Chips are not money

In a tournament, doubling your chips does not double your prize.

So a spot can win chips and still lose money.

ICM is that difference, expressed as a number.

• ICM

  Independent Chip Model: a way of turning chip stacks into expected prize money. Doubling your chips does not double your prize, which is why chips and money can point in opposite directions.

• risk premium

  The extra equity you need before calling once prize money is counted. It grows when busting out costs you a lot and the payout jumps are steep.

• the bubble

  The point where one more player must bust before everyone left is paid. Pressure peaks here, and so does the risk premium.

20 hands or more, with an optimal rate of 60% and average EV loss no worse than 0.15BB