You can say that “equity” is a fancy word used for your winning percentage. We usually use the term equity in terms of the percentage of the time you would win a hand. Only one of the two players will win the entire pot depending on the cards that will hit on the turn and river or who forces the other player to fold with a bet or a raise. This does not mean that you will win $100 out of $200 right away. So, you have $100 equity based on the 50% chance of winning the hand on the flop. If the pot on the flop is $200 and you have a 50% chance of winning the hand, your equity is $100.Įquity = Share of the pot based on the chances of winning Let’s look at an example: You are up against a single opponent on the flop. Thus, equity changes on the preflop, flop, turn and river. What is Equity in Poker?Įquity, also known as pot equity, is the rightful share of the pot that belongs to you based on the chances of winning the hand at the current point in the play. This would be a simple definition of poker equity, but it has a far deeper meaning and usage in the game. It tells you what’s your share of the pot based on your chances of winning. In poker, you can define equity as your share of the pot, which you have invested from the preflop. It represents the amount of money that would be returned to the shareholders if all the assets are liquidated. Equity in the business world refers to the amount of capital invested or owned by a company’s shareholders.
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