You see +200 on an international betting app and wonder what it means. South African bookmakers show decimal odds, so American odds can look strange. The good news: every odds format answers the same two questions. How much do you win, and how likely does the market think the outcome is?
This guide converts +200 into terms you use every weekend. It then shows how an option premium on a market like EUR/USD or gold prices risk in a similar way.
What +200 means
American odds use a base stake of 100. A plus sign shows the profit on a 100 stake. So +200 means a R100 bet returns R200 profit if it wins, plus your R100 back. Total return: R300.
A minus sign shows how much you must stake to win 100. At -150 you stake R150 to make R100 profit.
Converting +200 to decimal and fractional odds
Here is +200 in the formats you see in South Africa and the UK:
- American: +200
- Decimal: 3.00
- Fractional: 2/1
The formulas are short. For positive American odds, decimal odds = (American odds ÷ 100) + 1. For negative odds, decimal odds = (100 ÷ the number without the minus) + 1. So -150 converts to 1.67.
Implied probability: what the price is telling you
Every price hides a probability. Divide 1 by the decimal odds and multiply by 100.
At 3.00, the implied probability is 1 ÷ 3.00 = 33.3%. The bookmaker is saying this outcome happens about one time in three.
If your own research puts the real chance at 40%, the bet has value. If you think it is 25%, skip it. This is the single most useful habit you can build as a bettor.
Reading a betting line in practice
Say Orlando Pirates are 2.10 to win, the draw is 3.20 and the away side is 3.60. The implied probabilities are 47.6%, 31.3% and 27.8%. Compare those numbers with your own view of the match before you stake a cent.
Live odds change as the match unfolds. A goal moves every price in seconds because the probabilities change.
How an option premium works like odds
An option gives you the right, not the obligation, to buy or sell a market at a set price (the strike) on or before a set date (the expiry). You pay a premium for that right.
The premium works like your stake on a bet with fixed odds. When you buy a call or a put, the premium is the most you can lose. The payout depends on how far the market moves past the strike.
Here is a simple example with round numbers for illustration. You think EUR/USD will rise above 1.1000 within one month. You buy a call with a 1.1000 strike and pay a premium of 0.0050 per unit. Your break-even at expiry is 1.1050. Above that you profit. Between 1.1000 and 1.1050 you recover part of the premium. Below 1.1000 the option expires worthless and you lose the premium only.
What sets the premium
A bookmaker prices a team on form, injuries and money coming in. An option premium is priced on four main inputs:
- Distance from the strike: the closer the strike to the current price, the higher the premium.
- Time to expiry: more time means more chance of a move, so a higher premium.
- Implied volatility: when markets expect big swings, premiums rise. This is the closest thing to a bookmaker shortening odds before a derby.
- Interest rates of the two currencies in the pair.
Like a betting price, a premium also implies a probability. A cheap out-of-the-money option is the market’s version of a long shot at 8.00.
See premiums move in real time
AvaOptions streams live call and put prices on more than 40 currency pairs, plus gold and silver. You set the strike and choose any business day for expiry, from overnight to one year. You see the premium before you place the trade.
Open a free AvaOptions demo account and price a few calls and puts. Watch how the premium changes when you move the strike or the expiry. It is the fastest way to build intuition, with no real money at risk.
For the bigger picture, read sports betting vs options trading in South Africa. To protect your balance in both, see bankroll management for bettors and traders.
FAQs
Is +200 a good bet?
Only if you believe the true chance is above 33.3%. The odds alone do not make a bet good or bad.
What is +200 in decimal odds?
3.00. A R100 stake returns R300, including your stake.
Can I lose more than the premium when I buy an option?
No. When you buy a call or put, the premium is your maximum loss. Selling options is different and can lead to larger losses.
Risk warning: Options and CFDs are complex instruments. Leverage means you can lose money fast. Trade only with money you can afford to lose. This article is general information, not financial advice. Topbetza may earn a commission if you open an account through our links.
Gamble responsibly. 18+ only. If betting stops being fun, call the National Responsible Gambling Programme toll-free on 0800 006 008.