Pot Equity; describe it in english please

I understand pot odds, implied odds, and reverse implied odds, but I am missing something when I read about Pot Equity.

I am very mathematically minded, I must just be looking at it from the wrong angle...

Can anyone offer an explanation of pot equity in a way that might be different than what is described at the beginning of SSHE?

Maybe I should be thinking of it as the opposite of odds?

But when I think about that, I don't see the point to viewing odds and equity at the same time if they mean the same thing, but with reversed numbers...

From the way I understand it, equity is the stake you have in the pot, or the percentage you figure to win if you make your hand. For example, if you flopped the nut flush draw, you figure to make it about a third of the time, so your pot equity is a third of the pot, because you will win one third of the time.

The pot odds are the amount you have to invest to win the pot.

The way to look at it is, is your investment worth the equity it will produce? It's more of an investment question than math.

So if you were buying a house with a value of 150,000, would you pay 145,000, or 175,000? But if you have the chance to buy a 150,000 house for 100,000, you'd probably take it.

[dogmeat]

Pot equity explained a different way?

How about this:

The pot contains $100 on the turn. Your hand is currently second best, and will improve to the best hand 25% of the time on the river. Your equity is $25.

If you were drawing at a nut flush and there were 9 cards that would make your hand, and 37 cards that would not make your hand, then you would have equity of $9 of every $46 dollars. If the pot in this example was $92, your equity would be $18 that you give up if you fold on the turn.

Dogmeat [img]/images/graemlins/spade.gif[/img]

Hmm still confused...

If I have to invest $1 in a $10 pot to win on a 4 flush draw, I have very favorable pot odds: 10-1.

Since I can expect to win 35% of the time, that means I have 35% pot equity.

Ok, I can see the numbers, but, I am still confused...

Hmm I think I just got it.

Pot Equity is just a fancy way of saying 'your chance of winning with the best hand at the showdown'.

Meaning, just because you have a pair and the pot is giving you 12-1 odds to call the turn doesn't mean you should, because even if you make your hand, you might lose to a bigger hand, because your pot equity (your chance of winning with the best hand at the showdown) is low.

Sound about right?

How about this example.

I call in late position with A [img]/images/graemlins/diamond.gif[/img] 2 [img]/images/graemlins/diamond.gif[/img] to a table full of limpers and the flop comes A [img]/images/graemlins/club.gif[/img] 3 [img]/images/graemlins/club.gif[/img] 3 [img]/images/graemlins/spade.gif[/img] and someone in EP bets, and it is folded to me.

I just had this hand in pot limit and I folded to a pot sized bet because I was thinking my equity wasn't there. Even if the bettor isn't semi-bluffing a four flush, he could already have me outkicked if he has an Ace (I played the hand for a flush draw, not for high card value), and if he is semi-bluffing a flush draw, he will make his flush draw too often to make it profitable for me to call a pot sized bet here, or am I wrong?

If I had a better kicker I would have had a harder decision, but I believe I made the right one here, based on pot equity. Correct?

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Pot equity explained a different way?

How about this:

The pot contains $100 on the turn. Your hand is currently second best, and will improve to the best hand 25% of the time on the river. Your equity is $25.

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So here, if the bet was $5, I would have 5-1 odds against my equity? But if the bet was $50, I would have to invest twice my current equity to win what I already had in the pot, making it an easy fold, yes?

If that's the case, why does it have to be explained this way? Maybe I am just trying to see it in a simple light and everyone is making it sound complicated...

Or maybe I am still missing the point...

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If you were drawing at a nut flush and there were 9 cards that would make your hand, and 37 cards that would not make your hand, then you would have equity of $9 of every $46 dollars. If the pot in this example was $92, your equity would be $18 that you give up if you fold on the turn.

Dogmeat [img]/images/graemlins/spade.gif[/img]

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The math here makes sense - that isn't the problem. I guess I just don't understand why we quantify it this way...

I don't see it as giving up $18 on the turn, I see it as giving up $92...

[Harv72b]

In the simplest possible terms, pot equity is your "share" of the pot. A percentage of the total pot equal to the percentage of the time that your hand figures to win.

I'd love to give an example, but I am most definitely not good at math. [img]/images/graemlins/smile.gif[/img]

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In the simplest possible terms, pot equity is your "share" of the pot. A percentage of the total pot equal to the percentage of the time that your hand figures to win.


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Ok, but why is it important? What difference does my share make? Why am I looking only at a portion of the pot and not the whole thing? Why would I even consider the importance of pot equity in superseding that of pot odds?

Is it as simple as I said? If it is the chance of you winning the pot, what does it have to do with a portion of the pot? Why am I not looking at the entire pot, since I already have pot odds to help me decide whether or not I am making a call with +EV, and since I already know whether or not I have a chance of winding up with the best hand (or is that what pot equity is, and if so, why doesn't anyone just come out and tell me that? ) [img]/images/graemlins/grin.gif[/img]

[Xhad]

Pot equity can be used to calculate whether to continue with a hand, the idea being that your equity in the money in the pot (including bets that are currently going into the pot, and if you want to include implied odds you can include bets you anticipate going into the pot) needs to be more than the amount you must call to stay in the pot.

You're right that this method of calculating pot odds is usually a little more complicated than necessary, the only time I would use it is for all-in situations in no-limit.

In limit, it's more useful when deciding whether to value-bet your hand or not, especially when draws are involved. The general rule is that if your equity is greater than the fraction of the money going into the pot this round if you bet/raise, then you can bet/raise for value.

The most common example is a flush draw on the flop. Since your equity is usually at least 33%, you can bet/raise for value if you anticipate the pot staying four-handed, but not otherwise (talking about straight value raising when you can only win with a flush, raising for a free card or if you have other outs is another story).

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Pot equity can be used to calculate whether to continue with a hand, the idea being that your equity in the money in the pot (including bets that are currently going into the pot, and if you want to include implied odds you can include bets you anticipate going into the pot) needs to be more than the amount you must call to stay in the pot.

You're right that this method of calculating pot odds is usually a little more complicated than necessary, the only time I would use it is for all-in situations in no-limit.

In limit, it's more useful when deciding whether to value-bet your hand or not, especially when draws are involved. The general rule is that if your equity is greater than the fraction of the money going into the pot this round if you bet/raise, then you can bet/raise for value.

The most common example is a flush draw on the flop. Since your equity is usually at least 33%, you can bet/raise for value if you anticipate the pot staying four-handed, but not otherwise (talking about straight value raising when you can only win with a flush, raising for a free card or if you have other outs is another story).

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Very well put, thank you.

The explanation about value bets helped a lot.

So raising PF with AK is a good thing because your pot equity is good even before seeing the flop, since you are holding the top two cards and have a good chance of winning often? That is also why value betting and even capping the betting with a pair, OESD and 4 flush on the flop is a good idea, because of pot equity?

Quite logical.

Now to learn to calculate it on the fly and apply it when required... Ugh