it’s a point system like levels in video games. for example, if you’re at 1200 rating and beat another guy who’s also 1200 rated, you will gain 5-10 points. however, if you’re 1200 rated and you beat a guy who’s 1300 or 1400 rated (basically anyone who’s rated more than you) you gain a lot of elo points. and if you lose to a 1000 or 900 rated player you lose a lot of elo
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