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Funded sports betting glossary
Plain-English definitions of the terms you will see in funded betting challenges, from profit targets and drawdown to CLV and the Kelly criterion.
American odds
Odds shown as a positive or negative number, such as +150 or -110. A positive number is the profit on a $100 stake; a negative number is the stake needed to win $100.
Bankroll
The total amount set aside for betting. On a funded account, the simulated account balance plays this role, so you never deposit your own bankroll.
Challenge
A paid evaluation where you bet a simulated account and must hit a profit target without breaking the risk rules to earn a funded account.
Closing line value (CLV)
How the odds you took compare with the final odds before the event starts. Consistently beating the closing line is a strong sign of skill.
Daily loss limit
The most an account can lose in a single day. At BetFunder it is 10% of the account. Breaking it ends the challenge.
Decimal odds
Odds shown as the total return per 1 unit staked, including the stake. Odds of 2.50 return 2.50 for every 1 staked.
Drawdown
A fall in account value from its starting point or a previous high. Challenges limit how large a drawdown can be.
Edge
Your advantage over the market, usually expressed as the difference between your estimated probability and the probability implied by the odds.
Expected value (EV)
The average profit or loss you would expect from a bet if you placed it many times. Positive EV bets are profitable in the long run.
Flat staking
Staking the same amount on every pick, usually a fixed percentage of the starting balance. Simple and well suited to challenges.
Funded account
The simulated account you receive after passing a challenge. You keep up to 80% of eligible profits from it.
Implied probability
The chance of an outcome suggested by the odds. For decimal odds, it is 1 divided by the odds.
Kelly criterion
A formula that sizes bets based on your estimated edge. Most bettors use a fraction of Kelly to reduce volatility.
Maximum overall loss
The total amount an account can fall during a phase. At BetFunder it is 15% on 1-Phase and 20% on 2-Phase and 3-Phase challenges.
Moneyline
A bet on which team or player wins, with no point spread involved.
Parlay
A single bet combining several selections, all of which must win. Parlays pay more but lose more often.
Payout cycle
How often you can request a payout from a funded account. At BetFunder, payouts can be requested every 14 days.
Phase
One stage of a challenge with its own profit target and a 30-day limit. Challenges have one, two or three phases.
Point spread
A handicap that gives one team a head start, used to balance a matchup. The favourite must win by more than the spread.
Profit split
The share of eligible profits you keep from a funded account. At BetFunder, it is up to 80%.
Profit target
The profit you must reach to pass a phase: 20% on 1-Phase, 15% then 10% on 2-Phase, or 10% per phase on 3-Phase.
Prop bet
A bet on a specific event within a game, such as a player’s points or a team’s first score.
Return on investment (ROI)
Profit divided by the total amount staked. A sustained ROI of a few percent is a good long-term result.
Simulated capital
Virtual account funds used for challenges and funded accounts. You never deposit real money into the account.
Stake limit
The minimum and maximum amount allowed on a single pick. Limits depend on account size; see our Rules & FAQ.
Totals (over/under)
A bet on whether the combined score of a game will be over or under a set number.
Unit
Your standard stake size, often around 1% of the account. Measuring results in units makes them comparable across account sizes.
Variance
The natural swings in results caused by luck. Even skilled bettors have losing streaks, which is why staking discipline matters.
Vig (juice)
The margin built into odds by the bookmaker. At -110 on both sides, you need to win about 52.4% of bets to break even.
Want the full challenge rules? Read our Rules & FAQ or browse the guides.
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