Implied odds, pot odds and poker probabilities in Texas Holdem
One of the most important concepts of Texas Holdem strategy is relationship between the odds of winning and pot odds. Term “ pot odds” refers to the ratio of the pot size to the actual size of bet, necessary for a player to stay in the pot. For instance, if you have to call $20 in order to have a chance of winning an $80 pot, not including your $20 call, your pot odds are 4 to 1. In order to have a positive expectation, your odds of winning must be bigger than pot odds. That means that if your odds of winning are 4 to 1 (20% winning chance) and if you are planning to play 5 games, then your expected return is zero – one winning to four losses.
The next concept, implied odds, is more complicated, though it is also related to pot odds. In Texas Holdem, as well as in the other poker games, the implied odds on a hand are based on the expected size of the pot in the end of a hand, not current pot size. That means that, for example, when facing an even money situation described in the previous item and holding a premium hand like a flush, a Texas Holdem pro will consider calling a bet, or even opening proceeding from their implied odds. That is true for the multi-way pots, where it is likely that one or more players will be calling all the way to showdown.