What is bookmaker margin – general concepts and types

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There is not a single bookmaker that does not use margin. In simple words, this is a guaranteed profit of the bookmaker from each bet made. Beginners may not understand its interpretation, we will try to explain in an accessible way what it is and how bookmakers use it. Margin in French means “advantage, privilege or difference” – the word does not lose its meaning. In betting, this is the difference that guarantees the bookmaker its advantage. Experienced betters try to perceive it as a kind of commission fee – this is a fairly correct view of the margin. The margin is built into the coefficients, its size can and will vary due to many factors affecting it – such as, for example, the significance of an event. Everyone understands that the rates and odds of the World Cup will be very different from the tournament matches in Pakistan.

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Bookmakers do not disclose the size of the margin invested in their quotes. From its size, the size of the coefficient also changes. You should know that the smaller the margin, the higher the odds will be. Often, offices go to a kind of advertising trick, lowering the margin on events that are not very in demand, so to speak. Thus, the bookmaker attracts new customers and the number of bets increases, improving the financial position of the office – that is, they take not by the quality, but by the number of bets made. What is the bookmaker’s margin Let’s try to understand what the margin is on a simple example – one candy and two hands, we are asked to guess which of the two hands hidden behind the back contains the treasured candy. We have only two options: either on the right or on the left. And if we were to bet, then the chances would be 50 to 50, that is, in its pure form, the ratio of equivalent outcomes is calculated by the formula 100:50 = 2, (100 percent divided by 50 percent equals 2), which means the odds are 2.0 in decimal form of the European rate. And at this stage it is clearly seen that the chances of the owner of the candy and the guesser are equal, which, of course, does not suit bookmakers very much. Therefore, the specified coefficient will not be 2.0, but for example 1.95 – which gives the bookmaker – 2.0 minus 1.95 = 5 percent, where 5 is the guaranteed superiority that the office will receive. On the scale at which bookmakers operate, the amounts brought in by margin are very significant. Betters should carefully monitor the size of the margin and take into account the fact that over a long distance of the game, the margin is quite a factor influencing financial profit. Main types of bookmaker margin There are three main types of bookmaker margin values ​​or sizes – fundamental, medium margin and low margin. Russian betting companies mostly prefer to conduct their activities in an average margin format. What it looks like in numbers: Fundamental bookmaker margins are in excess of 5 percent. The average margin values ​​of the bookmaker’s margin vary from 3 to 5 percent. Low-margin bookmaker margins – do not exceed 3 percent. It should be noted that professional betters do not like bookmakers with fundamental margins; either beginners in betting or overly gamblers who prefer accumulators resort to their services more often. There are certain clear signs of a bookmaker with low margins, such companies are distinguished by high maximum bets; painting of the prematch line – that is, the number of events is not large – it means that there are no unnecessary, insignificant events in it; sustainable Live-platform – in which there are no unnecessary changes; normal ratios that do not exceed the average value relative to other companies. By the way, this is what attracts professional betters to the bookmaker. It is logical that those who want to make a bet should choose an office for themselves, whose odds for the desired event will be higher. Recall that the larger the margin, the lower the coefficient itself. And now let’s try to learn how to recognize how high the margin is and how low the bet odds are. The formula for calculating the margin in the coefficient To calculate the result for two options, there is a special method, or more precisely, the formula – (Margin in percent = 1 divided by the coefficient of the first option + 1 divided by the coefficient of the second option minus 1) multiplied by 100. Now for a simple example: there is a duel between fencers Ivanov and Petrov, the rivals are equal in all criteria, which means that the odds for the victory of any of them will be equal, let’s say it is 1.5 – we prescribe the formula (1:1.5 + 1:1.5 – 1) x 100 = 3.33, so the margin for the bet is 3.33 percent – this is the normal average margin. Often these formulas are supplemented with a third result – suppose in football or hockey (or other sports) the Whites can win, or the Reds win, or maybe there will be a draw. A clear example: we take a formula for three possible outcomes – the victory of the Reds with a coefficient of 1.5 in the formula is K1, the victory of the Whites with a coefficient of 5.5 in the formula is K2 and a draw with a coefficient of 4.5 in the formula is Kn. Formula (1: K1 + 1: K2 + 1: Kn – 1) x 100 we substitute the data (1: 1.5 + 1: 5.5 + 1: 4.5 – 1) x 100 \u003d 7.07 percent – this is and there is the amount of margin hidden in the odds for this event. A rather high indicator related to the fundamental values ​​​​of the bookmaker’s margin – those that exceed 5 percent. More complex bets, such as parlays, are more difficult to calculate. The task of finding a bookmaker with modest appetites is simplified due to the existence of special odds aggregators and betting exchanges. They usually do not work for free, but they help betters, especially professional ones. Summing up – the margin for a bookmaker is a common and very profitable solution for running a profitable business, as well as all kinds of bonuses and incentives that attract customers, which are hunted by the so-called bonus hunters. The amount of this “commission” varies depending on various factors. The same bookmaker may have 3.5 or 7 percent “commission” for the same event. If you decide to place a bet, try to find the best bookmaker option for you and approach the issue with a cool head, listening to the advice of experienced and very successful cappers. Try not to succumb to excessive excitement, as the heroes of our article about the most ridiculous bets and bets did. Control not only the quality of the bookmaker’s work, but also yourself – get ready for the first bets, distribute your bank and stay on the winning side.

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