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--- | ||
title: Margin Adjustments in Sports Betting | ||
linkTitle: Margin Adjustments | ||
description: Learn how to adjust margins in sports betting to set your own odds based on the data the Cloudbet B2B API supplies. | ||
weight: 10 | ||
type: docs | ||
--- | ||
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You can integrate the Cloudbet B2B API and set your own odds based on the data supplied, enabling you to carve out a profitable margin for each transaction. Alongside margins, you can also take control of and share liability from the individual bets that players or customers place through your platform. | ||
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### Basic Implied Probability Calculation | ||
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The implied probability of an outcome is initially calculated from the given odds and the overround. For a specific betting market: | ||
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```math | ||
\tag*{(1)} \text{Implied Probability} = \frac{1}{\text{Odds} \times \text{Overround}} | ||
``` | ||
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This calculation gives a base probability adjusted for the bookmaker's initial margin embedded within the odds. | ||
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### Adjusting the Overround | ||
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To reflect changes in market conditions, event specifics, or risk assessments, the overround is adjusted by adding a margin percentage: | ||
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```math | ||
\tag*{(2)} \text{Adjusted Overround} = \text{Overround} + \text{Margin Percentage} | ||
``` | ||
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This formula ensures that the total market margin is adaptive and adjusts with the origin. | ||
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### Recalculating Odds with Adjusted Overround | ||
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After adjusting the overround, new odds are recalculated as follows: | ||
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```math | ||
\tag*{(3)} \text{New Odds} = \frac{1}{\text{Implied Probability} \times \text{Adjusted Overround}} | ||
``` | ||
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This method of recalculating the odds maintains the relative value between different outcomes while adjusting the overall margin. | ||
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### Example Calculation | ||
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If the initial odds for a team winning are 2.0 with an overround of 1.05, the implied probability is: | ||
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```math | ||
\text{Implied Probability} = \frac{1}{2.0 \times 1.05} = 0.4762 | ||
``` | ||
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If the margin percentage is adjusted to 1.10, the new odds would be: | ||
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```math | ||
\text{New Odds} = \frac{1}{0.4762 \times 1.10} = 1.91 | ||
``` | ||
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These recalculated odds reflect the adjusted margin and provide a new market price for the outcome. |