Implied probability and margin

Enter every mutually exclusive outcome of the same complete market at the same time. The arrow shows a proportional normalization; it is a model, not a verified true probability.

Worked example2.10 · 3.40 · 3.60 → S = 104.8086%; M = 4.8086%.

Calculation

pᵢ = 1 / Dᵢ; S = Σpᵢ; M = (S − 1) × 100%; qᵢ = pᵢ / S.

Worked example

2.10 · 3.40 · 3.60 → S = 104.8086%; M = 4.8086%.

American and decimal odds ↗

Useful next steps