In practice, the starting price is determined by the bookmaker based on various factors, including the horse’s past performance, jockey statistics, and overall market trends. Bettors can choose to place their bets at the starting price or earlier, with the understanding that the odds may change as more information becomes available. The starting price is crucial for settling bets when the event concludes, especially in horse racing where the odds can vary widely.
Starting Price Example
For example, in a horse race, if a horse is listed with a starting price of 5/1, this means that for every $1 bet, the bettor will win $5 if the horse wins the race, plus their initial stake back. If a bettor places a bet on this horse at the starting price just before the race begins and the horse wins, the payout will be based on the 5/1 odds.