Unit BettingJul 7, 2012
We have received numerous emails asking us for an explanation of unit betting and we will try to do our best here to explain it. If you are new to wagering it may seem complicated, however, it is quite simple.
A unit represents a percentage of your bankroll that you are willing to risk on each game. Once you establish the value of 1 unit, it never changes. You may increase your units at some point but that unit price remains constant.
Lets assume that your starting bankroll is $500.00. Now, let's assume that you are willing to wager 10% of your bankroll on each game. Therefore, 1 unit = $50.00, or 10% of 500.00. If you are willing to wager 5% of your bankroll on each game, 1 betting unit would then equal $25.00.
PLEASE NOTE: We are simplifying this system by using 10% as an example only. We do not recommend wagering 10% of your bankroll on one game. A more practical approach and the one we use is wagering 2.5 % of your bankroll on each game.
As your bankroll increases, so does the amount of units per bet. For instance, if you doubled your bankroll to $1000.00 and are still willing to wager 10% of your money on each game then your wager would be 2 units instead of 1, or $100.00.
Simply put, all you need to do is decide what percentage of your bankroll you are willing to risk on a single game and convert that to a dollar figure. You now have the value of one betting unit and that value remains the same forever. The amount of units you wager per game may change but the value of one unit does not.
When you see our record indicate that we are up/down 50 units on the year, the actual monetary figure is not relevant. What is relevant, is the units won/loss on the year and that is why we track it this way.