Martingale Definition

The martingale system refers to an investor increasing their stake on a new bet each time they lose. The logic is that eventually a bet will win and the money lost will be earned back in addition to winnings.

Example

A prime example of the martingale system in betting could be used with roulette. A punter could place a bet on red and each time it loses, he or she doubles the bet so that when it finally wins the money is made back.

Martingale Pros and Cons
Pros
  • This system came into being because it has a lot of credibility and will most often “come off”.
  • When used correctly there is a significant chance of turning a large profit.
Cons
  • The main drawback of the martingale system is that you need a very large bank balance to guarantee making a profit.