Equity
The equity of a player can only be calculated if the player is a part of the game. It is said to be the expected mathematical value of the current round for a player and is based on the amount of money that is placed in the pot multiplied by the probability of the player winning the hand based on the cards that s/he holds.
If the pot is at $100 and player A and B have a probability of ½ and ¼ to win the pot, the A’s equity stands at $50 while B’s equity stands at $25. The equity of players would change in the case of a possibility of a split pot. If there is a split pot, then along with their pot-win equities, players would also receive the equity based on the amount in the pot multiplied by the probability of the occurrence of a split. This amount is then divided by the number of players potentially involved in the split.
Continuing from the above example, if player A and B have a 1/5 chance of splitting the pot, then the equity of the split itself becomes $20. Since the split has to be divided amongst two players, the value of the split for A or B is $10 each. Therefore, A’s equity in case of winning the entire round or having a split result becomes $50 + $10 = $60 while B’s equity stands at $25 + $10 = $35.
Forrige begrep: Eight or better, Neste begrep: Expectation, expected value, EV
