B
boomeranged
Enthusiast
Silver Level
Let's say, you have a straight draw on the flop and there is 1000 in the pot. You are in position and the opponent bets 500 to you. So, with eight outs you have approx 32% chance to win it which gives you 1:3 ratio on winning the hand. At this moment if you call, you have to put 500 in the pot to win 2000 giving you 1:4 ratio on risk versus reward. Hence making it a profitable call as you have a better outcome if you win compared to how much you put in. You know what makes it even more profitable? Fold equity. What is Fold Equity? Let's say we have 50% chance of winning or losing any hand that we play against a single opponent and at the same time the opponent has 50% chance of winning it too. In the same scenario, you have 32% chance of winning the hand and assuming the opponent has the rest will be an intelligent assumption. Let's say when you reraise the already 1500 chip pot to another 1500 to play, you are giving your opponent the option to fold and hence 25% of his 50% share shift to your side of equation giving you 57% in total and hence improving your chances to win it. This extra leverage that you get when shifting your pressure on him and giving him the option to fold comes to your advantage in the long run and the money earned thus is called Fold equity.