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What is a bookmaker's margin?

A player who has made at least one bet in a bookmaker's office, faced with margin. In the early stages of betting, you do not always think about how important margin is and just do not pay attention to it, but with each new bet this concept becomes more important. This article tells in detail about the margin, how to calculate it correctly and how to know where it is better to bet to give less money to the bookmaker.

Bookmaker's margin - odds price calculation

Margin is a percentage of the accepted bet amount that a bookmaker's office earns on average, regardless of how the sporting event will end. Simply put, the margin is the bookmaker's commission for the services provided, which is initially incorporated into the odds.

To better understand the essence of margin, consider a volleyball match of equal strength teams in which there can be no draw and the chances of winning the opponents look like this - 50% to 50% (100%/2=50%). In an ideal market, the odds for each team would be equal to 2.00, but if the players put the same amount of money on their opponents, then the bookie will not earn anything, and it does not interest him at all. That's why the quotes for such sporting events look like this: P1 - 1,95 and P2 - 1,95, and more often P1 - 1,90 and P2 - 1,90, or even lower.

What are the margins of bookmakers?

Depending on how much margin bookmakers take, they are divided into two types: low-margin; fundamental.

Low margin bookmakers are those bookmakers who set the lowest margin on the market, usually it is in the neighborhood of 2%. Such bookmakers offer not the widest line of pre-match and play, as if encouraging the player to bet on the main outcomes of the meeting, thus receiving large sums on the same markets, due to this have profit.

Fundamental bookmakers offer wide prematch and live betting lines, they mostly make money on players' losses, so unexpected match results is the most profitable option for them. Margin at such bookmakers from 5% and above, depending on the company's policy. You should understand that the fundamental bookmakers is not a "rip-off", they just provide good quality services and charge for that a percentage in the form of margin. A classic example of a fundamental bookmaker is Pari match.

There are also betting exchanges, which do not take margin from the players, giving them the opportunity to trade among themselves. But here also has its disadvantages - first, the exchangers take a commission on winnings (which is essentially the same margin), and secondly, often put the desired amount at a favorable odds is not possible because it is limited to low supply from other players.