd of 1.95, which is higher than most bookmakers, which is 1.91. At a glance, the odds offered by the Asian Handicap market might seem to provide better value. However, let’s not just rely on that intuition.
The commission rate of the Asian Handicap market in Malaysia is 5%, and you have chosen a stake of MYR 100 (here MYR is Malaysia Ringgit). Let’s see if it is profitable.
Commission Charged = [( MYR 100*1.95)- MYR 100]*5%
Commission Charged = MYR 4.75.
Based on our example, you will be changed to a betting exchange commission of MYR 4.75. Thus your overall profit will be MYR 90.25.
How To Calculate Betting Odds?
Generally, most betting exchanges don’t provide betting margins. As such, it is very important to calculate the commissions into odds. To achieve this, you can use the simple equation which is given below:
Exchange odds with commission factored = 1+[(1-Commission/100))*(Odds-1)]
Let us use an example to see how this formula converts betting exchange commission into odds:
For example, we are placing an SGD 100 bet on QPR, beating Leeds Unites while charging a 2% commission. Normally, you can expect the bet to give you a return of SGD 425. However, this doesn’t count the 2% commission. If you want to calculate the true odds along with the commission, let us take a look at the rough work:
Odds With 2% Commission Applied = 1+[(1-(2/100))*(4.25-1)]= 4.19
According to these calculations, the odds with a 2% is 4.19 instead of 4.25. As such, the return from the SGD 100 bet is SGD 419, which also includes the stakes.
Types Of Betting Odds
Now that we have learned how to calculate betting odds let us take a look at the different betting odds offered by in-commission betting exchanges:
1. American Odds
Unlike most betting odds that are straightforward and simple, Amercian odds are a bit confusing and complex to understand. Most Amercian odds are based around $100. However, you can never determine how it relates to $100 since the factors keep changing based on whether the bet is favored or not. Favored bets usually begin with a negative number, and none favored bets start with positive ones.
2. Fractional Odds
As the name suggests, these betting odds are usually displayed as decimals, such as 3-1 or 8-2. If you multiply the betting amount by the faction, it will reveal the profit for that particular bet. For example, if you are betting MYR 10 and have a 3-1 fractional betting odd, you will receive a profit of MYR 30 along with the MYR 10 you have betted upon.
3. Decimal Bets
In the case of decimal odds, they are represented as one number. This is the money a winning bet would receive for an SGD 1 bet. Therefore, if you have an odd listed as 6, the winning bet will earn a profit of SGD 5 and the original bet amount of SGD 1. Any amount between 1 and 2 is referred to as a favorite bet, and 2 is taken as an even money bet.
Calculating The Betting Margin On An Exchange To Compare With Bookmakers
Now that we have learned how to calculate betting exchange odds, we can use the given information to compare the margins set by the bookmakers. We use the betting exchange odds to calculate the true market margin in online betting in Singapore.
Let us take a 1X2 game between QPR and Leeds and apply the simple formula given below:
(1/Home Odds)*100+(1/Always odds)*100+(1/Draw Odds)*100= Margin
In this case, the over-round on the S market with a 2% commission would be:
(1/2.02)*100+(1/4.19)*100+(1/3.50)*100= 101.94%
Based on this information, if you had to place a bet with the exchange charging a commission of 5%, the margin would be 103.94% or 2% greater than the S market. Understanding the betting margins and how to find them using formulas is fundamental knowledge that all bettors must possess. This helps them to calculate the best betting odds since higher margins offer bad odds.
Conclusion
As a bettor, you must always develop the ability to calculate betting exchange commissions into the best online betting odds since it ensures you a better chance of earning more money from a bet in an online Singapore casino.
However, commission structures and betting margins usually vary between bookmakers. That’s why it is very important that you spend some time to know your bookmaker and the rules and regulations they usually offer for a particular tournament or league.
Once you have better understood the bookmaker, you can easily calculate the odds for the betting exchange commission and increase your chance of receiving big prize money. At ASAA88, our bookmakers follow a standard rule and regulation for almost all the games and tournaments. As such, you can look at a few of the games and tournaments we offer and study the bookmakers on our site.
This can help you significantly improve your ability to calculate odds from betting exchange commissions. We hope you have a good time while you check out the games at our site.
Frequently Asked Questions About Betting Exchange Commission
In return for all services the facility provides to the users for placing a bet, the betting exchange provider deducts a commission from the profit earned on the market. However, this doesn’t apply to winners since they have to pay a percentage of their profits.
If you want to observe what commission rates are offered by the market, we recommend checking the rules laid down by them. Normally, net profits are used to calculate the commissions deducted from the profit. Moreover, all net profits are the payout you have earned from the winning section minus:
All losses from lay bets and losing back.
Relevant stake money earned from back bets
For instance, you back a section for a game with a odds of 7.0 and a stake of MYR 20. now the commission rate defined by the market is 5%. If you win the selection, you must pay a commission of MYR 6. Here’s how the calculation works:
MYR 120 (Profit received from the bet) X 5%. However, if your section bet losses, you don’t need to provide any commissions.
Whenever you lay a particular section, you are placing a bet on an outcome that hasn’t or will not occur. For instance, most professionals prefer to offer a lay bet since they find it easier to pick a horse or a team that will not win rather than to choose a winning horse or team.
The main aim of the bettors is to win a stake from the backer in return for the offering that the backer can potentially return. However, if the outcome of the lay bet doesn’t occur, then the bettor receives the backer’s stake.
Suppose the outcome occurs, then the bettor will need to pay the backer the stake multiplied by the odds. This punter must also back your selection at the desired odds and price.
Decimal format odds differ from frictional format online Malaysia betting odds, which are mostly quoted in the UK. A decimal odd generally represents the total payout instead of just quoting the profit. Moreover, a decimal odd should always be greater than one since it represents the stake.
For example, a decimal odds of 4.0 is equivalent to the fractional odds of 3/1. When you look closely at both cases, the total return for the winning bet is MYR 40: 4.0 X MYR 10.
Some experts consider decimal odds as a factor that allows them to calculate how many times the stake and payout will be. Suppose the profit is less than the stake; the decimal odds will fall between 1.0 to 2.0.
Exchange betting is person-to-person betting that allows punters to set odds for a bet rather than letting the bookmakers post them. In this betting, the punters either back or lay a bet. After that, another punter needs to accept the proposed bet. The parties mostly involved in the bet are the two punters. Therefore, the bookmaker doesn’t play any major role in this bet.
Apart from that, a betting exchange has the following features:
Allows the bettors to place bets “in-play” on a live event. This allows them to calculate the value of the event as it progresses.
It guarantees you a profit no matter what the event’s outcome. For this, you must trade on the price movement and correctly judge the movements of the event’s odds.
Whenever a bettor backs a selection, they are betting for a particular outcome that will occur in the future. A prime example of this is a horse that will win a race or a football match ending with a possible draw. If these outcomes do occur, then you will earn a profit from them. Thus, it is almost like making a bet with a bookmaker.
If you want this bet to be accepted, you will need ano
