This section covers how odds (or prices) work.
There are three types of odds participants can use when trading on the exchange:
Probability This is the default odds format on Aver Exchange. With Probability odds, a contract trades between 0 and 1 where a unit of the contract represents a $1 pay-out if correct.
Probability Odds Pay-out Formula: Stake/Probability Odd = Pay-out
Decimals Whenever you see odds displayed in numeric form (i.e. 9.00), with a value greater than 1, this is a decimal odd. Decimal odds allow you to easily calculate your pay-out if the market resolves to the outcome you backed.
Decimal Odds Pay-out Formula: Stake x Decimal Odd = Pay-out
To convert Decimal Odds to Probability odds you simply need to divide the Decimal Odd by 1.
For example, a Decimal Odd of 5.00 implies a Probability of 0.20: 1/5.00 = 0.20.
American Style American Odds (most popular with U.S. based sportsbooks) are centred around winning or wagering $100 on a given bet, though you don’t need to actually wager $100. It scales up and down depending on your position amount.
The odds for favourites will have a minus (-) sign in front, and indicate the money you need to stake to win $100.
American Odds (-) Pay-Out Formula: ((100/odd) x Stake) + Stake = Pay-out The odds for underdogs will have a (+) positive sign in front, and indicate the amount won for every $100 staked.
American Odds (+) Pay-Out Formula: ((Odd/100) x Stake) + Stake = Pay-out In both cases, winners get their initial stake back in addition to their winnings.