There are two different types of betting odds, and both of them are essentially just different ways to present the same information.

Fractional Odds

Fractional Odds are very popular with the bookmakers and punters in the UK, particularly in the horse racing industry. You will see a number represented as a fraction, for example: 7/1. The left number is the number of bets you will get if you win, and the right one denotes the number of bets you must place.

For example: a bet of £5 to win £5 will simply be represented as 1/1 that will earn you a profit of £5. If you have an opportunity to win 5 times what you originally placed as a bet, it will be denoted as a 5/1 fractional odd.

You will have to calculate the odds if you want to place bets. Sometimes the numbers can be confusing like 14/4 and 12/6.

Decimal Odds

Not many people are a fan of math, and as such, punters don’t really like calculating fractions when placing bets. It’s too much of a headache. This is why decimal odds was devised in the first place. It has been gaining in popularity since then.

Some of the largest betting markets in the world follow the decimal odds system, and it is even more common on betting exchanges. Taking the previous example: an odd of 5/1 will be simply represented as 6.0. This is because the stake is also taken into consideration when representing decimal odds.

If you want to place a bet of £1 at a decimal odd of 5.0, you will win £4 if you win the bet. As discussed earlier, the stake is also added while calculating the decimal odds.

Once you get your head around this concept, the rest is pretty straight forward.