Fixed odds betting explained
This is the traditional form of betting with a bookmaker which most people associate with betting, so read on for more info.
How fixed odd betting works
You will be offered the option to bet at predetermined odds on a certain outcome. If the outcome takes place, you will be paid your winnings. If it doesn't you lose your stake.
Let's look at an example. We'll bet on a horse, Grey Wonder, at 5/1, to win. The left hand side of the odds tells you how much you will win if you bet the right hand amount.
So in this case, if you bet £1 you would win £5. This can then be scaled up or down, so bet £10 and you'd win £50. Remember a win refers to your profit, so a £10 bet that wins £50 means you actually receive £60 - your £10 stake plus the £50 winnings.
An even money bet means you win the same amount as you staked, so a £10 bet would payout £20 - your £10 stake plus the £10 profit.
"Odds on" is a term you may have heard. This just takes it one step further, and refers to any odds where the winnings are less than your stake. So odds of 1/2 would mean you win £1 for every £2 staked. Don't forget that when you win you always get your stake back so this £2 bet would return £1 plus £2, therefore £3.
Want to learn more? Read our How to calculate bookmaker percentages page and Decimal odds explained page.
For more information about the terminology of racing, see our Horse racing glossary. And to read about other types of betting, visit our Betting explained page.