Fixed odds betting is the term for placing wagers with a bookmaker at agreed odds. Basically you make your selection, such as which horse will win a specific race, and the bookmaker you’re betting with will give you odds for your wager.
You pay your stake at this point. If your selection turns out to be correct then you’ll be paid out based on a combination of whatever odds you got and the amount you staked. If your selection is not correct then the bookmaker keeps your original stake.
With fixed odds betting you know how much you can win at the time of placing your bet, with one exception. Sometimes you may have to take what is known as the starting price (SP). This means that you’re not getting agreed odds at the time of placing your wager, but rather are taking whatever the odds happen to be when the race starts.
There are three ways that bookmakers can express the odds for a wager– fractional odds, decimal odds, and moneyline odds.
As a general rule, fractional odds are used in the United Kingdom, decimal odds are used in Europe, Canada and Australia, and moneyline odds are used in the United States. However, any bookmaker can use any odds format it chooses to, so it’s a good idea to understand how the different methods for quoting odds work.