Hey there! Terry here, back with another guide for my favorite community of betting aficionados. If you‘ve placed a bet before, you know a wager is fundamental to the act of betting. But what exactly is a wager, how does it work, and how can you use wagers skillfully? I‘ve crunched the numbers and done the research to break it all down for you.
Defining "wager"
Simply put, a wager is the amount of money you voluntarily risk when you make a bet. You agree to forfeit your wager if your prediction proves wrong.
For example, if you bet $50 that the Patriots will win the Super Bowl, your wager is the $50 you could lose if they don‘t win.
The other party accepting your wager agrees to pay out predetermined winnings if your prediction comes true. The amount they pay depends on the odds.
So a wager is the the heart of the betting transaction between you and the bookmaker. Now let‘s look at how wagers work in different types of bets.
How wagers work in different bet types
There are countless types of bets, but they all boil down to you predicting an outcome and placing a wager on your prediction. Here are some examples:
Moneyline bet: You predict who will win an event. Your wager risks a set amount to win a varying amount based on the moneyline odds.
Point spread: You predict whether a team will win by more or less than a set margin. Your wager risks a fixed amount to win the same fixed amount if you choose the right side.
Totals (over/under): You predict whether the total points scored will exceed or fall short of a set line. Your wager risks a fixed amount to win a fixed amount if your over/under guess is right.
Parlays: You combine multiple picks in one wager, all of which must hit for you to win. The potential payouts are higher but so is the risk.
As you can see, the wager is the constant in every bet type – it‘s the amount you willingly put at risk when you make your prediction. Now let‘s look at how to determine suitable wager amounts.
How to determine your wager amount
As a general rule, you want to wager an amount that is in proportion with your overall bankroll and with the riskiness of the bet. Here are some factors to consider:
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Bankroll – Your total gambling budget should dictate the top end of your wager amount range. Don‘t risk your whole roll on one bet!
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Betting unit – Determine a standard wagering unit, like 2-5% of your bankroll. Use units to size each wager appropriately.
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Odds – Higher risk bets require a smaller percentage of your bankroll. Lower risk allows for slightly larger units.
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Risk tolerance – How much loss can you stomach? If your tolerance is lower, wager less per bet.
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Confidence – The surer you feel about a pick, the more justification for a chunkier wager. But don‘t get cocky!
Let‘s say your bankroll is $1000. Using a 2% betting unit, your standard wager would be $20. For a high confidence moneyline pick at -150 odds, you could bet $30. For a riskier parlay at +600, $10 might be more prudent.
Expected value – why it pays to shop for the best lines
Expected value (EV) is a useful concept for gaining an edge with your wagers. EV calculates how much a bet will pay out on average over the long run.
Positive EV means potential average profit, while negative EV means average expected loss. The key is finding bets with the highest positive EV to maximize your winnings long-term.
Here‘s an example:
The Lakers are playing the Heat and Book A has Lakers at -105 odds, while Book B has Lakers at -115.
The fair odds are around -110, so Book A is offering a better line with positive EV. If you bet $100 on Book B, your expected return is $100 x (1/1.15) = $86.96 for a negative EV of -$13.04.
But if you bet that $100 at Book A at -105, your expected return is $100 x (1/1.05) = $95.24 for a positive EV of $4.76.
The takeaway: Shop around for the best lines to create positive expected value and maximize your win rate. An extra moment finding the top odds for your wagers can boost your profits big time in the long run.
Managing your bankroll and wagers
Bankroll management is huge for betting success. Your risk-per-wager should be small enough that you can withstand inevitable losing streaks without going broke, but large enough that wins are meaningful.
As a general rule, limit your bankroll risk to 1-5% per wager. So if your bankroll is $1000, your average wager size should be $10 – $50.
Here are some other bankroll management tips:
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Set a gambling budget and stick to it. Don‘t add more halfway through.
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Keep most of your bankroll safe and only put a small portion in play.
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After big wins, withdraw profits so they can‘t be lost on future bets.
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After big losses, take a break to reset mentally before continuing.
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Never chase losses by making bigger, reckless bets. This is a surefire way to dig yourself into a deeper hole.
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Have accounts at multiple books so you can shop odds and take advantage of the best lines.
In summary
There you have it – a complete lowdown on wagers, how they work, and factors to consider when deciding on wager amounts. The key takeaways:
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A wager represents the amount of money you risk on the outcome of your bet.
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Odds determine the potential winnings you‘ll collect on a winning wager based on the risk.
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Proper bankroll management and betting unit strategy helps size wagers appropriately.
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Find bets with the highest expected value to maximize potential profits.
I hope this gives you a helpful understanding of how to use wagers strategically and responsibly. Let me know if you have any other betting questions! I‘m always happy to help fellow sports enthusiasts make the most of their wagers.
