Glossary
Pot Odds
Definition
Pot odds are the ratio between the current size of the pot and the cost of a contemplated call, expressed as a price you're being offered to continue in the hand.
Why it matters
Pot odds turn a call-or-fold decision into a comparison of numbers: the price you're being offered against your chance of winning. Players who ignore pot odds tend to either chase hands that aren't worth the price, or fold hands that are profitable to continue with.
Examples
If the pot is $80 and your opponent bets $20, you must call $20 to win a $100 pot. Your pot odds are 20% ($20 / $100). If you estimate you'll win the hand more than 20% of the time, calling shows a long-run profit.