# What is Equity Realization

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To Fully Understand The Term Realization, We Must First Understand Equity, Which The Definition Of Tandan Applies To Two Different Things. Sometimes It Represents Our Chances Of Winning (E.G. %Win) And Sometimes It Means Our Share Of The Pot. Let’s Create Specific Definitions For Both Of These First.

Hand Equity (HE) = Chance Of Us Winning

Pot Equity (PE) = Share In Our Pot.

By Which You Must Know If We’re Talking About Hand Equity, We Usually Use Estimation. Or We Can Use A Tool Like Equilab Where We Put In Our Hand And The Best Range Our Opponent Thinks He Will Have. This Tool Will Help Calculate The Percentage That We May Win. However, This Is Only An Estimate. Because A Player May Decide To Fold At Any Time (And Therefore Fold Equity).

Realization Or Realization For That Poker Refers To The Relationship Between Estimated Hand Equity And Actual Hand Equity, While Some Factors, Such As The Difference In Skill Among Players, Are Difficult To Calculate. But Other Factors Such As Position, Stack Depth And Other Abilities May Be Easier To Calculate.

Let’s Look At An Example. In A \$.50/1.00 Game During The Flop, The Player Before You Folds.

You Are In The Small Blind Position And Have 3h3s.

Both SB And BB Have \$100, You Raise \$3 And BB Call.

Flop Opens To Ts 7d 2h.

If We Assume BB Is Going To Call With 50% Range Of Hands

(Full BB Range Is: 99-22,A9s-A2s,K9s-K2s,Q9s-Q2s,J9s-J2s,T8s-T4s,97s-95s,86s-85s,75s-74s,64s,53s,42s+,32s, AJo-A2o,K6o+,Q7o+,J7o+,T7o+,97o+,87o,76o,65o,54o)

You Have HEestimated 49%.

If The Bet Is Not Added To The Pot (Assuming Both Checks Reach The River), Then Your EV Is

EVestimated = Pot * HEestimated = \$6.00 * .49 = \$2.94

So The Realistic Value EV Will Be \$1.34.

So Now You Can Calculate More Accurately In Terms Of Realization Or (R).

R = EVrealistic / EVestimated = 1.36 / 2.21 = .62

As You Can See, Being Out Of Position With A High Stack-To-Pot Ratio And Poor Hand Yields As Low As 62% Of The Initial Estimated Value.

If You Have A Chance, Try It Out And Practice Using These Calculations In Different Situations. You Will Know How Each Factor Affects Your Realization.

March 12, 2021