I am trying to find out a formula that helps me calculate the variance i need to add or subtract from an odd to match the demand. For exmple:
Let's say we have two teams, team A and team B. Both teams have the same odds at the start. -110 (1.91 in decimals). This is with no placed bets yet. After I receive the first bet, let's say for team A, I would like to change the odds for both teams accordingly depending on their payouts. If the first bet we received was of $100, i have to pay out 191 if team A wins. How would the odds change for both teams depending of the payout for each in order to achieve a balanced book?
If you need more details or my question is not clear enough, please let me know so i can make it better.