Fixed-odds betting – Wikipedia
It’s customary with fixed-odds gaming to know the odds at the time of the placement of the bet (the”live cost”), but the group also includes wagers whose cost is determined only when the race or game begins (the”starting prices”). It’s excellent for bookmakers to price/mark up a book such that the net outcome will always be in their favour: the sum of the probabilities offered for all outcomes are going to be in excess of 100%. The excess over 100 percent (or overround) signifies profit to the bookmaker in the event of a balanced/even book. In an imbalanced book’s more common case, the bookmaker may have to pay out winnings than what is staked or may bring in more than mathematically. An imbalanced book may arise because there’s absolutely no way to get a bookmaker to know the true probabilities for the results of competitions left to human work or to predict the bets that are going to be attracted from others by fixed chances compiled predicated on personal view and knowledge.
With the arrival of Internet and bet exchange betting, books against bookmakers and exchanges and the chance of arbitrage activities has expanded significantly. Betting exchanges in particular act like a stock market, allowing the odds to be set in the course of trading between individual bettors, usually leading to quoted odds that are reasonably close to the”true chances.”
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