What is Expected Value? How to Calculate EV in Betting
When you are in the field of matched betting, there are few terms that you should know, in order to keep your conceptual understanding clear. This also helps you to design better, more result-oriented strategies that bring more profits to your account. One such important terms in this context is Expected value or in short EV.
Another name for EV
The most common way EV is called is Expected Value. There are some platforms that also expand the term as Estimated Value. Both these terms basically means the same thing.
What is EV?
Firstly, it is important to know what EV is not, in order to avoid confusion, if any. EV is not the amount of money you expect each time you bet for the occurrence / non-occurrence of an event. This is not the profit margin one would expect each time he bets.
EV is the value for your betting returns in the long run. It considers betting numerous times over a period, and calculates the amount accordingly. In most of the cases, a reliable calculator on a top betting platform gives you the relevant details about this EV.
Positive EV / Negative EV
Simply put, when you notice that the calculator is showing you a positive EV, you should consider going for the offer. There are chances of registering profits in the long term. But, when EV is negative, you are expected to lose money playing in the long run. You should avoid such an offer or situation.
Meaning of larger EV
Larger, positive EV means you have chances to win big from the offer. You should never miss the opportunity to grab the offer and bet, when the calculator shows you a good, solid EV for the offer. If the positive EV is small, the profit margin you register is small.
Basic formula to calculate EV
The process of calculating EV is not complex, and you can easily do it with some paperwork. Still, using a feature-rich and reliable betting calculator is always preferable in this regard.
EV is calculated by multiplying the probability of occurrence or non-occurrence of event 1 with profit or loss if that occurrence / non-occurrence is realized.
EV = [(Probability of even 1) X (Profit or loss when even 1 takes place)] + …….
When there are multiple events, the same chunk of calculation gets added to the series, giving you the desired result.
Why you should use a calculator to determine EV?
Starters in the betting world could struggle to determine EV suitably. Calculation on paper could be cumbersome when there are multiple events and crucial stakes and odds in place. Any minor mistake could jeopardize the prospects of earning big profit margins. Hence, it is recommended to explore a user-friendly calculator and utilize its features to calculate the EV of a particular offer, or even numerous offers, in the betting market.
Assess EV and implement betting strategies
Use the EV data to design and implement better betting strategies, earning more profits sustainably.
The best place in the UK to learn about matched betting is with Profit Squirrel, using our incredible and risk-free method. Thousands of our members are earning over £500 each and every month. >> Sign Up For Free Here <<
Other Similar Articles