The Basics of Poker

A game of cards in which players place bets by placing chips (representing money) into a central pot before the hand is dealt. Players can also raise their bets during a round of betting, which is known as a “raising the pot.” The total amount of all bets placed before the flop, turn, and river is known as the pot size.

Poker is typically played with a standard set of poker chips that are assigned different values. Before the game begins, each player is required to put a forced bet into the pot, usually equal to that of the player to his or her left (called the button position). Once the players have a sufficient number of chips in the pot, the dealer shuffles the deck and then deals each player a single card face-up. The player to his or her right cuts the deck, and subsequent dealings continue clockwise around the table.

The cards in a poker hand are ranked according to their odds (probability). Two identical hands tie and share any winnings. The highest standard poker hand is a royal flush, which consists of five consecutive cards of the same suit.

Self-made billionaire Jenny Just says that one of the main lessons she has learned from playing poker is risk management. She explains that when your odds of making a good hand are diminishing, you should change your strategy rather than doubling down to try to recover from an initial loss. Just, who is the co-founder of PEAK6 Investments in Chicago, says she has applied this lesson to business as well.