Margin

What is Margin?

Margin is the amount a bookmaker builds into a set of odds so the implied probabilities add to more than 100 percent.

Why it matters

Margin is the price of the bet. Two bookmakers offering the same market at different margins pay different amounts for the same correct prediction.

Example

A two-way market priced at 1.90 and 1.90 implies 52.6 percent on each side, 105.2 percent in total. The 5.2 percentage points above 100 is the margin.

Common misunderstandings

• Margin is the sports betting equivalent of house edge, not a fee taken from a winning bet. It is already inside the price before the bet is placed.

Frequently asked questions

How do I calculate margin from odds?

Convert each price to an implied probability by dividing 1 by the decimal odds, add them together, then subtract 100 percent.

Is a lower margin always better?

A lower margin means a better price for the same outcome. Other factors such as limits, settlement speed and market availability also matter.

Related terms

• Odds
• Bookmaker
• Probability
• House Edge
• Payout Ratio