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For those new to horse racing there is a lot to learn, and there is a whole world of horseracing tips and do’s and don’ts that you need to learn to stay on the road to profit and to enjoy making money betting on horse racing.
One of the key things that you must understand is how any bookmaker creates his or her ‘book’ and how that may effect the way that you approach your betting. The ‘book’ is simply the term used to describe the prices that the bookmakers create on any one horse race or any potential sports activity or betting market that has been created!
So when you watch horse racing on the television and you see the chalk boards that display all of the prices on course for that race http://www.heatprostore.com/kids-dion-waiters-heat-jersey/ , this is the odds representation of a bookmakers book.
To the untrained eye there may seem nothing amiss, however you need to be warned that there is, so consider this one of today’s most valuable horseracing tips! Something that every single person betting on horse racing or any bet for that matter would do well to learn as quickly as possible 鈥?the dreaded overround!
To calculate any horses price back in to a percentage is very easy to do http://www.heatprostore.com/kids-chris-bosh-heat-jersey/ , and goes like this.
100 = The fair percentage of actual 100 % probability
A= Profit ratio of win return
B= Stake ratio required
100 Divided by (A+B) = Multiplied then by B = % Chance
If you do this calculation you will realise that any race or event when betting with the same bookmaker will show an overround figure (greater than 100).
In a four horse race, a bookmaker may choose to price up each horse at odds of 31 (4.0). In this book, were he to take equal amounts of money on each horse http://www.heatprostore.com/kids-alonzo-mourning-heat-jersey/ , he would break even, as each horse would have a 25% chance of winning. In that the five runners have combined implied “probabilities” of winning of exactly 100%, this book has no overround. Long term the bookmaker would not be in profit as there is zero profit built in to this book.
In a four horse race Wayne Ellington Jersey , a bookmaker is more likely to price up each horse at odds of 52 (3.5). In this book, were he to take equal amounts of money on each horse, he would make a profit of 14.3% on turnover.
Therefore to do this all the bookmaker has to do is create their book with prices for all selections that include a built in overround margin. As the money comes in prices are adjusted accordingly to that this overround is protected. There are instances where a really well backed favourite will lose the bookmaker money on one race. However long term Udonis Haslem Jersey , just like casino’s the bookmakers have probability and the odds stacked in their favour!
The one thing to note is that the bookmakers advantage is increased in relation to how many horses or indeed viable selections there are to bet on. This creates a higher overround and in a race like the Grand.