# What are betting odds?

Understanding what odds are, how they work and what they represent is the first step in developing a basic understanding of betting.

Betting odds are simply a representation of the underlying chance an event will occur – the probability. In any event, every outcome has a chance of taking place. Odds are simply an interpretation of those chances.

## What is probability?

To better understand what betting odds are, we must first understand probability. Probability is the likelihood of an event happening and is normally expressed as a percentage. Calculating an odd is assessing the probability of an event happening – from 0% (impossible) to 100% (certain). The possibility of all other potential outcomes falls in between. Bookmakers and exchanges then measure that probability and translate it into odds.

## How to calculate betting odds

Betting odds are another way to express probability. Now you’ve calculated the probability of an event, you can translate this into decimal betting odds with this equation:

100% / all possible outcomes

Understanding how to calculate probability of an event in a soccer match, is vital to identifying value bets.