How do you explain Horse Racing odds?

Decimal Odds (Easiest)

Rather than using percentages, bookmakers use odds. Decimal odds are commonly used in Europe and also known as European odds. To convert chances into decimal odds just take the chance as a % and divide into 100. 100/%Chance = odds So if you think something has a 20% chance of winning then 100/20 = 5 Say you wish to place a bet on an event which has decimal odds of 5. If you win, for every one pound you stake you will receive 5 pounds back. Stake £10 and you will receive back £50. You can see that your stake is included in the odds. European odds multiplied by your stake equals the payout. The odds show how many units the bookmaker pays out per unit staked.

Fractional Odds

The more traditional fractional odds are often used in the UK. Using the 20% chance example again, the factional odds are 4/1. Fractional odds are saying that for every 1 time you win then 4 times you will lose. Which is the same as saying you have a 20% chance of winning and an 80% chance of losing. Say you wish to place a bet on an event which has odds of 4/1. If you win, for every pound you stake you will win £4 and you will receive your one pound stake back, giving you a total return of 5. If you place a bet of £10 at 4/1, then you will win £40 and have your £10 stake returned, giving a total return of £50. UK odds multiplied with your stake equals the winnings. The odds show how many units you win in terms of winning per unit staked.