What is a Parlay Bet?
A parlay bet is a popular form of sports betting where a bettor combines two or more individual bets into one single wager.
In a parlay, all the bets must win for the entire parlay to be successful. If even one bet in the parlay loses, the entire bet is lost.
However, a parlay payout is significantly higher than placing each bet separately. This is because the payout odds are multiplied, increasing the potential return on the original stake.
Parlays can include a variety of individual wagers, such as point spreads, moneylines, and totals, across different games or within the same game (known as same-game parlays).
Understanding Parlay Odds
Parlay odds refer to the combined betting odds of all the wagers within the parlay.
Understanding how these odds work is crucial for bettors who want to maximize their potential payouts while managing their risk.
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For example, in a two-team parlay, if both teams have odds of +150, the parlay odds would be significantly higher than either bet alone.
How Are Parlay Odds Calculated?
Calculating parlay odds involves multiplying the odds of each individual bet included in the parlay.
For example, if you place a parlay bet on three teams with American odds of +200, +150, and +100, you would first convert these to decimal odds before multiplying them together. This process will give you the overall parlay odds.
Let's take a more detailed look at this process. Suppose you have the following bets:
- Team A at +200 (which converts to 3.00 in decimal odds),
- Team B at +150 (which converts to 2.50),
- Team C at +100 (which converts to 2.00).
To calculate the parlay odds, you multiply the decimal odds: 3.00 2.50 2.00 = 15.00. These are your overall odds for this parlay. If you wager $100 on this parlay, your potential payout would be $1,500 ($100 * 15.00).
Parlay Odds Formula
The basic formula for calculating parlay odds involves converting American odds to decimal odds and then multiplying those decimal odds together. The formula looks like this:
Decimal Odds = (American Odds / 100) + 1 (for positive odds) or Decimal Odds = 1 - (100 / American Odds) (for negative odds).
Once you have the decimal odds for each individual bet, you simply multiply them together to get the parlay odds. The resulting figure represents the total odds for the parlay bet.
For example, if you're dealing with a two-team parlay with odds of +150 and -110, the calculation would be:
- Convert +150 to decimal: (150 / 100) + 1 = 2.50
- Convert -110 to decimal: 1 - (100 / 110) = 1.91
- Multiply: 2.50 * 1.91 = 4.775
This means the total odds for this parlay bet are 4.775, or approximately 3.78/1 in American terms.
Calculating Parlay Odds with a Parlay Calculator
A parlay calculator is a useful tool for quickly determining the potential payout of a parlay bet. It automates the process of converting American odds to decimal odds, multiplying them together, and then multiplying by the bet amount to provide the total potential return.
For example, if you're considering a four-team parlay with odds of +150, +200, -110, and +100, you can input these into a parlay calculator to instantly see the total payout.
The calculator handles the complex multiplication, allowing you to focus on selecting the best bets rather than doing the math yourself.
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Types of Parlay Bets
There are several types of parlay bets that bettors can choose from, depending on their strategy and risk tolerance.
The most common type is the team parlay, where the bettor combines bets on two or more teams to win their respective games. This is popular in sports like football and basketball, where multiple games occur simultaneously.
There are also correlated parlays, where the outcomes of the individual bets are related. For example, in a single NFL game, betting on a team to cover the point spread and on the total score to go over might be correlated.
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Risks and Rewards of Parlay Betting
Parlay betting is known for its high-risk, high-reward nature. The potential payouts are much larger than those of single wagers because the odds multiply across each individual bet.
The risk is equally amplified, though, as the bettor must win every single bet within the parlay for the parlay to win, although a push may keep a win in play, albeit at shorter odds.
The risk in parlay betting is that even a small mistake or an unexpected outcome can result in the loss of the entire bet.
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Common Parlay Betting Mistakes
One common mistake in parlay betting is overloading the parlay with too many teams or bets.
While adding more bets increases the potential payout, it also significantly increases the risk of losing.
For example, a bettor might be tempted to create a parlay with six or more bets, drawn by the allure of a massive payout. However, with each additional bet, the chance of the entire parlay losing increases.
Another mistake is ignoring the correlation between bets. Correlated parlays can sometimes seem like a good idea, but many sportsbooks either restrict them or adjust the odds to reflect the increased probability of winning. Bettors should be cautious when combining bets that are not truly independent of each other.
Lastly, some bettors fail to use a parlay calculator to properly assess the potential payouts and risks.
They might overestimate their chances of winning without understanding how the odds multiply or underestimate the potential payout. Using a parlay calculator can help avoid these mistakes.
Parlay Betting Strategies
Effective parlay betting strategies often involve careful selection of bets and a deep understanding of the odds.
One common strategy is to focus on two-team parlays where the bettor has a strong conviction about both outcomes. This approach reduces the risk compared to larger parlays while still offering a decent payout.
Another strategy is to use parlay calculators to explore different combinations of bets. By testing various scenarios, bettors can identify which combinations offer the best balance of risk and reward.
Bettors might also consider using straight bets on individual games where the odds are more favorable, and only parlaying when they feel confident about multiple outcomes.
This approach helps mitigate the high risk associated with parlays while still allowing for the possibility of larger payouts.
Conclusion
Parlay bets offer an exciting way to engage in sports betting, combining multiple bets into one wager with the potential for larger payouts. The increased risk means that bettors need to be well-informed and strategic when placing parlays.
Bettors should always consider whether the potential payout justifies the risk and whether they are comfortable with the possibility of losing the entire bet if just one outcome doesn't go their way.
Parlay Odds FAQ
Odds calculation
How are parlay odds calculated?
Parlay odds are calculated by converting the odds of each individual bet into decimal odds and then multiplying them together. The result is the overall odds for the parlay.
Parlay Calculators
What is the benefit of using a parlay calculator?
A parlay calculator simplifies the process of calculating potential payouts by automating the conversion of American odds to decimal odds and multiplying them, allowing bettors to easily see the potential return on their wager.
Correlated Parlays
What are correlated parlays?
Correlated parlays involve bets that are related, where the outcome of one bet might influence the outcome of another. These are often restricted or adjusted by sportsbooks due to their higher likelihood of winning.
Risk Level
Why are parlays considered high-risk?
Parlays are high-risk because the bettor must win every single bet within the parlay for it to pay out. If even one bet loses, the entire parlay loses.
Moneyline Parlays
What is a moneyline parlay?
A moneyline parlay is a type of parlay bet where the bettor picks teams to win outright, without considering the point spread.
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