If you are into sports betting, you should have come across the term odds because all the bets you place are based on betting odds – betting odds display the probability of an outcome and they are usually represented in a fractional or decimal form most of the time. The fraction or decimal that you see displayed when you are placing bets tells a story of how much one could potentially win if that particular outcome were to happen and also who the favourites and underdogs are. It is extremely important for one to understand how American odds work and it would be disastrous to start placing bets without having a good understanding of the main types of betting odds in order for you to be able to read and interpret the odds the format they come in. There are three main types of betting odds in the betting industry namely:

- Fractional Odds
- Decimal Odds
- American Odds

The most important thing to note is that the the types of odds listed above are just different ways of presenting the same thing but the payout remains the same.

American odds, also known as Moneyline odds, are very popular in the United States. The odds for favorites are accompanied by a minus (-) sign, indicating the amount you need to stake to win $100. In terms of the favorites, the higher the absolute value of the number, the better the chance the bet will win, for example a -200 favorite has a better chance to win than a -120 favorite. The odds for the underdogs are accompanied by a positive (+) sign, indicating the amount won for every $100 staked, in terms of the underdogs, the higher the number, the larger the underdog. So a +100 underdog has a better chance to win than a +300 underdog.