Understanding fractional odds

Here is an explanation of fractional odds, taken from this forum thread:

"In Australia, odds are almost always displayed in decimal format. For example, for tonights State of Origin match between NSW and QLD the odds are 1.68 and 2.25. If you hear someone talking about these odds they might add a dollar sign in front so that it becomes $1.68 and $2.25.

What these odds mean is that if you bet $1 on NSW you would receive $1.68 back if they win. $1 would be your stake $0.68 would be your profit. If you bet on QLD and they won you would get $2.25, $1 stake and $1.25 profit.

Ocassionally you might also hear someone talk using fractional odds. Fractional odds are common in the UK, although they are becoming less popular. Fractional odds are displayed in this format 2/1 (pronounced two to one), or 9/4 (nine to four). When odds are below 2.00 you might see 1/2 which can be pronounced as ‘two to one on’.

When using fractional odds, the first number in the fraction is the profit amount and the second number is the stake amount. For example if you bet $1 at odds of 2/1 you would receive $2 profit if the bet wins. You would also get your $1 stake back. This is the equivalent of decimal odds of $3.00.

To convert fractional odds to decimal you divide the first number by the second number and then add 1. So 2/1 becomes $3, 1/2 becomes $1.50 and 9/4 becomes $3.25

There aren’t many times when you will need to use fractional odds in Australia but it is good to know how they work just in case."