Every bookie has to calculate horse racing odds for race events. It is not really easy to calculate the odds. It is a time-consuming process. Apart from that, they have invested money to get all the data about odds.
Because of this reason, many bookies avoid the whole process. Instead, they borrow the odds from other bookies.
Borrowing Odds:
When a bookie copies the same odds from other bookies, it is known as borrowing odds. Mostly the big bookies conduct the research and calculate the odds. Once they publish the odds, other bookies use the odds to come up their own odds.
This whole process is known as borrowing odds. However, publishing the odds first can be quite risky as the odds become speculative the price changes. In such a case, if punters put more money on a horse, it will result in severe losses.
To avoid this, the bookie larger over rounds in the price. It helps them to avoid heavy losses. Betting exchanges also use the odds for reference.
After the odds reach the exchanges, punters create havoc. They fight to get higher odds in the market. In the whole process, the odds naturally stabilize. In exchanges, the odds become accurate. There is no over round required.
So other bookies take advantage of this fact and use the odds to calculate the price. It is beneficial for them.
How Horse Racing Odds Work?
In traditional horse race betting each punter is given the slip. On the slip, there is an option called “each-way”. If you want you can check into this box.
When you do so, the stake you put will become double. Out of all the stake money, 50% will go to the selection of your bet.
Most of the time, the odds will be nearly ¼ of the winning price. This is the most common cause. However, there can be changes if the size of the field is different.
The odds can be ½ or 1/5 of the winning amount. If this happens, you will have higher chances of winning more money.
Horse racing odds work in a direct form. If the odds are high, you will make a high profit. But is the odds are low; you will make less profit. Odds typically show the odds of winning the race.
As a favoured horse has more chances of winning the game, the odds are low. Because most of the punters wager money on a favoured horse, the low odds force them to either put more money at stake or go home with less profit.
However, if you are professional, you will know how to take advantage of higher odds. If the horse has low chances of winning, the odds will be high. It shows that even if you put less money on stake, you will make a good profit if the horse wins. It helps the bookies to lure people in. As the chances of winning are less, the lost stake goes to the bookies.
This is all you need to know about borrowing odds and working of odds in horse race betting.