Fold equity?

What does Fold equity(FE?) and pot equity mean?

Do a search in this forum - it was discussed a few weeks ago.

[Kurn, son of Mogh]

The equity of your hand is its current value before showdown. There are two components to that value. 1) The value it has at showdown, and the value it has when your opponent folds. The portion of your EV that comes from the times your oppnents fold is fold equity.

An example of pot equity - you're in the BB with AA and there have been 6 limpers and the SB has completed to you. That puts 8 bets in the pot. Even though AA is a dog against 7 opponents, you raise. Why, because AA wins approx 30% of the time here, so your current equity in the pot is 2.4 bets, so you raise in anticipation of everyone calling. Your extra investment brings in additional equity whether you end up winning *this* hand or not.