The rating system is based on a 32 points system. If both players are equal in skill level (rating) the winner will gain 16 points and the loser will lose 16 points. The further the gap in strength the scale slides. For example if a 1400 rated player loses to a 1200 rated player, the higher rated player may lose about 22 points, but if he wins he will only win about 10 because 'theoretically' he's not supposed to lose. It works both ways. So, if the lower rated player wins he will gain substantially more points than when he loses to a stronger opponent.
Hope that helps!
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