Betting glossary · B
Bankroll management explained
Bankroll management – Bankroll management means setting a fixed betting budget and staking only a small, predetermined share of it on each bet.
Your bankroll is the money set aside exclusively for betting. It is money you can afford to lose without getting into difficulty – not rent, not savings. Bankroll management ensures that a bad spell does not wipe out this budget straight away.
Units instead of gut feeling
Most systems work with units. A unit is a fixed share of the bankroll, often 1 to 2 per cent. Every bet is placed in units, usually one, perhaps two when you are particularly convinced. What matters is that stakes are fixed in advance and not adjusted after the last result.
The most common mistakes
- Chasing losses: Raising your stake after a defeat to win the money back. This is the quickest way to lose your bankroll.
- Staking by feel: "This tip is a sure thing, so I'll stake more." There are no sure things.
- Topping up the budget: When the bankroll is gone, more money goes in. Then it was not a budget but a first instalment.
- No records: Without a list of all bets, nobody knows where they really stand.
Fixed stake or percentage?
With a fixed stake (always €10), the maths stays simple. With a percentage stake (always 2 per cent of the current bankroll), stakes fall automatically in bad spells and rise when things go well. Both are reasonable. Sizing stakes according to your estimated edge is described by the Kelly criterion.
Bankroll management is not a winning system
It does not turn bad bets into good ones. It only ensures you stay in long enough for a real edge to show at all – or that a missing edge does not cost too much. If you notice that you keep breaking your limits, you will find help under player protection and limits.
Related terms
- Kelly criterionThe Kelly criterion is a formula that uses the odds and your own probability of winning to calculate the share of your bankroll that produces the strongest long-term growth.
- Single betA single bet is a bet on exactly one event – it wins or loses independently of any other bets.
- Value betA value bet is a bet whose odds are higher than the true probability of the event justifies – it has a positive expected value.
- Player protection and limitsPlayer protection covers the statutory and voluntary tools bettors can use to limit their gambling – from deposit limits to self-exclusion.
- Closing line valueClosing line value (CLV) measures whether your odds were better than the closing odds just before kick-off – the best long-term indicator of whether you are beating the market.
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Betting is gambling and can be addictive. 18+. Help: gamblingtherapy.org.