Poker Position
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Poker position is the term given to describe where you are seated on a table, with respect to the dealer and blinds - and remember that your position varies from hand to hand as the dealer changes.
Your poker position at any point in play can (and very often should) have a major impact on the playing decisions you make. There are four different positions on a poker table with relation to the blinds and dealer, assuming you're playing on a full ten player table (or close to it). When first starting out, it is advisable to adopt a tight-aggressive strategy until you understand the game mechanics. You can make a profit at lower limit games by simply playing the strongest hands from the best positions, and either raising when your hand is strong or folding if you feel it is beaten.
Early Position
You're in early position on the table if you are one of the three players to the immediate left of the dealer - the small and big blinds, and the next player after. These are the positions which give you the least benefits - and will often place you in a weak position - with the small blind being the worst. Here you'll be getting no clues from the betting of your opponents, as you're the first to act in any betting rounds. When you're among the firs to bet, there is no indication of whether opponents will bet big, or if it's wise to place your own big bet to try and force others to fold.
How To Bet in Early Position.
Clearly when you're seated in early position you need to be careful with your bets. The advice would be to only bet if you have a very strong hand on a full table, with the potential to take more chances with your starting hand strength on a short handed table with few players.
Mid Position
On a full table the next 3 players after the blinds and first to bet are in mid position. There are risks here where you have a chance to get a read on the first betting players but still don't know how the players in late position are going to act.
Betting In Mid Position
Betting here gives you more options, and you can begin to relax on the required hand strength on which to bet. As well as high pairs, you can consider high suited or unsuited cards or mid pairs - depending of course on the betting of those in front of you. You're looking for any weakness in the early bets, while still being cautious in case any high bets come in behind you.
Late Position
Late position refers to the last three players to the right of (and preceeding) the dealer. Late position is the strongest position, with all players in front having completed their bets or folded. Here you have the best information possible at this stage on which to base your bets.
Betting In Late Position
You've seen the action of every other player (except the dealer) and have clues on what their hand strength might be. By using this information, you can make decisions to play lower strength hands if you believe there is any weakness in bets already placed before you.
The Dealer
When you're the dealer, or on the button as it's known, you're in the strongest position at the table. You're fully aware of every other action taken before you, and have a huge advantage.
Betting In Dealer Position
Again the options are open to you to play lesser strength hands than normal if the betting in front gives you any clues that you might be able to use. Here you're going to know if you can see the flop cheaply. As a rule, when everyone folds to you in late position you should raise around 90% of the time, and if subsequently another player raises, you should come out over the top around 50% of the time.
Additional Links - Poker Position
About.com's poker position page gives some comprehensive background on the elements you need to consider. The video below covers the subject of position play in poker in depth.