Margin - definition and calculation of Margin

Margin: in all institutions, including bookmaker's offices minimum withdrawal in parimatch, related to finance, there is this concept. But what it is and how to use it - not many customers know. We need to understand it in order to use it to our advantage in the future.

Margin is a French word. It means the difference, the other value - the advantage. It is added to the odds in BK. Actually it is the commission of an office.

The essence of this concept can be interpreted as follows:

- Margin is the share that the BC will receive from the amount invested by the client. And it does not depend on the result of the competition, the outcome of the event.

Example. Two equal opponents are competing. There should not be a draw. That is, the probability of winning each 50%. In other words, the odds of each is 2 (100/50). But in the BK will put odds of 1.9 rarely 1.95, because the bookie has to earn. The difference goes to him. This is the margin. And he gets it from both sides.

In general, bookmakers' offices are divided into two types:

- low margin;
- fundamental.

The latter are considered to be classic and designed to rest in the game. They charge a margin of at least 5 percent, or even more.

In low-margin, the percentage of margin is always lower. It is laid in the range of 1.5 to 2.5 percent.

There are a few other differences between low-margin BKs. These are:

- There are few bets in the prematch;
- maximum;
- Lack of live betting.

It should be noted, that low-margin BKs are focused on maximum high precision odds, and the fundamental ones are focused only on clients' losses.

Actually it is not difficult. For example, there are two possible outcomes of a competition. A certain ratio is pledged. Margin is defined as a percentage. Denote it by the letter M. The coefficients of both outcomes - K1 and K2. They can be equal, but it does not matter. The formula for the calculations will look like this:

- M = (1/K1 1/K2) x 100.

Here, in fact, is the simplest calculation of margin. It is quite enough for a beginner to calculate the estimated share of the bookmaker's office from the bet amount. And after he gains experience, skill and knowledge, you can move on to more complex margin calculations.

Knowing the bookmaker's margin is necessary because the lower it is, the higher the odds are. This means that the winnings are much higher.