Definition:
Compensation is usually defined as the factors that counterbalance an obvious disadvantage. The disadvantage can be
- material : like loss of a minor piece for two Pawns, or
- positional : like a badly placed piece.
- the compensation for the loss of a minor piece for less than three Pawns might be an attack against the King; or
- the compensation for a badly placed piece might be a better Pawn structure with a hope of extricating the piece.

