What do horse racing odds mean? A Melbourne Cup guide

The Melbourne Cup is Australia's most famous horse race. Since 1861, people around the world have revelled in the excitement and action of a full day of racing in Flemington.

Betting odds are what bookmakers believe is the likelihood of an event or events happening. The odds of each horse are decided by bookies who take into account several factors to work out the chances of that horse winning.

The lower the odds, the more likely a horse is to win and place. It's also worth tracking down low-odds horses backed into short prices by bookmakers to get better dividends.

Horse racing odds are based on the form and chances of the horse. If you are putting a couple of dollars on an individual race, any horse with odds of under $5 should be considered as a good pick for a single race bet. Some bookmakers have different odds so it's important to work out which bookmaker is offering the best deal.

Horse racing is a lot of fun but nothing is guaranteed. Melbourne Cup winners have come from behind to win the race.

This year's Melbourne Cup Carnival is just around the corner. Michelle Payne rode Prince of Penzance to victory in 2015 with 100 to 1 odds.