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All you need to know about soccer betting stake, ROI yield
Don't make a mistake with your bankroll. Understand ROI yield and other terminology
Published on 26 September 2018
Updated on 26 September 2018
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Sometimes we can all get confused about some of the sports and soccer betting language. There are a range of different words used to talk about the same thing, such as, Wager, Stake, Profit, ROI and Yield.
The constant use of similar words to talk about different concepts is a little confusing and sometimes it can become difficult to understand different websites and services using various combinations and different terminology to give you the same information.
Life would be a little easier if everyone always used the same words, but betting and gambling is never that simple!
Unfortunately, everyone has an opinion, and everyone tries to make the situation seem a little more difficult than the reality…
What do you need to know to be successful?
If we define Wager, Stake, Profit, ROI and Yield, this should help you to make some good progress and more effective bets over the long-term.
What is a wager in sports betting?
The wager is the process of making a bet. It is commonly referred to as a wager and is another word for bet. It is the act of risking something of value (usually money) on the outcome of an uncertain event.
In terms of sports betting, the amount of money that you risk with the bookmaker or sportsbook is the something of value and the uncertain event would be the outcome of a sporting event.
If the outcome of the event is unknown and you want to risk something of value against the outcome, then this would be known as a wager (or a bet).
Sometimes people refer to wager, as the actual amount of money risked, but a wager is really the process of making or placing the bet whereas the items(s) of value risked are more commonly referred to as the stake.
How to decide on good wagers over bad wagers?
Risking your hard-earned money is not a simple task and should not be taken lightly. You need to ensure that you’re taking the most care about your selections and you can find value selections.
Value means that we need to find the best selections for the best available price. This is not only related to the highest odds, but a balance of risk and return. Ideally, you want to find selections, which offer a potential return that is more suitable for given your stake.
What is a stake in sports betting?
The stake is the actual items of value risked within the wager. In terms of soccer betting this typically refers to the money risked on the outcome of the uncertain event, such as the outcome of a football match or the number of goals scored at half-time.
The stake is what you stand to lose and is the total of value items that you will risk on the outcome of your chosen event.
Online bookmakers, betting exchanges and high-street, stadium or race track bookmakers all offer the same opportunity for to place your stake (i.e. total value of what you want to risk) on your chosen outcome of the event.
What really happens to your sports betting stake?
We’re more concerned with sports gambling and specifically soccer betting at iwinsoccerbets, so your stake would be wagered on the outcome of a football match.
The bookmaker, sportsbook or matching party at a betting exchange decides if they want to accept your wager. They will give you a physical or an electronic receipt for your stake and keep a record of your wager, so everyone can track exactly how much you decided to risk, where you decided to place the wager and the exact details of your desired outcome.
As soon as your wager is accepted; you and the accepting party now form an official agreement that you will risk your stake on the outcome of an event and the accepting party agrees to return your stake alongside your winnings if your desired outcome occurs.
You must remember that the accepting party has effectively agreed that your desired outcome will not happen.
Yes. That’s right. The bookmaker or the matching bet on betting exchanges has bet against your desired outcome occurring.
This is sometimes confusing when placing bets with traditional and online bookmakers, as they offer a range of possible outcomes, but they rarely provide a market for all of us to place bets on a variety of events and outcomes.
Obviously, at least one of the outcomes will occur, so the bookmaker will make a profit across their entire book (I.e. all realistic outcomes that will occur within a given event) to protect their investment and pay for the overall service.
The bookmaker only wants to profit by balancing the bets within an event, such as a football match. The bookmaker also balances all wagers across their portfolio of betting options. This could mean that an unprofitable day for the bookmaker on one betting product within a single soccer fixture may be covered by a more profitable betting product within another soccer fixture.
The bookmaker may not be your friend, but trustworthy and reputable bookmakers will ensure you receive all profits owed to you
How much should you stake on the outcome of a soccer match?
Deciding on the stake that you will risk on any one specific football game is not an easy task. You must think about a few different ideas:
How to profit a specific amount from a football match?
If we look at 1X2 (i.e. Home Win, Draw or Away Win) bets, we can take the bookmaker odds information and then decide how we should place our bets to ensure we would profit by a specific amount.
If we assume you want to win 100 units of your currency (it’s an identical method to calculate, so don’t worry about different currencies).
We first need to know the bookmaker odds on the event. So, let’s take something real:
The average odds across a range of popular bookmakers for Dusseldorf vs Bayer Leverkusen from the German Bundesliga is shown below:
Home (1): 3.94
Draw (X): 3.73
Away (2): 3.04
If you planned to bet on every outcome, but you only wanted to receive 100 units in profit from each selection you would have to place the following stake on each wager:
Home (1) Desired Profit
Home (1) Stake = Desired Profit / (Bookmaker Home Odds – 1)
Home (1) Stake = 100 units / (3.94 – 1)
Home (1) Stake = 34.01 units
Draw (X) Desired Profit
Draw (X) Stake = Desired Profit / (Bookmaker Draw Odds – 1)
Draw (X) Stake = 100 units / (3.73 – 1)
Draw (X) Stake = 36.63 units
Away (2) Desired Profit
Away (2) Stake = Desired Profit / (Bookmaker Away Odds – 1)
Away (2) Stake = 100 units / (3.04 – 1)
Away (2) Stake = 49.02 units
How would this change for betting exchanges?
We need to reduce the odds by the betting exchange commission. You can do this by reducing the betting exchange odds by 0.045 (4.5% commission), 0.05 (5% commission) or 0.06 (6% commission), etc.
How would the betting exchange commission affect your stake if you wanted to return 100 units from an exchange bet?
Let’s use the same details as above, but we’re now hit by the 6% betting exchange commission if our wager is successful. Therefore, this will change the stake we need to risk as below:
All odds will be reduced to 94% of the presented value, as the Exchange platform will retain 6% of all profits. This effectively reduces the available odds and will ultimately damage Expected Value.
It’s important to understand, that higher odds on a betting exchange platform may not provide you with real larger odds after you have won a selection.
If we multiply each of the odds by 94%, we’re provided with:
Home (1): 3.74
Draw (X): 3.54
Away (2): 2.88
This has an effect on your stake and therefore, your bankroll calculations:
Home (1) Desired Exchange Profit
Home (1) Stake = Desired Profit / (Exchange Home Odds – 1)
Home (1) Stake = 100 units / (3.74 – 1)
Home (1) Stake = 36.46 units
Draw (X) Desired Exchange Profit
Draw (X) Stake = Desired Profit / (Exchange Draw Odds – 1)
Draw (X) Stake = 100 units / (3.54 – 1)
Draw (X) Stake = 39.32 units
Away (2) Desired Exchange Profit
Away (2) Stake = Desired Profit / (Exchange Away Odds – 1)
Away (2) Stake = 100 units / (2.89 – 1)
Away (2) Stake = 52.97 units
The betting exchange commission has increased the risk, but the commission rate is largely dependent upon the betting exchange and their policies.
Please be aware that betting exchange platforms may apply additional charges against your funds if you’re running highly successful and profitable betting accounts.
What is sports betting yield?
Now, you’ve successfully chosen your wager and decided on the stake, you should also maintain a record of your betting results, which should be independent of your bookmaker.
Maintaining a record will allow you to produce an accurate yield calculation across your bets. The yield is not the same as Return on Investment (ROI), sometimes Yield and ROI can be confused, as it’s easy to draw an inaccurate assumption with many websites include incorrect calculations. Many of the calculations exaggerate the yield a betting system or betting strategy.
Yield is a measure of how efficiently you’re allocating your stake within your wagers. You should calculate yield across a large selection of bets, so you have a long-term view.
Tracking your bets over a long period is important, so you can instantly visualise your betting efficient throughout your gambling history.
How can you improve your sports betting yield?
Your bookmaker’s reporting areas of their website will not allow you to add bets that you have placed against different bookmakers. The bookmaker or online sportsbook will also not provide you with integrations into external betting platforms, so you can track all accounts in one place.
You need to see a combined view of your different betting accounts and the only reliable method is to use a dedicated system independent of the bookmakers, so you can accurately track your betting performance.
If you track your performance, you can identify where your strategies are consistently losing you money.
Are you losing more selections that are between 1.8 and 2.1 odds? Do you get a large proportion of you 1X2 selections correct? Do you return above average profits with Goals Over selections?
How do we calculate sports betting yield?
Yield = Current profit or loss figure / Total amount money staked over time
Note: The Total money staked over time is also known as the Turnover
So, if we want to perform an example, we could imagine a soccer betting scenario where a sports gambler places 100 bets of 10 units each against 10 selections each with 2.1 bookmaker odds. The soccer punter has experienced a 52% success rate and would like to calculate their soccer betting yield.
Yield = Current profit or loss figure / Total amount money staked over time
Current profit or loss figure = Total money returned by the bookmaker – Total amount money staked over time
Current profit or loss figure = (0.52 x 100 bets x 2.1 odds x 10 units) - (100 bets x 10 units)
Current profit or loss figure = 1092 money returned – 1000 units staked
Current profit or loss figure = 92 units profit
Yield = 92 units profit / (100 bets x 10 units)
Yield = 0.092 or 9.2%
What is Return on Investment (ROI) in soccer betting?
Yield was concerned with the money risked in relation to the Turnover (or the total amount of money staked with a bookmaker or betting exchange) throughout your betting journey.
Whereas, Return on Investment (ROI) uses your starting bankroll.
If you review your starting bankroll and understand your current bankroll value, it will give you a ratio, which indicates how much your bankroll has increased (or decreased) relative to your starting position.
This is where long-term betting records and performance measurements will help you keep an eye on your betting numbers. A review of your betting performance will quickly tell you, if you’re really increasing your real bankroll and take-home money or if you’re running at a loss for an extended period.
Sports betting ROI is straightforward to calculate. Simply take your starting bankroll and your current profit figure. You simply divide the starting bankroll by your total current profit or loss.
If you started with a bankroll of 2000 units and your profit after 100 bets was 92 units; this would provide an ROI of:
ROI = 92 units profit / 2000 units bankroll
ROI = 0.046 or 4.6%
When do you use Yield and when do you use ROI?
Now the tricky part is to know when to use Yield or the ROI calculation.
Both measures will help you over the long-term, but sometimes it’s good to know your Yield from the very beginning, so you can track your overall betting efficiency, whereas the ROI is may offer more interesting results when used in a weekly, monthly or yearly comparison.
Comparing the ROI over a specific period will help you to track your profit performance when compared to bankroll over time. So, you can see if certain months are helpful for your bankroll or spotting ROI patterns throughout the year.
You can use this information to help you make better betting decisions over time!
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