GlossaryAt the table

Side pot

A second pot for chips an all-in player cannot match, which only the players still covering can win.

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What it means
When a player goes all in for less than the others are betting, the pot splits in two. The main pot holds what the all-in player can win: their stake, matched by each caller. Every chip bet above that goes into a side pot that the all-in player has no claim on.
How it is calculated
Build the pots from the smallest stack up. Take the all-in amount from every player in the hand to make the main pot, then put what is left into the side pot. With a second short all-in, repeat the step, so there can be several side pots. At showdown the side pot is settled first among the players in it, then the main pot among everyone.
Worked example
A goes all in for 20, and B and C each put in 50. The main pot is 20 × 3 = 60, open to all three. The side pot is 30 × 2 = 60, open to B and C only. If A shows the best hand, A wins 60, and the better of B and C wins the other 60.
Why it matters
A short stack can win only what it covers, so a big pot can be split between two winners. Knowing how the pots divide tells you what you can still win when you call a short all-in and what you are playing for against the other caller.

See also: All-in, Split pot, Covering stack, Effective stack