When you turn a pot odds ratio in a % what does that % mean/represent??
Posted by tbeckett
Posted by
tbeckett
posted in
Low Stakes
When you turn a pot odds ratio in a % what does that % mean/represent??
Lets say I have a pot odds ratios 3:1 using the typical calculation 1/(3+1) x 100 = 25. You get 25%. What does that 25% represent/mean and how so??
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That % represents the equity required for a call to be breakeven. If you're offered 3:1 on a bet and you win 1/(3+1)=25% of the time then the bet is breakeven - EV = 1/4 * 3 + 3/4 * (-1) = 0.
Same idea in poker, except it's only that simple when facing a bet on the river (or an all-in on a previous street). On earlier streets it's complicated by the potential for more bets going in and thus equity doesn't translate directly to EV.
Thanks for your detailed and full answers Steve it really helps me out. I guess a better way would be asking what we actually doing here in terms of maths?? Are we converting odds to probability?? Is this breakeven point the same as implied probability in sports betting??
You're converting a ratio to a percentage. I strongly prefer the % because it's much easier to understand (for me).
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