Bookmaker Margin: what is it?
Online bookmaker offices get the fixed profit, and the size of this profit depends on the percent of margin. Each office has their own value of a margin and, certainly, it is better to stake in those bookmakers, who have got lower margin. Here we will also talk what bookmaker margin is.
For better understanding, we will review the following example: two teams, for example, Spain and Brazil, are playing in the World football Championship. These are equal teams which have the identical chances to win the match. And ideally, without the margin, the line should look like: 2.00 and 2.00 odd on winning of each team, that is 50/50. And what bookmakers do? - In that case, they give a line with odds 1.90 and 1.90. And the difference between the published odds and the fair odds is the bookmaker margin. Thanks to this margin the bookmaker has got the guaranteed profit. Every bookmaker office has its own margin and usually its size is from 2 % to 15 %.
How to count a bookmaker margin?
It is possible to define its size with the help of the following formulas:
- If it is a two-outcome event, it is possible to count using such formula:
(100/O1+100/O2)-100 = margin.
- If it is three-outcome event: (100/O1+100/O2+100/O3)-100 = margin.
It is necessary to notice that O1/O2/O3 in these formulas are odds for the first, the second and the third outcomes.
At the moment the minimum bookmaker office margin is 2 %, which is possible to see in Pinnacle, Matchbook, Marathonbet.