There is an important factor which should not be underestimated at any cost when betting on sports events. This is the so called margin by which the bookmakers actually make their money. The term Margin describes the increase of the percentage probability of an event to happen, which when it is properly distributed helps the bookmaker to win in all cases.
One of the most common odds that you can see is 1.91 for A to happen and 1.91 for B to happen. It is clear that if you bet 100 euros on every of the two possible outcomes you would win 191 euros, but you would have wagered 200 euros. These 9 euros pure profit for the bookmaker comes from the margin.
Why is it important to know what kind of margin the bookmaker offers us?
First of all to choose the right bookmaker. There is no logic to choose a bookmaker with a higher margin. It is better to gamble where your chances of success are higher.
Apart from this, the knowledge of the exact margin will help us to determine more accurately the actual rates given by the odds and thus to understand better whether we have a chance to succeed in the long run or not.
How to calculate the margin given by the bookmaker? This is very simple to do. You have to use this formula ((1-Odds1) + (1-Odds2)) – 100 = Margin
It is important to know that the bookmakers may vary in the used margin and may provide one margin for one of the outcomes and another for the other one. This could distort our assessments, but on the other hand it happens rarely enough to be given any importance to the fact.
As a conclusion, when you bet on a match always carefully consider your chances with the added margin. A possible few percent difference in your system can lead to unpleasant losses in the long term.