Explanation of Equity
Pot-equity - Pot-equity , often simply referred to as equity , is a fundamental aspect of poker strategy. It indicates the proportion of the pot that we could claim if all players were to go to showdown. To determine our equity accurately, especially when we know the specific hands or ranges of hands, utilizing an equity -calculator is highly effective.
Consider a scenario in Texas Hold'em where we go all-in preflop with AKo while our opponent has TT. What are the odds of us winning this hand?
An equity -calculator reveals that AKo holds 43.123% equity , whereas TT has 56.877%. This means that when going all-in, AKo can expect to claim about 43% of the pot in the long run. If the total pot is 200bb (assuming both players have 100bb), AKo should ideally expect to secure around 86bb on average. In practical situations, it will either win the whole pot or nothing at all (with a rare possibility of a split). If we assess enough repetitions of this scenario, AKo's average gain will hover around 86bb. Therefore, from the moment we go all-in, our expected value can be approximated at 86bb.
Whenever we are all-in, we reach a showdown, establishing a clear connection between our pot-equity and expected value. However, the relationship isn't always straightforward. Expected value must take into account the chances of various players folding during the hand, which means it cannot be determined solely by observing pot-equity . Pot-equity doesn't provide insight into how often players choose to fold. Consequently, expected value calculations require consideration of both pot-equity and fold-equity .
Fold-equity – Fold-equity represents the probability that an opponent will fold upon facing a bet, expressed as a percentage. For instance, if we claim our fold-equity to be 40%, it means we anticipate our opponent will fold in 40% of these betting situations. This understanding of fold-equity can be combined with our pot-equity to estimate our expected value, which can be achieved through the expected value formula. For further details on this topic, refer to the glossary entry for expected value .
Other-Usage – The concept of equity originates from the investment world and can be used to denote an individual's percentage ownership in a company or investment. In a similar context, several professional tournament players opt to 'sell equity ' or 'sell shares of their action' in exchange for a portion of their buy-in.
For instance, if a tournament entry fee amounts to $10,000, a player may choose to sell 50% of their equity for $5,000. If the player wins a payout from the tournament, they are obligated to share 50% of the earnings with the equity purchasers. Often, professionals who sell shares include a markup, meaning that 10% of the buy-in price might not equate to a 10% equity stake in that player's tournament performance. A player with a strong historical track record of significant cashes might decide to sell an 8% equity portion for a sum equivalent to 10% of their buy-in.
Example of Equity used in a sentence -> We didn’t initially expect to be in a favorable position to win the hand, but we certainly had ample equity to warrant a call based on the pot odds we observed.
How to Use Equity as Part of Your Poker Strategy
Pot-equity - The significance of pot-equity is particularly pronounced in situations where players' stacks are nearly all-in. In these all-in circumstances, the expected value aligns closely with pot-equity . Conversely, in scenarios where there are still substantial chips left on the table, pot-equity offers little guidance regarding the hand's expected value.
Despite this, developing a rough estimate of our pot-equity can still be beneficial for evaluating implied odds in non-all-in scenarios. A popular method for approximating pot-equity is known as the two-times and four-times rule .
For guidance on counting outs, you can check the glossary entry on outs .
This methodology yields a working estimation of our pot-equity which can subsequently be applied to both pot-odds and implied-odds calculations during gameplay. However, it should be noted that this method may not provide an exact representation of our pot-equity , as demonstrated by examining the accompanying table. The reliability of the two-times and four-times rule tends to diminish as the number of outs increases. The table illustrates our pot-equity as a percentage likelihood to hit, alongside the probability of hitting shown in the conventional ratio format.
|
|
Flop to Turn |
Turn to River |
Flop to River |
|||
|
Outs |
% |
Odds |
% |
Odds |
% |
Odds |
|
20 |
42.60% |
1.35-1 |
43.50% |
1.30-1 |
67.50% |
0.48-1 |
|
19 |
40.40% |
1.47-1 |
41.30% |
1.42-1 |
65.00% |
0.54-1 |
|
18 |
38.30% |
1.61-1 |
39.10% |
1.56-1 |
62.40% |
0.60-1 |
|
17 |
36.20% |
1.77-1 |
37.00% |
1.71-1 |
59.80% |
0.67-1 |
|
16 |
34.00% |
1.94-1 |
34.80% |
1.88-1 |
57.00% |
0.75-1 |
|
15 |
31.90% |
2.13-1 |
32.60% |
2.07-1 |
54.10% |
0.85-1 |
|
14 |
29.80% |
2.36-1 |
30.40% |
2.29-1 |
51.20% |
0.95-1 |
|
13 |
27.70% |
2.62-1 |
28.30% |
2.54-1 |
48.10% |
1.08-1 |
|
12 |
25.50% |
2.92-1 |
26.10% |
2.83-1 |
45.00% |
1.22-1 |
|
11 |
23.40% |
3.27-1 |
23.90% |
3.18-1 |
41.70% |
1.40-1 |
|
10 |
21.30% |
3.70-1 |
21.70% |
3.60-1 |
38.40% |
1.60-1 |
|
9 |
19.10% |
4.22-1 |
19.60% |
4.11-1 |
35.00% |
1.86-1 |
|
8 |
17.00% |
4.88-1 |
17.40% |
4.75-1 |
31.50% |
2.17-1 |
|
7 |
14.90% |
5.71-1 |
15.20% |
5.57-1 |
27.80% |
2.60-1 |
|
6 |
12.80% |
6.83-1 |
13.00% |
6.67-1 |
24.10% |
3.15-1 |
|
5 |
10.60% |
8.40-1 |
10.90% |
8.20-1 |
20.30% |
3.93-1 |
|
4 |
8.50% |
10.75-1 |
8.70% |
10.50-1 |
16.50% |
5.06-1 |
|
3 |
6.40% |
14.67-1 |
6.50% |
14.33-1 |
12.50% |
7.00-1 |
|
2 |
4.30% |
22.50-1 |
4.30% |
22.00-1 |
8.40% |
10.90-1 |
|
1 |
2.10% |
46.00-1 |
2.20% |
45.00-1 |
4.30% |
22.26-1 |
To determine if we have sufficient equity to proceed with a call when faced with a bet, we need to assess whether we are receiving appropriate pot-odds or implied-odds . For practical insights on this topic, refer to the glossary entries concerning pot-odds and implied-odds.
Fold-equity – We can estimate the amount of fold-equity required for successful bluffing at specific bet sizes to be profitable. For deeper understanding, consult the glossary entries on bluffing and semi-bluffing .
See Also
Expected Value , Bluffing , Semi-bluffing , Pot-odds , Implied-odds , Outs