In some handicapped games in OGS, the players given handicap are allowed to freely choose where to place the handicap stones instead of being given the standard handicap positions. I wasn’t sure if this is a common practice outside of the server. It certainly seems like being able to enclose all 4 corners with a 8 stone handicap is much harder to play against (as white) than having 8 stones on star points.
I believe this is standard for the Chinese ruleset, it’s just less known because it is widely believed that there is no better way to layout handicap stones than their default orientation (progressively opposing hoshi / star points)
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Handicap placement is determined per ruleset. Concerning the OGS specific rulesets, Japanese, and Korean do not use free placement. Ing SST, New Zealand, and Chinese do. AGA Rules give placement on the star points as the default, but permit tournament directors to specify free placement if they wish. However, on OGS AGA does not use free placement.
Handicaps are rarely something used in serious Go matches. It is usually recommended for teaching situations, to allow newcomers a chance against someone who knows the rules.
However, as you pointed out, handicap stones can affect gameplay to such a degree that the number of stones used is usually very low. You can read more about Handicaps at Sensei’s Library here.
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Thanks all for the information. It seems I am still not fully familiar with the different rulesets. 
Don’t sweat it. Most players aren’t 
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Handicaps are rarely something used in serious Go matches. It is usually recommended for teaching situations, to allow newcomers a chance against someone who knows the rules.
I was playing handicap games at real-board tournaments well into the SDK ranks. And if you count no-komi handicap, I’m still playing them now.
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I too am still playing some handicap games at tournaments. We don’t necessarily get a large number of people at tournaments (compared to mainland Europe I imagine) so there can be big jumps in ranking between the level you’re at and the person just above you.
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Oh, you’re also a Brit? Did you play at Maidenhead, or that one that was in the pub in the middle of nowhere?
Also, I always tell this story:
In my first ever real-board tournament, I entered at 11k.
The first game, I gave seven stones handicap.
The second game, I gave nine stones handicap.
And in the third game,
I gave nine stones and 135 points reverse komi.
The amusing thing is that the seven-stones girl had to score the board for me. She could easily have cheated me out of thirty or forty points and I wouldn’t have noticed lmao
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I just came up with this “gem formation” for eight stones.
Will White be able to cope in the centre?
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I’ve been thinking lately that nine stones isn’t a fair cap.
Here’s a formation I propose for thirteen stones:
There’s no reason except tradition to assume that the highest handicap should be nine stones. Let’s not forget the published 25-stone handicap game posted by Claire.
Sun formation for sixteen stones.
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WillerZ’s alternative five-stone handicap placement, from WhyIsThreeHandicapPlacedLikeThat/Discussion at Sensei's Library