Beginner Lesson 4 of 12

Bankroll Basics

Key Takeaways

  • Your bankroll is money set aside exclusively for betting
  • Never bet more than 1-5% of your bankroll on a single bet
  • Good bankroll management protects you during losing streaks

What Is a Bankroll?

Your bankroll is the total amount of money you've set aside specifically for betting. This should be money you can afford to lose - never bet with rent money or funds needed for essentials.

Think of your bankroll as your betting capital. Professional bettors treat it like a business investment, protecting it carefully to ensure they can continue betting long-term.

A separate bankroll helps you track performance accurately and prevents the common mistake of chasing losses with money you can't afford to lose.

Unit Betting System

Most successful bettors use a unit system. One unit typically equals 1-2% of your total bankroll. If your bankroll is $1,000, one unit would be $10-20.

Standard bets use 1 unit. Higher confidence bets might use 2-3 units, but rarely more. This discipline ensures no single loss can devastate your bankroll.

As your bankroll grows or shrinks, adjust your unit size accordingly. This keeps your risk consistent and allows your bankroll to compound when winning.

Surviving Variance

Even skilled bettors experience losing streaks due to variance - the natural fluctuation in results. A 10-bet losing streak is not uncommon, even with a positive edge.

With proper bankroll management (1-2% per bet), you can survive these downswings. Betting 10% per bet means a 10-loss streak wipes out 65% of your bankroll. At 2% per bet, you'd only lose 18%.

Practice with These Calculators

Dive Deeper with Our Guides

Test Your Knowledge

Answer these questions to complete the lesson and track your progress.

1. What is a betting bankroll?

2. If your bankroll is $1,000 and one unit is 2%, how much is one unit?

3. Why is bankroll management important?