effective odds

[FALCO]

can some explain how it works

[jimmer]

how what works???

[Muck]

how what works???

Effective Odds (see thread title).

Google has lots of links

3.4.3 Effective Odds

When you are considering the odds of making your hand with two cards remaining, it is difficult to estimate the expected cost to play those two rounds. For example, if there is $6 in the pot after the flop and your single opponent has just bet $2, then your pot odds are 3-to-1. However, you have two cards to make your hand so you must try to estimate the cost of the next round. Against a single opponent the worst case is that your opponent will bet next round and you will simply call; you would be paying $6 to win $10 (5-to-3) which increases the requirement for playing.

However, since you have two chances to make your hand your potential will improve as well. If you held 4:diamond: 8:diamond: and the board was 7:diamond: A:diamond: 6:club:, your estimated chance of hitting the flush or the inside straight (12 outs) after two cards is now 12/47 + 35/47 * 12/46 = .45, making it correct to call (or possibly raise) a bet on the flop.

[jimmer]

yes i saw the thread title, but surely FALCO would be better of with specific answers to examples he/she has, or hands he's/she's been involved in, rather than cut and pasting pages!

[suitedaces84]

Here's another good example of using effective odds:

You're in the BB with 26o. It's folded to the button, who is good but very aggressive player who steals blinds a lot. He raises, the SB folds. You're getting 3.5:1 on your money and you'll almost never be greater than a 3.5:1 dog. If calling the raise would put you all-in it would clearly be correct to call with any two.

However there are three more streets. By the time the hand is over you'll probably be getting to 1.3:1 or so. You're out of position and vs a good aggressive player who will raise with a wide range of hands you'll either end up folding a ton of winners or calling down with a ton of losers. You're also out of position. This will usually allow your oppoent to get an extra bet when he's ahead and save a bet when's he's behind.

Only looking at things from the perspective of pot equity and pot odds is flawed.

[Muck]

yes i saw the thread title, but surely FALCO would be better of with specific answers to examples he/she has, or hands he's/she's been involved in,

Yes, I agree completely. But he didn’t ask about a hand, he asked about a high level term. So I answered accordingly. NB: The answer did include an example hand.