Chip
A token representing money at the poker table.
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What Is Chip?
Chips standardize betting and make transactions faster and more secure than handling cash directly during play, with different colors and denominations representing different values. In tournament poker, chips have no direct cash value and simply represent tournament equity until the event ends and payouts are calculated. Chip stacks are a visual and psychological element of the game, with stack sizes influencing both strategic decisions and opponents' perceptions.
Examples
A cash game player exchanges $200 in cash for an equivalent stack of chips at the cage.
A tournament player's chip stack has no direct dollar value until the tournament pays out based on finishing position.
Strategy Tips
Learn to quickly estimate your own and opponents' chip stacks, since accurate stack counting is essential for calculating pot odds, implied odds, and all-in decisions. In tournaments, remember that chip value is not linear -- doubling your chips does not double your real prize equity due to ICM considerations. Practice good chip-handling etiquette at live tables, such as not splashing the pot and keeping your stack visibly countable for opponents. Use chip stack sizes relative to the blinds (stack-to-pot ratio and effective stack) to guide your strategic decisions throughout a hand.