Betting margin
The
definition of bookmaker’s margin is one of the most important in
the bookmaker vocabulary. Frankly speaking we deal with margin every
day. What is margin? It is the difference between a product’s value
and the market value of the same product/good.
The
bookmaker’s margin calculation formula
How to
calculate the bookmaker’s margin? It is not as difficult as it can
seem.
M = (1:K1 +
1:KX + 1:K2) – 1
Labeling:
- M –
bookmaker’s margin
- O1 – odds
for hosts’ win
- OX – odds
for a draw
- O2 – odds
for guests’ win
What is the
bookmaker’s margin?
The
bookmaker’s margin is an instrument in the hands of a bookmaker
which allows him to earn on all placed bets. To be more specific
margin in sports betting is a percentage level of income for a given
bet. Using a literal scheme margin = income in this case for the
bookmaker.
Dependence
on the bookmaker’s margin
Margin
does not have a constant value. A bookmaker decreases/increases
margin depending on the tendency a player chooses. In such a manner
due to such instrument a bookmaker can limit potential losses. Such
situation is reflected in recessions and growths of bookmaker’s
odds.