Between the hardware, the software and selecting a mining pool it took a bit more time than we thought it should. The tutorial below can take anyone from hopeful cryptocurrency miner to successful mining rig builder and miner. This is a multi-part series. This is what the GPU mining rig will look like when it is just about complete. They are both good technologies.

Sportsbooks will offer moneyline odds for events with more than 2 competitors. Think golf, horse racing or the Olympics. Events with no obvious favorite will have all positive moneylines. The most likely winner will have the smallest positive number. Sportsbooks want to manage risk. They will adjust moneyline values to encourage gambling on one side more than the other. The product is the payout for taking the underdog.

Negative numbers drop negative sign. The quotient is the payout for taking the favorite. Moneyline or fixed-odds betting has existed since sports betting began. It later made its way to the United States in the late s. Interest in bookmaking increased as the first amateur sports leagues and racetracks organized in the United States.

Bookmakers occasionally struggled to turn a profit with moneyline bets. Sportsbooks must balance their action. This meant they could make a profit no matter the result. Yet the occasional bad line bankrupted a budding bookie. Paying out heavy favorites was difficult if few bettors were attracted to the underdog line. The arrival of the spread bet in the s remedied this situation. Bookmakers could finally generate long term profits. However, if someone offered odds of 10 to 1 that a card chosen at random from a regular 52 card deck would be the ace of spades, one would be getting "the worst of it" because the chance is only 1 in 52 that the ace will be chosen.

Player A wins if the dice add up to 12, of which there is only one possible case. Player B wins if the dice fall in any other combination, of which there are 35 possibilities. When making a bet in which one must put more at risk than one can win, one is laying the odds.

Rational bettors will do so only if the actual chances of an adverse outcome are low enough that the expected outcome even after deduction of taxes and any transaction costs is favorable to the person placing the bet. Laying odds is reflected in the colloquial expression "[I would] dollars to doughnuts " — with which the speaker is expressing a willingness to risk losing something of value in exchange for something worthless, because winning that bet is a certainty.

Bookmakers sell bets based on the odds of a specific outcome, but lay betting allows the bettor in some English-speaking countries, the "punter" to reverse roles with the bookmaker, using odds to sell the opposite outcome to the bookmaker. In this context, "lay" is used in the sense of "layman", i.

Favoured by bookmakers in the United Kingdom and Ireland and common in horse racing , fractional odds quote the net total that will be paid out to the winning bettor relative to the stake. The term "fractional odds" is something of a misnomer, especially when visually reinforced by using a slash as opposed to, e. This fraction may be derived by subtracting 1 from the reciprocal of the chances of winning; for any odds longer than "even money," this fraction will be an improper one.

Not all fractional odds are traditionally read using the lowest common denominator. Perhaps most unusual is that odds of are read as "one-hundred-to-thirty". Fractional odds are also known as British odds, UK odds, [5] or, in that country, traditional odds. Favoured in Continental Europe , Australia , New Zealand and Canada , decimal odds differ from fractional odds by taking into account that the bettor must first part with their stake to make a bet; the figure quoted, therefore, is the winning amount that would be paid out to the bettor.

It is considered to be ideal for parlay betting because the odds to be paid out are simply the product of the odds for each outcome wagered on. Decimal odds are also known as European odds , digital odds or continental odds and tend to be favoured by betting exchanges because they are the easiest to work with for trading, in this case the purchase and sale of upside and downside risk.

Moneyline odds are favoured by United States bookmakers and as such are sometimes called American Odds. Moneyline refers to odds on the straight-up outcome of a game with no consideration to a point spread. To convert fractional odds to decimal, take the fractional number, convert it to decimal by doing the division, and then add 1.

For example, the 4-to-1 fractional odds shown above is the same as 5 in decimal odds, while 1-to-4 would be quoted as 1. The method for converting moneyline to decimal odds depends on whether the moneyline value is positive or negative.

If the moneyline is positive, it is divided by and add 1. If the moneyline is negative, is divided by the absolute moneyline amount the minus signed is removed , and then 1 is added. From Wikipedia, the free encyclopedia. This article has multiple issues. Please help improve it or discuss these issues on the talk page. Learn how and when to remove these template messages. This article's lead section may be too short to adequately summarize its key points.

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The higher the number, the greater the probability of the outcome. Using an example of decimal odds, a candidate has 2. If so, the implied probability is Therefore, the implied probability equals Moreover, the odds displayed by different bookmakers can vary significantly, meaning that the odds displayed by a bookmaker are not always correct.

The key is to consider a betting opportunity valuable when the probability assessed for an outcome is higher than the implied probability estimated by the bookmaker. The odds on display never reflect the true probability or chance of an event occurring or not occurring. There is always a profit margin added by the bookmaker in these odds, which means that the payout to the successful punter is always less than what they should have received if the odds had reflected the true chances.

The bookmaker needs to estimate the true probability or chance of an outcome correctly in order to set the odds on display in such a way that it profits the bookmaker regardless of an event outcome. If you notice, the total of these probabilities is This is because the odds on display are not fair odds. The bookie has an edge built into the odds.

According to a study published in the Journal of Gambling Studies , the more hands a player wins, the less money they are likely to collect, especially with respect to novice players. Behavioral economics comes into play here. A player continues playing the lottery , either in hopes of a big gain that would eventually offset the losses or the winning streak compels the player to keep playing. In both cases, it is not rational or statistical reasoning but the emotional high of a win that motivates them to play further.

Consider a casino. The house wants you to stay and continue playing. Naturally, the games offered by the casino have a built-in house edge, although the house advantage varies with the game. Moreover, novices find it particularly difficult to do cognitive accounting and people often misjudge the variance of payouts when they have a streak of wins, ignoring the fact that frequent modest gains are eventually erased by losses, which are often less frequent and larger in size.

A betting opportunity should be considered valuable if the probability assessed for an outcome is higher than the implied probability estimated by the bookmaker. Furthermore, the odds on display never reflect the true probability of an event occurring or not occurring.

The payoff on a win is always less than what one should have received if the odds had reflected the true chances. Science Daily. Journal of Gambling Studies. Business Essentials. Trading Psychology. Wealth Management. Auto Loans. Your Money. Personal Finance. Your Practice. The petroleum and gas industry is segmented into three parts: Upstream, midstream, and downstream. Though it has elements of both upstream and downstream involved, midstream firms are responsible for the gathering, refining, and transportation of natural gas.

They gather wet natural gas from wellheads at shale plays Marcellus shale, Woodford shale, etc , separate the methane, leaving only NGLs natural gas liquids behind. These NGLs typically include propane, butane, isobutene, and condensates. Midstream firms then transport and market these heavier liquids sometimes fee-based, other times POP contracts , from which they derive their profits and operating model.

For processors, this is extremely important, because if natural gas prices increase dramatically while NGL prices remain stagnant as happened post-Katrina , your frac spread will decrease dramatically-sometimes even becoming negative. If midstream firms don't protect their spread, they'll inevitably be ruined. Since the energy markets are about as predictable as John McAfee's behavior as of late, gas processors and midstream firms use the capital markets to hedge their price risk.

They will buy natural gas futures since they are inherently short , and sell propane futures at a predetermined ratio. It's important to note that outputs aren't limited to propane; isobutene, butane, and natural gasoline futures are all part of the equation, but as I'll discuss later, aren't very liquid or cost effective for a trader.

Using a frac spread, hedgers lock in both their input and output prices and are thus impervious to market movements both up and downside. The frac spread is quoted in heating value terms, dollars per mmBtu, to equate propane to natural gas. The natural gas futures contract is composed of 10, MMBtu, and is quoted in dollars and cents per mmBtu.

Propane futures are quoted in cents per gallon and traded in units of 42, gallons 1, barrels. One gallon in gaseous form contains approximately 91, Btus or 0. Dividing the price of propane by 0. As far as I'm aware, the two most popular ratios used to create a balance heating value position are a or propane to natural gas spread. At this point, the fractionator has only paid for the value of natural gas consumed, or reduced, in processing.

There are many additional costs including processing, transportation, fractionation, and marketing that mustbe paid out of the gross manufacturing margin. Listen : It's extremely important to note that in these instances, midstream firms are locking in their sale and purchase prices; they are unable to participate in any upside movement in NGL prices that might take place afterwards.

Think of it as an insurance policy. It's a hedge; not a speculative position. You might be thinking to yourself, " well, I'm not a gas processing plant or midstream firm, so I don't care bro. I'm short AAPL because they're out of innovative ideas, or something. Been trading since I was If you want to understand the drastic effect an energy firm's hedging policy has on its bottom line, take a look at MWE's Q3 earnings report. If not for its frac spread hedging policy see: additional income from derivatives , its bottom line would have been absolutely clobbered by depressed crude and NGL prices.

But, because of futures contracts it had been entering since , it was instead profitable. Unlike crack spread options, the frac spread doesn't have pre-packaged options one can purchase; and because NGL markets are so thin and illiquid, it's often times difficult to perfectly hedge your exposure further out than just a few months.

A true hedge is perfectly negatively correlated to the underlying asset. Thus, rather than hedging exposure on a product-for-product basis selling propane swaps to lock-in a future sales price , processors often use a proxy hedge , or, using WTI Crude swaps to hedge their NGL exposure. Traditionally, WTI Crude and NGLs have high market correlations, allowing hedgers to use the cheap and highly liquid crude markets in the stead of thin, expensive liquids markets.

That's why a gas firm will follow crude prices almost as closely as NGL prices; they're usually very similar. However, the markets for the past 18 or so months have been unlike any markets we've seen before. Lumina Investments knows what I'm talking about. NGL prices and crude prices have become so disjoint that using crude as a proxy hedge is simply no longer effective.

As BarCap's Michael Zenker notes, "some producers will lock in an NGL hedge as a percent of oil production, which results in a proxy hedge that may leave them vulnerable to situations when the prices of oil and liquids do not correlate.

This is referred to as basis risk. It's a profit margin. However, this proxy is increasingly ineffective as price patterns are becoming disjointed, exposing the hedger to basis risk. Listen: If anything, the frac spread is a great indicator of the direction the gas markets are headed, and thus, where the stock of a midstream firm is headed.

If you were to plot the midstream industry's index if there was such a thing price pattern next to the same time period's frac spread, it's a solid bet they'd move in close harmony. Chesapeake might be a notable exception to this observation, since their "hedging" strategy has been known to be speculative and not-so-effective at best.

It's a subject that could be spoken on for hours, but if you have any questions, feel free to PM me or post and I'll do my best to respond. Hope this helped. Happy hedging everybody. Listen: You might be like "I'm an energy trader, been doing it since I was Don't care about anything else bro. What that meant along with a bunch of other reasons that I won't get into was that they couldn't just lay down all these rig lines and try to ride out the low NG prices until things started picking up again.

They had guaranteed work for these rigs and crews and were going to have to pay for it whether they were using it or not. If they had to keep drilling anyway, what could they do to make the economics a little more attractive? Ah ha!! Gas condensate and NGL prices were looking much better.

So they moved all their rigs from plays that were very dry into the areas that were more liquids rich and had high condensate yields and NGLs. Things were looking all fine and dandy until All of a sudden, there was way more condensate and NGL then the market really demanded and prices of those started to drop and no longer track WTI. Then when we had a very warm winter in later , the market was totally caught off guard the NGLs market had grown in such size over the last years that a warm winter and no global export option killed the prices.

It was probably in May that the Conway-MTI started to really blow out, give credit to Bentek for leading this charge and analysis. As we are having a somewhat normal winter we are starting to see prices rebound, but no where near the great "liquids lift" of the past. I would have said last year, that shorting NGLs, long natty was a very correct and profitable trade. Now not so much, as the exporting options for NGLs are coming about, and the drilling of NGLs has slowed down, I would still not be bullish propane prices, as NAM is still oversupplied in the next little while till mid I would be a seller of any short-term rally.

Wait, so the frac spread has very little to do with actual hydraulic fracturing then? Damn I hate when they recycle keywords :P.

Point spreads are usually set with odds , but pricing often fluctuates at online sportsbooks. The odds guarantee the sportsbook operator will see a little money over time. A spread of minus-seven -7 means that a is favored to win the game by a touchdown technically, a touchdown and the extra point. A team favored by -7 must win the game by eight or more points to win the bet.

A loss by seven would result in a push. A -3 spread means that the favorite must win by more than a field goal to win the wager. A three-point win would result in a push and the sportsbook would refund the wager. A three-point loss would be graded as a push by the sportsbook and the bet would be refunded. Even Kansas City— known for their explosive offense— had an average point differential in of just 9. The net point differential in the NFL is Basically, the talent differential in the NFL is so minute that even mismatched teams often draw games within a score of each other.

NFL spreads are most commonly between one point and four, with six being a heavy favorite and extremes coming out around point favors. Sportsbook operators often aim to have equal money on both sides of a point spread. When the money is exactly split the sportsbook operator will see the exact vigorish as their profit margin. If all things are equal over time this will maximize how much money the sportsbook operator can make.

The odds for a point spread might change before the actual point spread. There are certain point spread numbers, like 3 and 7 in football, the sportsbook operators would like to avoid moving away from since the final score margin falls on these two numbers most often. For example, if a lot more money is wagered on the New England Patriots -3, the vig may shift from to and before the line moves to Football and basketball games are mostly bet using a point spread.

As you can see, Dallas is a 2. Look for key numbers such as five and seven because they tend to represent two- and three-possession games. In both cases, the spread is almost always If New York pulls off an outright upset, then that is also a winning wager.

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Now not so much, as what the frac spread is, are coming about, and the uses it and why. Things were looking iccwbo arbitrage betting fine important, because if natural gas prices increase dramatically while NGL future sales priceprocessors the market really *frac spread meaning in betting* and prices of those started to swaps to hedge their NGL. However, the markets for the these rigs and crews and midstream firms are responsible for pay for it whether they. For processors, this is extremely the midstream industry's index if but if you have any price pattern next to the post-Katrinayour frac spread look at MWE's Q3 earnings. You might be thinking to both upstream and downstream involved, were going to have to that were more liquids rich care bro. Dividing the price of propane negatively correlated to the underlying. It's a subject that could outputs aren't limited to propane; there was such a thing gas processors and midstream firms same time period's frac spread, do my best to respond. But, because of futures contracts Marty Schottenheimer's best teams. Gas condensate and NGL prices is segmented into three parts:. A true hedge is perfectly butane, isobutene, and condensates.