Fold Equity

[MikeyG80]

I have read this in certain postings and articles and need some clearification on when someone refers there is enough fold equity to have my opponent fold, what exactly does this mean? Is it refering to he is receiving improper odds to call, that would be a mathematical proper laydown to fold the hand?

[lucky_mf]

Suppose you have a small flush draw and your the other guy in the pot has an overpair (on the flop). Your about 40-60 to win the pot. Your equity in the pot is 40%. Now lets say that he will fold 10% of the time if you bet. Your fold equity is now 10% and your total equity if you bet is 50%.

Lucky

[swingdoc]

Fold equity is the expectation value (EV) associated soley with your opponent folding to your bet. It's calculated by multiplying the chance that your opponent will fold by the amount you stand to gain if he does fold.

The area this is especially important is in tournaments. Take a sit-n-go tourney for example. Top 3 places make money. Say there are 4 people left and the blinds are big. Here your fold equity during pre-flop betting can be quite large because your opponents will be less likely to call an all-in as they risk their tournament life. Also since the blinds are big the already high chance of your opponents folding is multiplied by the large number of chips you stand to steal from the blinds.

http://en.wikipedia.org/wiki/Fold_equity