Calculating Effective Odds

Figuring effective odds may sound complicated, but it is a simple matter of addition. You add all the calls you will have to make, assuming you play to the end, to determine the total amount you will lose if you don't make your hand. Then compare this figure to the total amount you should win if you do make the hand. This total is the money in the pot at the moment plus all future bets you can expect to win, excluding your own future bets. Thus, if there is $100 in the pot at the moment and three more $20 betting rounds, you are getting $ 160-to-$60 effective odds if both you and your opponent figure to call all bets. If you know you won't call on the end unless you make your hand, your effective odds become $ 160-to-$40. When you think your opponent won't call on the end if your card hits, your effective odds would be reduced to something like $140-to-$40. If, on early betting rounds, these odds are greater than your chances of making your hand, you are correct to see the hand through to the end. If they are not, you should fold.

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