Odds and payoffs are inextricably linked together. They are versions of the same concept seen from a different point of view and, along with probabilities, they are the mathematical backbone of games of chance and gambling. They are also a wonderfully simple lead-in to the much more complex world of markets and finance where the preferred term for payoffs is returns.
The first important concept in any gambling establishment is the house take. Continue reading Binary Options – Probabilities, Odds, And Payoffs