What is stake? Stake is the risk that a bettor assigns to a particular bet. It is, therefore, a subjective value that the bettor establishes based on the confidence they have that a certain bet will win. It is generally quantified on a scale of 1 to 10, with 1 being the minimum confidence and 10 being the maximum.
For example, imagine that Real Madrid is facing a Segunda B team in the Copa del Rey and needs a victory to advance to the next round. Given the circumstances, betting on Madrid's win seems very secure, so the stake would be high, around 8.
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The stake and its allocation to bets
Although subjectivity plays a big role in stake betting, it is possible to establish a series of guidelines that relate each type of bet with the appropriate stake:
These are bets with a very low probability of being won, but their odds are not placed correctly and are extraordinarily high.
These are bets where there is a lack of confidence because a surprise is being sought or there is not enough information.
They are bets that are backed by an analysis of the available information, in which a majority of factors are in favor of them.
They are exceptionally good bets where there is a high quota wrongly placed or we have access to last-minute information that makes it even more likely.
They are almost sure bets, in which a series of adverse circumstances would have to occur for them not to come out.
The stake and the management of our money
Stake is usually linked to the amount of money from the bankroll that will be bet on a particular wager. It is logical to invest more money in a bet that inspires more confidence, while moderating the amount to be played in a bet that is considered more risky. It is common to attribute a percentage of the total money allocated for betting to each stake value in a linear manner.
- Stake 1 – 0.5% of our total money
- Stake 2 - 1% of total money
- Stake 3 - 1.5% of our total money
- Stake 4 - 2% of our total money
- Stake 5 - 2.5% of our total money
- Stake 6 - 3% of our total money
- Stake 7 – 3.5% of our total money
- Stake 8 - 4% of our total money
- Stake 9 - 4.5% of our total money
- Stake 10 - 5% of our total money
If we use 100 dollars for betting and assign a stake of 4 to a bet, we should play 2% of those 100 dollars, which in this case would be 2 dollars. If we assigned a stake of 7, we should bet 3.5% of the 100 dollars, that is, 3 and a half dollars.
The stake and the odds
The odds found in betting houses express the probability of a certain event taking place. This probability can be taken as a reference when assigning the stake to a bet. Following this principle, the higher the odds, the higher the risk, so a low stake should be set. On the contrary, the lower the odds, the higher the stake should be.
The victory of Barça in the Copa del Rey against a Second B team is priced at 1.10. This quota implies that the house or the betting market estimate that there is around a 90% chance of it happening and therefore a high stake of 9 would correspond to it. In the opposite case, the victory of the Second B team is priced at 15.0, which amounts to a probability of around 7%. In this case, the stake should be set at 1.
Simplified Staking for Beginners
Many people who are new to the world of betting find it difficult to establish confidence values based on a ten-level scale. One way to make it simpler is to reduce confidence values to only three levels: risky bets, normal bets, and safe bets.
- Low stake: would be attributed to all risky bets, either for being in favour of the underdog, having a very high odd, not being able to analyze them thoroughly or due to lack of information.
- Medium stake: this is where most bets would probably be. Typically, the odds will range from 1.50 to 2.50, and we will have analyzed enough information to make a decision.
- High stake: this stake would be for the safest bets. It's most likely that the odds will be low, poorly placed, or in the analysis of information, all factors speak in favor of it.