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Definition of Equity - Pot Equity

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Equity - Your "rightful" share of a pot.


Equity is an important part of poker strategy and is fairly easy to understand. The term is mistakenly interchanged with the term expectation, but it is different.

 

Basically, your equity is the amount of the pot that is "yours" based on your percentage of winning the hand. Say for example, you have a 68% of winning a $100 pot, then your equity would be $68. If you were the underdog in a $100 pot and only had a 17% chance of winning, you would still have equity that equals $17. This term is somewhat fanciful since you will either win $100 or $0, but it reveals your current expected share.

A person's equity changes throughout the hand. Even a hand like AA that is a huge favorite preflop in Texas Holdem, can find themselves drawing dead (o% equity) on any given hand once the community cards are dealt.


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