What is Bankroll?

How a bankroll works

A bankroll is a ring-fenced pot of money dedicated solely to betting activity. Before placing a single bet, a bettor decides on a starting amount — say £500 — and that figure becomes the baseline against which all performance is measured. Every stake comes out of this pot and every return goes back into it, so the current bankroll at any moment reflects the running profit or loss.

Bettors typically express individual stakes as a percentage or fraction of the starting bankroll rather than a fixed cash amount. A common approach is to stake between 1% and 5% per bet, meaning a £500 bankroll would see stakes of £5 to £25. This keeps exposure proportional and reduces the risk of a losing run wiping out the pot entirely. More aggressive staking methods, such as the Kelly Criterion, calculate stake size dynamically based on perceived edge, but these carry greater variance.

A worked example

Suppose a bettor starts with a £400 bankroll and uses level stakes of 2% per bet, giving a stake of £8 per selection. After 50 bets they have had 22 winners and 28 losers at an average price of 2.50 (decimal). Gross returns from winners are 22 × £8 × 2.50 = £440. Subtracting the total staked of £400, the net profit is £40, bringing the bankroll to £440 — a yield of 10% on turnover.

Had the same bettor used flat £50 stakes instead, a losing run of just eight consecutive bets would have cost £400 — the entire starting pot. This illustrates why expressing stakes as a proportion of the bankroll, rather than a fixed cash amount, is central to longevity. Even a profitable strategy can be ruined by poor bankroll management in the short term.

Why it matters when judging or following a tipster

When reviewing a tipster's track record, understanding their bankroll methodology is essential. A tipster who quotes results in points rather than cash assumes a starting bankroll of a set number of points — commonly 100 — and sizes all stakes relative to that. Without knowing whether they use level stakes, variable stakes, or something more aggressive, a subscriber cannot accurately replicate results or understand the true risk involved.

Bankroll size also directly affects how meaningful a drawdown figure is. A 20-point losing run sounds very different depending on whether the tipster operates to a 100-point or a 500-point bank. Before following any tipster, check whether their staking plan is stated clearly and consistently proofed. A strong yield built on reckless staking — large, inconsistent bets — is far less reliable than a modest yield produced through disciplined, proportional bankroll management over a large sample of bets.

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