Chip EV vs $EV: why tournament chips aren't money
In a cash game, chips are money: a $100 stack is worth $100. In a tournament, chips are only a means to win prize money — and their value isn’t linear. That’s the difference between chip EV and $EV.
Two kinds of expected value
Section titled “Two kinds of expected value”- Chip EV (cEV): does a decision win chips on average? See expected value.
- Dollar EV ($EV): does a decision win prize money on average, given the payout structure?
Early in a tournament they’re almost the same. Near the money and at final tables, they can be very different.
Why chips lose value as you get more
Section titled “Why chips lose value as you get more”- If you double your stack, you don’t double your expected prize money — first place pays a fixed amount, no matter how many chips you have.
- If you lose your stack, you lose your chance at all remaining prizes.
So the chips you could lose are worth more than the chips you could win. That’s why tight play near the bubble can be correct even when a call is +cEV. See ICM and bubble play.
Example
Section titled “Example”Near the bubble of a satellite, calling an all-in with A-K vs a random hand is +cEV (you win chips on average). But if you’re almost certain to win a seat by folding, the call can be −$EV. See satellite strategy.
When to think in each
Section titled “When to think in each”| Stage | Main focus |
|---|---|
| Early levels, deep stacks | cEV — build chips |
| Bubble, pay jumps, final table | $EV — ICM matters. See pay jumps |
| Heads-up for the title | Close to cEV again — second place is locked in |
See also final table deals and tournament strategy.
What is chip EV?
Section titled “What is chip EV?”The average number of tournament chips a decision wins or loses.
What is $EV in poker tournaments?
Section titled “What is $EV in poker tournaments?”The average prize money a decision wins or loses, given the payout structure.
Why are tournament chips not worth the same as money?
Section titled “Why are tournament chips not worth the same as money?”Doubling your stack doesn’t double your prize equity, but losing it ends your chance at all prizes.
When does the difference between cEV and $EV matter most?
Section titled “When does the difference between cEV and $EV matter most?”Near the bubble, at big pay jumps and at final tables.