Understanding Negative vs Positive Odds in Sports Betting

In the world of sports betting, understanding the difference between negative and positive odds is crucial to placing informed wagers and managing your bankroll effectively. These odds formats are most commonly found in American odds systems and are denoted with either a minus sign (–) or a plus sign (+) preceding a number. Both indicate how much money can be won or needs to be wagered, but they serve different functions depending on whether the bet is on a favorite or an underdog.

What Are Negative Odds?

Negative odds indicate the favorite in a given matchup. When a sportsbook lists a team or outcome with a minus sign (e.g., –150), it signifies that this team is more likely to win according to the bookmakers. The number following the minus sign shows how much you must wager in order to win $100 in profit.

Example of Negative Odds

If the New York Yankees are listed at –150:

• You need to bet $150 to win $100 in profit.
• A total payout would be $250 ($150 stake + $100 profit).

The higher the negative number, the stronger the favorite, and the lower your return on investment. For instance, –200 means you must wager $200 to win $100, which carries more risk for a smaller profit.

What Are Positive Odds?

Positive odds indicate the underdog in a matchup. A plus sign (e.g., +200) means that the team is less likely to win, but the potential payout is higher. The number shows how much you would win in profit on a $100 bet.

Example of Positive Odds

If the Detroit Tigers are listed at +200:

• A $100 wager would yield $200 in profit.
• The total payout would be $300 ($100 stake + $200 profit).

Positive odds provide larger payouts but come with greater risk since the team or outcome is less likely to win.

Key Differences Between Negative and Positive Odds

Calculating Payouts

To manually calculate the payout:

• Negative odds:
  Profit = (100 / |odds|) × amount wagered
  Example: For –150 and $300 wagered:
  (100 / 150) × 300 = $200 profit
• Positive odds:
  Profit = (odds / 100) × amount wagered
  Example: For +200 and $150 wagered:
  (200 / 100) × 150 = $300 profit

When to Bet on Negative or Positive Odds

• Negative odds are ideal when you want to bet on a likely winner. It’s safer but offers a smaller return.
• Positive odds are best suited for high-risk, high-reward strategies. Bettors use them when they believe the underdog has a good chance or when chasing higher returns.

Final Thoughts

Both negative and positive odds offer strategic opportunities in sports betting. Understanding how they work empowers bettors to analyze risk versus reward and make smarter betting decisions. Whether you’re backing the favorite or taking a chance on the underdog, knowing what the odds mean is essential to your long-term success in sports wagering.