The central idea
Dutching divides one total stake across mutually exclusive outcomes so each listed result targets a similar gross return.
Stakeᵢ = total × reciprocal oddsᵢ ÷ reciprocal sum
Worked example
At odds of 2.40 and 3.00, a 100-unit budget is divided approximately 55.56 and 44.44. Either listed outcome targets roughly 133.33 units back before costs.
Limits of the calculation
Dutching is not automatically arbitrage. If reciprocal prices total exactly 100%, the allocation breaks even; above 100%, it locks in a theoretical loss.