A Traders Guide to playing Craps.
This resource guide will take what you already know about trading and translate it into playing the casino game Craps. The game of craps is truly similar to trading … you can bet long or short, hedge positions and take a flyers that has an opportunity to make 1000% on a single bet. So If you can trade then you already know how to play Craps.
We have divided this guide into five sections; Craps Basics, Place/Lay, Prop Bets, Table Rules and Strategies.
Trading Concept: Trading from the Long side Craps Equivalent: Play the Pass Line Description: The pass line bet is the most common wager used in the game of craps. This is considered a line bet because there is a large line area on the table layout where you can place your chips. The bet itself is simple, you are essentially wagering that the shooter will roll a 7 or 11 on the come out roll to win. If the shooter rolls a 2, 3, or 12 (which are craps numbers), then the player loses the bet. Note: the “Any Craps” bet can be used as a hedge during the come out roll. Trading Concept: Off setting risk associated with a long position Craps Equivalent: Play the Any Craps which is used as a hedge during the come out roll Description: Any craps, also known as Three Way, is a type of bet where the player wagers that the shooter will roll a 2, 3 or 12. These numbers are known as “craps” and they appear quite infrequently and have a low probability of winning. Basically, if the dice lands on either 2, 3 or 12, the player will win on any of these numbers. This is actually one of the more popular proposition bets. Trading Concept: Scale up an open position Craps Equivalent: Pass Line odds … also referred to as “Free Odds” Description: Once you have a Pass Line bet the shooter rolls until a point is establish (e.g. 4,5,6,8,9, or 10). Once set, you can back up the Pass Line bet with Odds typically 3X, 4X or 5X depending upon the point. So if the point is 4 or 10 you back up the bet with 3X odds, meaning 3 chips for every chip bet on the pass line. if the established point was a 5 or 9 then you back up the odds with 4X odds. Finally, if a 6 or 8 is established as the point then you can back up the odds with 5X odds. If the shooter rolls the point then you not only win your Pass Line bet, you also win the Odds bet. Bottom line this is a good bet to make when playing craps. Trading Concept: Trading from the Short side Craps Equivalent: Play the Don’t Pass Bar Description: The don’t pass line bet is the opposite of the pass line bet. When you make a don’t pass bet you are banking on the shooter to “seven out” before hitting a point number. It’s actually not a bad bet, but most people prefer to go with the shooter. Similar to the pass line bet, as a “wrong bettor” you must also place your chips on the area marked “Don’t Pass Bar” which is located directly above the pass line. Note: when people give me the nasty stare if I play the Don’t side when the table goes cold … I typically say “I’m here to make money”. Soon after that I see more people playing the Dark side. Trading Concept: Traders cheer as the closing bell rings at the New York Stock Exchange. Craps Equivalent: Gamblers groan as the Stickman yells “7 Out” quickly followed by clapping and cheers of “Good roll Shooter!” Description: There is an official close to every market, in the trading world the NYSE gets all the fan fair with the ringing of the bell. In the world of craps the close of a shooters roll occurs when they Seven Out after a point has been established. When the table is hot and money is being made … and audible groan (AHhhhhhhhhhhh) will be heard when the ineffable words “Seven Out” are uttered. Groans will quickly give way to gamblers saying “Good roll shooter”. Trading Concept: The closer you are to the action the better. Speed is king. Craps Equivalent: The closer you are to the wall the more control you have over the dice. Placement is king. Description: Any good craps shooter will tell you that the closer you are to the wall the better. This means standing immediately left or right of the stickman where you minimize the distance needed to throw the dice to reach the back wall. If you throw from the end of the table the dice will have further to fly and you will lose control of the dice. Stand next to the stickman, grab the two dice firmly together and with a slight arc let them fly hitting the table just in front of the back wall. The dice should bounce up hit the back wall and land with minimal dice movement … at least in theory. Trading Concept: Investing with a CTA that charges a 5% management fee and takes 30% of the profits may provide diversification but it comes at a heavy cost. Craps Equivalent: Field Bet Description: The main reason why players consistently “play the field” is because of all the different ways you can win. Think of it has diversification in a single one roll bet. There are seven numbers inside the field area that if rolled, will result in a win. The numbers are 2, 3, 4, 9, 10, 11 and 12. The problem is you lose If the shooter throws a 5, 6, 7 or 8. These numbers unfortunately have the best odds of being rolled … so you are getting diversification across numbers but it comes with poor odds. 
Trading Concept: Trading liquid futures from the Long side Craps Equivalent: Place the 6/8 (S&P 500), 5/9 (Gold) or 4/10 (Crude Oil) Description: The Place bet is simply a bet on a number. Roll the number before a seven and you win … it’s just that easy. In order to get the maximum odds payoff for a place bet the player should bet in units of $5 for all the numbers except the 6 and 8, which should be bet at $6. Note: Take a look at the image above, where we have two players … one knows what they are doing while the other does not. The point is Six as noted by the “On’ Button over the six spot. Player 1 (further away) has $25 on the Pass Line and has odd properly set at 5X, they have also correctly placed $24 on the Eight and bought the Ten. Player 2 (closer) has the incorrect odds on the Pass Line and on the Eight. Point is … before you trade or play craps understand what the game, the dealers and experts are there to help … use there knowledge & skill to benefit your bankroll. Trading Concept: Trading the markets from the Short side Craps Equivalent: Lay the 6/8 (S&P 500), 5/9 (Gold) or 4/10 (Crude Oil) Description: The Lay bet wants a seven rolled BEFORE the number. Trading Concept: Add to existing position to improve overall odds Craps Equivalent: Buy the 4 or 10 Description: The buy bet is similar to the place bet; the difference between the two bets is that the buy bets pay off at true odds. This really only works for the 4 and 10 buy bets as they carry the lowest casino edge if bought for at least $20 as it reduces the casino edge from 6.67 percent (place bet edge) to 4.76 percent (buy bet edge). Note: Trading Concept: You want to buy the various markets Craps Equivalent: Come Bet … you’ll never know which number you will get, but assuming no seven, you know you’ll get good odds on the 4, 5, 6, 8, 9, or 10. Description: The come bet works much like the pass line bet with the only difference being that you bet after a point has been established. The rules are still the same as the regular pass line bet. Once you make the come bet and your chips are in the come bet area you will win if the shooter rolls a seven or eleven. As soon as the shooter rolls a number other than 7, 11, 2, 3 or 12 the dealer will pick up your chips and place them in the corresponding point number box which is located across the layout of the table. Similar to the pass line bet if the shooter rolls the point number before rolling a seven you will win. Trading Concept: Contrarian Traders Craps Equivalent: Don’t Come Bet … perfect for when the table is ice cold Description: The don’t come bet is similar to the don’t pass bet, but opposite of the come bet. Once a shooter establishes a point number then the dealer will move the don’t come bet to the top of the specific point number box. Now the player will win if a seven is rolled before the point number is repeated. As any trader knows … sometimes the contrarian point of view is the only way to make money. Trading Concept: Why buy a loaded S&P Index mutual fund when you could buy a lower cost ETF? Craps Equivalent: Big 6 Big 8 Description: A lazy way to place a bet on either the 6 or 8 … but it comes with worse odds then simple telling the dealer to place the 6 or 8. Note: If you see someone play the Big 6 or 8 you can be assured that they have no clue as to what they are doing. Be smart, don’t bet the Big 6 or 8.
To differentiate between a place and buy bets a “Buy” chip is placed onto of the chips.
but would prefer to delegate market selection to your broker
Trading Concept: A Long position with nice upside potential Craps Equivalent: Hardway Bet (4, 6, 8 & 10) Description: The hardways are four numbers which each have their own designated spot in the center of the craps table. These numbers include the 4, 6, 8, and 10. To roll a hardway number you must roll an exact pair of numbers (doubles), for example, if a player is putting money on the hard 6 the player is betting that the shooter will roll a 3,3. The 3,3 combination is the only way a player can win on a hard 6, any other combination that adds up to 6 is known as a soft or easy 6, for example, a 1,5 2,4 5,1 4,2. If a number “comes easy” your hardway bet is a loser. Trading Concept: Deep Out of the Money Option Craps Equivalent: Hop Bet Description: A hop bet is a one roll wager in which you call out what you think the next roll will be. If you can guess the right number, you will be paid handsomely to the tune of 15-1 odds. If you call the dice to roll “doubles” on a roll, the odds double to 30 to 1. Trading Concept: Speculative ETF Craps Equivalent: Horn High Yo Description: The $5 “horn, high yo,” bet puts $1 on 2, 3 and 12, and $2 goes on 11.
Trading Concept: Futures Margin Craps Equivalent: Minimum Table Rate per Bet Description: This the minimum bet size for the table. Typically you will find $5, $10 and $25 dollar tables on the main floor … if you’re looking for higher stakes check out the High Roller area. Trading Concept: Market Quotes Craps Equivalent: Dice … it’s all about the dice Description: Let’s go shooter … grab two and let them roll. Note: the rule is both dice must hit the back of the table and they can not be thrown higher than eye level of the stick person. Other than that let them fly. Trading Concept: Trading Capital Craps Equivalent: Chips on the rail Description: Bet what you can afford to lose. Trading Concept: With great power comes great responsibility Craps Equivalent: All the chips in front of the Box Man Description: Trading Concept: CFTC Regulators Craps Equivalent: Pit Boss Description: Pit Bosses are the distinguished looking, experienced professionals responsible for all the gaming operations taking place within their assigned pits. As the title implies, the Pit Bosses supervise the casino staff working within their designated pit. When disputes arise, the Pit Boss serves as a properly functioning mediator. Trading Concept: Broker Dealer Craps Equivalent: Box man Description: The Boxman: Seated behind the casino’s bank, the boxman guards the chips, manages the dealers, handles coloring up exchange of chips for the players. Trading Concept: Broker Craps Equivalent: Dealer/Stickman Description: 2 Base Dealers: One dealer stands on the Boxman’s right, the other on the left. The dealers are responsible for collecting and paying bets for the players on their specific half of the table (determined by which side of the Boxman they stand). Trading Concept: Insider Trading Craps Equivalent: Weighted Dice Description: A professional shooter that can switch out the casinos dice for crooked dice could make a lot of money. Just remember the Eye in the Sky is always watching. Note: Any time the dice go off the table the Boxman is responsible for closely inspecting the dice to ensure that a switch has not been made. Additionally, shooters are never allowed to move the dice from hand to hand before rolling … the casinos know what to look for when it comes to cheater/insider traders. Trading Concept: Electronic Trading Craps Equivalent: Bubble Craps Description: Same game in an electronic form … Trading Concept: Buttonwood Tree where the New York Stock Exchange began Craps Equivalent: Hazard – Crapaud – Craps Description: The game has changed over the years.
A typical table has $100,000 in chips as a start: 
The Stickman: Stands directly across the table from the Boxman, takes and pays the center bets on the table, or directs either one of the base dealers to do so, announces the results of each roll, usually using a very distinct patter, and moves the dice across the table using a long wooden stick, which is the origin of the name stickman.
I prefer the pits.
Trading Concept: Trading from the Long side and never look back Craps Equivalent: Play the boring Pass Line Description: The Pass Line bet allows you to bet with the shooter and against the casino. It’s the fun way to play to get a feel for the game. All you need to do is place a bet on the Pass Line and only place odds if a 6 or 8 is established as the point. If the point (e.g. 6 or 8) is thrown before the Seven you win. Trading Concept: Consistent contributions to your 401k plan is a great way to plan for your retirement Craps Equivalent: Play the Pass Line with Odds and place bets on the 6 and 8. Description: A conservative way to play craps is bet the Pass Line, backing it up with minimal odds on the 4, 5, 9 & 10 and then with full odds on the 6 & 8. Once the point is established place table minimum odds on the 6/8 or both. No major strategy here but it’s a good way to watch and learn the game. Trading Concept: Add to your winning position. Craps Equivalent: Press one unit. Description: A simple craps strategy to increase your winning is to “Press” your positions. If you have a Place bet on 8 and if it hit press the position one unit. As an example you have $12 on the 8 and it hits, pressing it one unit ups the bet to $18 and you receive the change. If it hits again the bet is pressed to $24 with you receiving the change. Place bets on the 6 & 8 work in in $6 units while all the other number work in $5 units. Trading Concept: Trading Range … buy Over Sold Conditions and sell Over Bought conditions. Craps Equivalent: Bet two Come bets followed by two Don’t Come bets. Description: The Come bet allows you to place odds on a number once the shooter establishes a point. Do this two consecutive times followed by two consecutive bets on the Don’t Come. This allows you to bet with the shooter for a couple of rolls and then begin to hedge your bets against a Seven. The longer the shooter rolls the more likely they will be to Seven Out. The dice may not have a memory, but the odds favor the Seven every time they are rolled. Trading Concept: Trading form the long side during a cyclical bull phase within a strong secular bull market. Enjoy the ride. Craps Equivalent: Fire Bet. The craps table above has hit 5 of the 6 numbers. Note the chips at the top of the table on every number but the 8. One more number and the fire bet will pay 1000X Odds Description: The goal is to have the shooter go on a hot streak. The shooter must consecutively roll different points. After each point has been rolled, the dealer will put a “fire” marker on that number. There are 6 possible point numbers available: 4, 5, 6, 8, 9 and 10. If the shooter hits 4 different numbers the payout is 25X, if 5 different numbs are hit the payout is 250x and if all six numbers are hit the payout is 1000x. Note if you hit on any wager over 299:1 the casino will have you sign tax papers right at the table. Trading Concept: Portfolio Diversification Craps Equivalent: All Small/All Tall/Make Em ALL. Note the image above … the chips below “BONUS Craps” cover all the low number (left) and high number (right). Winner winner chicken dinner! Description: To win the “All Small” bet, the shooter must hit five small numbers (2,3,4,5,6) before a seven. The bet pays 35-for-1, so the house has an edge of 7.76%. The house edge is the same for “All Tall” Again, five numbers have to be hit before a seven (8,9,10,11,12). The order in which they’re rolled doesn’t matter. “Make Em All” pays 176-for-1 with a house edge is 7.99%, as the shooter has to hit a mere 10 numbers before a seven (2,3,4,5,6,8,9,10,11,12). Trading Concept: Short the market with an in-the-money call option. Craps Equivalent: Lay the 4 and hedge with a hard Four. Description: When you Lay a bet you are wagering that the number will NOT come up before a Seven. Since the 4 & 10 have worse odds to be rolled then the Seven; Statistically it’s a good bet. To be safe you might want to bet the Hardway 22 or 55 just to lower the odds a bit further. So the only rolls that can hurt you for the 4 is 31 or 13 and for the 10 is 64 or 46. Seven on the other hand have six ways to be rolled 16, 61, 25, 52, 34 or 43. What’s the catch … you have to bet more on the Lay 4 or 10. Still playing the odds with a little extra hedge might payoff in the end. Trading Concept: Blue Horseshoe loves Anacott Steel. Craps Equivalent: Place bet on a single number and Parlay Parlay Parlay. Description: Think you know when a number is going to get hot … well then it’s time bet big to win big. Begin with a Place bet on any number you like and if it hits let your winnings ride on the next bet (i.e.Parlay). Parley your winnings three times and take your bet down. Trading Concept: Bubble Market … they are fun, Craps Equivalent: Play the Come bets and eventually cover all the points. Description: The Come bet allows you to place odds on a number once the shooter hits a number after the point is established. Assume 10 is the point and you bet the Come five consecutive times with the shooter having hit 4,5,6,8 and 9. You will then have all the numbers covered with the 4,5,6,8 and 9 based on the Come bets and 10 based on the Pass Line bet. We call this a “bleeder’ as you’ll have a lot of money on the table and you are a Seven away from a major Bubble market loss. If you find yourself with a bleeder on the craps table or with money invested in a bubble market … the best solution is to take down your bets or divest your holdings while you wait for conditions to change. Trading Concept: When you see something say something this is the motto of the whistle-blower Craps Equivalent: Killing the mojo of the table Description: The table is loud and it catches your attention. You can see the table has been hot as there is a lot of money spread across the numbers. The game is on and the point is 4. Statistically speaking that’s a hard number to hit. As the whistle-blower it’s your job to educate those at the table that odds are not in their favor. This is the time to Lay the 4. The table wants the 4 but your betting that a Seven will hit before the 4. When you win take the money and run. Run very fast as no one likes the whistle-blower.
exciting and highly profitable until they burst.