Handicaps for the average golfer are determined by the course rating and slope and your scores over a set number of rounds. Each course is different and course ratings are determined by the USGA (United States Golf Assoc) You establish a handicap by playing a set number of rounds of golf, reporting your score and entering the rating of the course you played. This data goes into a computer data base. After a set number of rounds played you establish a handicap. Your handicap continually changes. Then, if you enter a USGA sanctioned tournament, your current handicap is applied to your score.

Let's say you have a 14 handicap and you enter a tournament. Each hole on the course is rated; 1 is the toughest hole on the course, 18 is the easiest. As a 14 handicap, you would be allowed one stroke for the holes that are handicapped 1-14. So if you are playing someone with a 10 handicap, in effect you are receiving 4 strokes.

That is a simplified explanation. Handicaps are an attempt to "level the playing field".