Implied Odds

Implied odds take into account future bets which add to the pot size. Normal odds may say it isnt correct to call, but by implying a future payoff, the odds can become correct to call.

A very good example of this is early on in a tournament. Someone raises 6xBB to 120, with 3000 starting chips, you look down and see pocket 2's. Not really much benefit in calling such a big raise, but there are a reasonable amount of implied odds that if you make a set, the pot size (the "pay-off") could be quite large. Large enough to infact make the call, if you think your opponent could be inexperienced enough to commit all the rest of their stack post flop when holding hands like AA, KK and QQ

The adjusted pot value after considering an implied payoff is often refered to as the "implied pot".

Implied Odds are important to get right. You have to be clear what exactly you are trying to hit to get ahead. There is no point implying a pay-off for hitting 2-pair, only to still commit all your chips after hitting only a single pair.

Reverse Implied Odds

Wheareas normal implied odds apply to calls, reverse implied odds apply to bets and raises. It is implied that a call of your bet or your raise could lose you a larger amount than the current pot. If someone folds to these acts of aggression you will have gained nothing additional, but if they call you might lose a lot more.