Link equity
Link equity (often called "link juice") is the ranking value passed from one page to another through a link.
When a page links out, it shares a portion of its authority and relevance signals with the destination. That transferred value, link equity, is one of the core mechanisms behind how backlinks improve rankings. The amount passed depends on factors like the linking page's own authority, how many other links sit on that page, and the link's relevance to the target.
Several things control whether equity flows. A dofollow link passes equity; a nofollow link, rel sponsored, or rel ugc link signals that it should not (or should be discounted). A redirect 301 passes most of the equity from the old URL to the new one, while a canonical tag consolidates equity onto the preferred version of duplicate pages.
Practically, link equity is why placement matters as much as acquisition. A contextual link inside body copy on a relevant, high-authority page passes far more value than a link buried in a footer or on a page with hundreds of outbound links. You also distribute equity internally: smart internal link structure channels authority from your strongest pages toward the ones you most want to rank.