From my FAQ, if you are a new player or even new to ranked games it might be helpful:
A. Your ELO is essentially your rating. It is determined by your win/loss ratio and how many games you have played. In normal queue your elo is hidden from yourself and others, but the matchmaking system still uses it to decide your opponents. In ranked games your elo is there for the world to see.
For more info on ELO / how the matchmaking system works, look here:
http://www.leagueoflegends.com/board/showthread.php?t=12029
A. Your ELO is essentially your rating. It is determined by your win/loss ratio and how many games you have played. In normal queue your elo is hidden from yourself and others, but the matchmaking system still uses it to decide your opponents. In ranked games your elo is there for the world to see.
For more info on ELO / how the matchmaking system works, look here:
http://www.leagueoflegends.com/board/showthread.php?t=12029

It's not determined by your wins/losses (please correct me if you have the facts tho). You gain elo depending on the combined elo of your team and the enemy team. If your team has higher you gain less/lose more and if it's lower you win more elo/lose less.
"That which can be asserted without evidence, can be dismissed without evidence." - Christopher Hitchens
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