Unit

A unit is a standardized bet size, typically representing 1% of your total bankroll. Using units allows bettors to discuss sizing without revealing actual dollar amounts and to compare results across different bankroll sizes.

Standard Unit Sizing

Most professional bettors use:

Beginning bettors often use 1% units to limit variance during the learning phase.

Why Units Matter

Bankroll protection: Fixed percentage sizing prevents catastrophic losses. Even a 10-unit downswing only costs 10% of your bankroll.

Scaling: As your bankroll grows, unit size grows proportionally. $100 units at $10K become $500 units at $50K.

Comparison: "I'm up 45 units this season" is meaningful regardless of whether units are $50 or $500.

Variable Unit Sizing

Some bettors adjust unit size based on confidence:

This is essentially manual Kelly Criterion—betting more when edge is larger.

Unit Tracking

Tracking results in units reveals true skill:

Dollar results can mislead. Someone "up $10K" who bet $1M has terrible ROI. Units normalize for volume.

Units and Variance

Even with edge, expect significant unit swings:

• Standard deviation: ~15-20 units per 100 bets at -110
• Winning streaks: 10+ unit runs are normal
• Losing streaks: 15-20 unit drawdowns happen to everyone

This is why bankroll management matters. You need to survive variance to reach the long-term.

Units in Prediction Markets

On platforms like Kalshi, the unit concept applies directly:

• Total trading capital = bankroll
• Position size = units
• 1 unit = 1% of capital

A $5,000 Kalshi account might use $50 positions (1 unit) as the base sizing.

Related Terms

• Bankroll — The total capital units are derived from
• Kelly Criterion — Mathematical framework for unit sizing
• ROI — Return measured relative to units wagered
• Variance — Why proper unit sizing matters