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Old 10-31-2007, 02:43 AM
raze raze is offline
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Join Date: Nov 2005
Posts: 2,561
Default Re: Quick Question on Equity

If he was risking $27 to make $27, he would only have to win half the time (50% equity) to break even, right? Put in $27, and get back $54 half the time, and $0 half the time.

Since he's risking only $17.50 to make $27, it makes sense that he doesn't need to win even half the time to break even.

$17.50 / $44.50 = 39.3% equity needed to break even
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