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Even if you simply follow the Racing Post Tips section to find your horse racing selections Jalen Collins Falcons Jersey , you need to understand the bookmakers ‘book’. Evey punter on the planet must learn this lesson inside and out.


One of the key things that you must understand is how any bookmaker creates his or her ‘book’ and how that may affect the way that you approach your betting. The ‘book’ is simply the term used to describe the group of prices that the bookmakers create on any one horse race or any potential betting event! It does not even have to be a sporting event, all betting markets even political or television betting markets are created using this principle.


So when you watch horse racing on the television and you see the chalk boards (digital these days!) that display the prices for that race, this is the representation of a bookmaker鈥檚 鈥榖ook鈥?


To the untrained eye there may seem nothing amiss Austin Hooper Falcons Jersey , however you need to be warned that there is, so consider this one of today’s most valuable racing tips! Something that every single person betting on horse racing or indeed any event or sport for that matter. You would do well to learn this as quickly as possible 鈥?it is known as the overround!
Put simply, the bookmaker is not just in business in the chance he or she might make a profit. They are almost guaranteed to Deion Jones Falcons Jersey , because the prices on offer allow a profit margin. To work this out, you simply need to work out the real price of all selections in one event. Adding them together will not equal 100 (%) which you might think; they are guaranteed to be greater than!


Calculate the percentage of your Racing Post Tips to understand the bookmakers book for each race, calculate like this:


100 = The fair percentagesum of all events occurring.
A= Profit ratio of win return
B= Stake ratio required


100 Divided by (A+B) = Multiplied then by B = % Chance


If you do this calculation you will realise that any race or event when betting with the same bookmaker will show an overround figure (greater than 100%).


In a four horse race Keanu Neal Falcons Jersey , a bookmaker may choose to price up each horse at odds of 31 (4.0). In this book, were he or she to take equal amounts of money on each horse, they would break even Jalen Collins Jersey , as each horse would have a 25% chance of winning. In that the four runners have combined implied “probabilities” of winning of exactly 100%, this book has no overround. Long term the bookmaker would not be in profit as there is zero profit built in to this book.


In a four horse race, a bookmaker is more likely to price up each horse at odds of 52 (3.5). In this book Austin Hooper Jersey , were he to take equal amounts of money on each horse, he would make a profit of 14.3% on turnover. Therefore to do this all the bookmaker has to do is create their book with prices for all selections that include a built in overround margin. As the money comes in prices are adjusted accordingly to that this overround is protected. There are instances where a really well backed favourite will lose the bookmaker money on one race. However long term, just like casino’s the bookmakers have probability and the odds stacked in their favour! Note Deion Jones Jersey , any horse tipped up in the Racing Post Tips section is likely to run at a price less than it’s real chance!


The one thing to note is that the bookmaker鈥檚 advantage is increased in relation to how many horses or indeed viable selections there are to bet on. This creates a higher overround and in a race like the Grand National can help the bookmakers to potentially larger profit margins. So understanding that in theory the bookmakers advantage is reduced with less runners, you now know therefore that you stand a higher probability of winning as you bet against a book with a lower overround.


You are now able to appreciate where these prices originate and what they mean. When combining this with further education you begin to understand what price a horse really should be before you consider if it retains any investment value. This is one of the most crucial betting tips for beginners and one that will serve you well throughout your betting career. Remember to consider this information at all times, even if you still consider backing Racing Post Tips!

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