Stableford involves scoring points based on results at each hole. Using the index for each hole, players are able to make a mental allocation of their full handicap for each of the 18 holes. For example, a player on a handicap of 18 will add one shot to the par value of each hole to determine their own par for the hole. Thus a hole rated as a par 4 becomes a par 5 for the player.
The points scoring method is then calculated by allocating two points for a par, one point for one over, three points for one under, four points for two under, and so on. For example, a player receiving a stroke on a par 4 hole scores 4 giving them a net 3; for this the player receives 3 points. A player at a par 3 hole scores a 4 but does not receive a stroke; for this the player would receive 1 point.
Players who exceed their own par by two strokes score no points for the hole and, since they cannot improve on that result, they should pick up their ball. At the end of the round all points scored are added up and the player having the highest number of points is the winner.
When marking the score card, the number of strokes taken must always be shown for holes where points are scored. Thus, the card records both strokes and points. (Explanation Taken from golf.org.au)